Today, there has been a general rise in the A** field, with major stock indexes rising sharply and market sentiment improving significantly. Analysts believe that the main reasons for this wave of surge are as follows:
First of all, the good news in the market is frequent, and the rescue action continues to exert force. On February 5, the China Securities Regulatory Commission issued four statements in one day to actively respond to market concerns. These measures include guiding securities firms and other institutions to increase the flexibility of the liquidation line, intensively visiting listed companies in 20 provinces, autonomous regions and municipalities across the country, strengthening the supervision of financing business to ensure the smooth operation of the market, and reporting three cases of malicious short-selling suspected of manipulating the market. These measures have played a positive role in stabilizing market confidence.
Secondly, the CSI 1000 Index has become the entry point for the rescue of the market, and the liquidity crisis of small and medium-sized caps has been significantly alleviated. Judging from today's ETF** trading volume, the trading volume of CSI 1000 ETF, CSI 500 ETF and ChiNext ETF has expanded rapidly, which means that small and medium-sized caps and growth stocks have become the focus of current rescue funds. With active trading, the liquidity of the CSI 500 and CSI 1000 has improved significantly, and the liquidity of the CSI 2000 has also improved after midday. However, the liquidity issues of the smallest micro-cap stocks by market capitalization have not improved significantly.
In addition, the A** field has been at an extremely low level, and the market is rising. After a large number of events in the early stage, the A** field has been in a relatively underestimated state. According to the analysis of multiple indicators, such as price-earnings ratio, price-to-book ratio, implied risk premium, market breakage rate, investor sentiment index, etc., the current A** market has been at an extreme low level. In this context, the market's over-falling *** is expected to continue, and it is expected that all A-shares are expected to return to around the 20th**. However, the premise is that the bailout funds can continue to support the market, and the liquidity crisis of small-cap and growth stocks is resolved, and there is no longer a "negative feedback" situation.
For the sustainability and style of the market, some analysts believe that due to the excessive decline in the market in the early stage, driven by favorable policies, the over-fall is expected to continue. If there is a significant improvement in the capital side of the A** market, such as leveling ** entering the market or a large number of medium and long-term funds at the bottom**, then the market may have a months-long repair**. On this basis, if there is a strong economic policy and a significant improvement in fundamental data such as PMI and PPI, then the market is expected to end the bear market and gradually go bullish.
In the case of an improved liquidity crisis, the core varieties of the market will be the small and medium-sized caps and technology growth styles with the most liquidity discounts in the early stage. It is recommended to pay attention to electronics, military industry, communications, computers and other related industries. If the liquidity problem of small and mid-cap is not fully resolved, the market may continue to return to the ** value, dividend style for defense.
In general, the current trend of the A** field has been affected by multiple factors. Factors such as favorable policies, changes in capital and improving fundamentals may have an impact on the trend of the market. For investors, it is necessary to pay close attention to the changes in these factors in order to better grasp the opportunities and risks in the market. At the same time, it is also necessary to maintain a rational and calm attitude, and do not blindly follow the trend or over-trade, so as not to cause unnecessary losses.
Note: The data and opinions in this article are provided by the strategy team of China Securities Construction Investment and are for reference only and do not constitute investment advice.
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