Yang Delong is the chief economist of Qianhai Open Source and a director of the China Chief Economist Forum
Recently, the national team has stepped up its efforts to rescue the market, ** Huijin Company announced the expansion of the scope of ETF holdings, providing huge confidence support and financial support to the market, and Huijin Company also said that it fully recognizes the allocation value of the current market. Subsequently, the China Securities Regulatory Commission responded that it was very supportive of Huijin Company and other institutions to increase their holdings of ETFs, and would guide more institutional investors, including public offerings, private placements, social security, annuities, etc., to enter the capital market, bring more incremental funds to the market, and better stabilize the market and expectations.
From the policy point of view, the recent policy benefits emerge in endlessly, for the market is worried about more short problems, the China Securities Regulatory Commission has announced that the suspension of securities lending and shorting of new increments, and gradually reduce the stock of securities lending until the cancellation, which greatly weakens the power of market shorting, the China Securities Regulatory Commission supports the mergers and acquisitions of listed companies, and encourages listed companies to give back to investors through the repurchase of shares and cash dividends, which is a very strong support for the market. The China Securities Regulatory Commission also ushered in a new chairman, Chairman Wu Qing, who has experience in supervising the industry and the industry, has a very good understanding of the market, has a relatively senior experience in the industry, and has a deep understanding, which is conducive to the long-term development of China's market and industry, and is very beneficial to promoting the reform of the capital market and long-term healthy development.
At the time of the early market large, many investors did not have confidence, I encouraged everyone to maintain confidence and patience in the position of the historical bottom, do not be scared away by short-term market fluctuations, only at the bottom of the layout of a good company, good ** in order to obtain excess returns, but also repeatedly called on the national team to increase the rescue efforts, the scope of buying ETFs from CSI 300 and other ** stock ETFs to the ChiNext index, the Science and Technology Innovation Board index, and other small and medium-cap index ETFs, So as to achieve the effect of improving market expectations in an all-round way. At the same time of saving A shares, it is also necessary to save Hong Kong stocks, because there are more linkages between A shares and Hong Kong stocks, such as Hong Kong stocks Hang Seng International Index and Hang Seng Technology Index are popular indices with relatively high market attention.
While the national team is stepping up its efforts to rescue the market, listed companies are also taking action. Recently, many listed companies have announced the news of large-scale repurchases, and the repurchase tide of listed companies represents that the current market is seriously undervalued. The major shareholders of listed companies are willing to use real money to increase their holdings and repurchase the company's shares, and some of them are directly cancelled, which indicates that the major shareholders are not satisfied with the current stock price, and believe that it is seriously lower than the intrinsic value of the company, and at the same time release a signal that the company is optimistic about the company's future development prospects, which is also an important performance to boost market confidence. Buybacks in the market downturn can also greatly boost investors' confidence in the company, for a large number of repurchase of listed companies, we can give a certain amount of attention, and then combined with fundamentals to judge whether it has long-term investment value. The repurchase tide of listed companies is a positive signal, which shows that the stock price of many listed companies has fallen out of value, especially some high-quality leading stocks are only two or three folds relative to the high point, and the future growth potential and potential are very large.
The valuation recovery and valuation repair of high-quality leading stocks are the main investment lines in 2024, and they are also an important direction to fight a beautiful turnaround in 2024 and obtain a good return on investment in the Year of the Dragon.