The market opened low and went high throughout the day, and the GEM index led the rise.
On the disk, large financial stocks collectively strengthened, and many stocks such as Yangtze River ** and Hualin ** rose to the limit. Pharmaceutical stocks collectively **, innovative drugs led the rise, Yabao Pharmaceutical, Gan & Lee Pharmaceutical and other stocks rose to the limit. Rare earth and lithium stocks were active intraday, and China Rare Earth, Northern Rare Earth, Rongjie Shares, and Guangsheng Nonferrous Metals rose to the limit. CPO and other computing power concept stocks** rose. **In terms of the real estate sector, the adjustment was carried out, and Pudong Jinqiao and other companies fell to the limit.
In terms of sectors, innovative drugs, large ** holdings, **small metals and other sectors were among the top gainers, while ST plates, education, new urbanization, real estate and other sectors were among the top decliners. Overall, there are more than 3,800 stocks in the whole market, and more than 600 stocks in the whole market have risen by more than 9%.
As of **, the Shanghai Composite Index rose 323%, and the Shenzhen Component Index rose 622%, the GEM index rose 671%。The turnover of the Shanghai and Shenzhen stock markets today was 926.3 billion, an increase of 48.9 billion from the previous trading day. Northbound funds were net **126 throughout the day0.5 billion, of which the Shanghai Stock Connect net **601.3 billion yuan, Shenzhen Stock Connect net **659.2 billion yuan.
China's assets are large**!
Today, **! Not only A-shares have risen sharply, but Hong Kong stocks have also risen sharply.
In terms of A-shares, today's market ushered in a comprehensive surge, the ChiNext index rose by more than 6%, and the FTSE China A50 Index rose to 4%, and today's A-shares changed the trend of "earning index losses", and small and medium-cap stocks rose significantly higher than ** stocks, and the CSI 1000 Index once rose by more than 8%, the largest single-day increase in history. As of **, there are more than 3,800 stocks in the whole market***, with a median increase of 38%。
It can be seen from the trend of market funds that following the explosion of CSI 500, CSI 1000 and ChiNext ETFs yesterday afternoon, today, the CSI 300 ETF, ChiNext ETF, SSE 50 ETF and the three CSI 1000 ETFs have all increased significantly, achieving a veritable "hand in hand".
As of **, the trading volume of Huatai Pineapple CSI 300 ETF, E Fund ChiNext ETF and ChinaAMC SSE 50 ETF reached 656.3 billion yuan, 583.5 billion yuan, 556 billion yuan, the turnover of CSI 1000 ETF, GF CSI 1000 ETF and ChinaAMC CSI 1000 ETF reached 53 respectively8.9 billion yuan, 439.1 billion yuan, 426.8 billion yuan, and the total turnover of the six major ETF products was nearly 32 billion yuan.
In addition, foreign capital has also returned in a big way, and northbound funds have stepped up their efforts to sweep goods in the afternoon, with a net inflow of more than 15 billion yuan. As of **, northbound funds have a substantial net of **12.6 billion yuan today, and the single-day net ** has hit a new high since December 2023, and it has been net for 6 consecutive days.
Hong Kong stocks rose unilaterally today, with the Hang Seng Index rising more than 4% and the Hang Seng Index rising more than 65%, SenseTime-W, Hua Hong Semiconductor, SMIC, WuXi AppTec, Haier Smart Home, Longfor Group, JD.com, Alibaba, China Merchants Bank, etc. all rose sharply.
Six good things are coming!
Today's surge stems from the joint effect of many positive factors, and there are roughly six major positive benefits in summary.
The first major positive, ** Huijin expands the scope of ETF holdings.
*Huijin announced on February 6 that it fully recognizes the value of the current A** market allocation, and has recently expanded the scope of its holdings in exchange-traded open-ended index** (ETFs), and will continue to increase its holdings and expand the scale of its holdings, so as to resolutely maintain the smooth operation of the capital market.
It is worth noting that four of today's six positive benefits are from the China Securities Regulatory Commission. In recent days, the China Securities Regulatory Commission has frequently released heavy news, and has taken decisive action and responded to issues such as malicious shorting, Huijin holdings, financial integration, and the development of listed companies.
The second major positive is that yesterday evening, the China Securities Regulatory Commission said that it would severely punish the manipulation of the market and malicious shorting. Recently, the China Securities Regulatory Commission has strengthened the supervision of trading behaviors, enriched the means of clue screening, coordinated and arranged special verifications, strengthened the "penetrating" transaction monitoring, used multi-dimensional technical means to collect market intelligence, and carried out joint research and judgment with the Ministry of Public Security, and found a number of cases suspected of manipulating the market and malicious shorting. The China Securities Regulatory Commission will maintain a high-pressure posture of "zero tolerance", resolutely crack down, and let those who dare to manipulate illegally and maliciously short sellers "go bankrupt and sit in prison". Warning: Don't defy the law and take the chestnut in the fire.
The third major positive is that the China Securities Regulatory Commission responded to ** Huijin's statement that it will continue to increase the scale and intensity of its ETF holdingsSaid - at present, the valuation level of the A** field is at a historical low, and the value of medium and long-term investment is highlighted, which has been fully recognized by investment institutions, including ** Huijin Company. Firmly support ** Huijin Company to continue to increase the scale and intensity of its holdings, and will create more convenient conditions and smoother channels for its market entry operations. At the same time, we will continue to coordinate and guide various institutional investors such as public offerings, private placements, companies, social security institutions, insurance institutions, and annuities to enter the market more vigorously, encourage and support listed companies to increase their repurchase and increase their holdings, introduce more incremental funds for the A** market, and make every effort to maintain the stable operation of the market.
Fourth, it is good to further strengthen the supervision of securities lending and borrowing business. After research, the China Securities Regulatory Commission (CSRC) has decided to propose three measures to further strengthen the supervision of securities lending business: first, suspend the scale of new refinancing securities, with the balance of existing refinancing securities as the upper limit, suspend the scale of refinancing securities of new ** companies in accordance with the law, and gradually close the stock; The second is to require the company to strengthen the management of customer trading behavior, and strictly prohibit the provision of securities lending to investors who use securities lending to implement intraday rotation trading (disguised T+0 trading); Third, we will continue to strengthen supervision and law enforcement, and will crack down on illegal activities such as improper arbitrage through the use of securities lending and borrowing transactions in accordance with the law to ensure the smooth operation of securities lending and borrowing business.
The fifth major benefit, for enhancing the investment value of listed companies, the China Securities Regulatory Commission held a symposium. The meeting emphasized that to enhance the investment value of listed companies, the first is to attach great importance to enhancing the investment value of listed companies. Second, it is necessary to establish an internal long-term mechanism to enhance the investment value of listed companies, and strengthen the thinking of listed companies themselves to enhance the investment value of listed companies. The third is to make full use of the "toolbox" to enhance investment value in accordance with the law, including market tools such as share repurchases, major shareholder increases, normalized dividends, mergers and acquisitions, etc. Fourth, we will take the initiative to strengthen communication with investors and effectively improve investors' expectations.
In addition, the China Securities Regulatory Commission pointed out that the next step will be to take multiple measures to activate the M&A and restructuring market and support the implementation of excellent typical cases. The first is to improve the inclusiveness of restructuring valuations. The second is to adhere to classified supervision. The third is to study the implementation of "rapid review" for the restructuring of leading large-capitalization companies, and further optimize the "small and fast" review mechanism for restructuring. The fourth is to support the mergers and acquisitions of "two innovation" companies in the same industry or upstream and downstream, and have synergistic effects with the main business, and enhance the "hard technology" and "three innovation and four new" attributes of listed companies. Fifth, support the absorption and merger between listed companies (including those not under the same control) and further broaden diversified exit channels. At the same time, we will continue to adhere to the investor-oriented concept, strengthen supervision, prevent risks, resolutely investigate and deal with financial fraud and other illegal acts in restructuring transactions, and crack down on "shell companies" speculation and other chaos.
Sixth, when the adjustment of the two financial plans was carried out, many institutions expressed their positions.
According to Brokerage China, some leading brokerages are holding a meeting to urgently formulate and revise the business plan of the two financial institutions, involving issues such as the minimum offline adjustment, which is expected to come out soon to better maintain market stability. A small and medium-sized brokerage also said that the company actively responded to the regulatory call and has revised the terms overnight on the recent situation in the two financial markets, including the reduction of the liquidation line, etc., and the relevant plan is still subject to the company's approval.
In addition, seven companies, including Nanfang**, E Fund** and Huaxia**, announced that they would strictly implement the relevant requirements of the China Securities Regulatory Commission on securities lending business, suspend the new scale of refinancing** lending, and prudently and steadily promote the gradual completion of the scale of existing refinancing** loans to ensure the smooth operation of relevant businesses.
There is no need to be pessimistic about the medium-term of A-shares
Looking ahead, CICC believes that the accumulation of positive factors and the restoration of investor confidence may still need to be dealt with by policies
1) Compared with historical data and major global markets, the valuation level of the A** market is significantly low, and it is attractive for investment, and the forward P/E ratio of CSI 300 is only 89x, equity risk premium is higher than 1x standard deviation upward, and dividend yield is higher than 10-year Treasury yield.
2) Policies aimed at improving demand and stabilizing investor confidence are gradually exerting force, including monetary policy has begun to turn, the unexpected RRR cut has released easing signals, and the local government has intensively introduced real estate regulation policies, the China Securities Regulatory Commission has optimized the securities lending mechanism to alleviate liquidity pressure, and the State-owned Assets Supervision and Administration Commission is expected to incorporate the market value management of central state-owned enterprises into the assessment system.
On the whole, the current market valuation, transaction and other sentiment indicators are still at the bottom of the historical range, investors' willingness to enter the market is weak, and incremental funds are limited, but CICC believes that considering the recent policies to stabilize growth, stabilize the market and stabilize expectations are being introduced and implemented one after another, the positive changes in the policy will help to resolve short-term liquidity risks and boost investor confidence, and the follow-up market still has the momentum to continue to repair.
Although the market may still fluctuate in the short term due to the long holiday before and after the Spring Festival, there is no need to be overly pessimistic about the medium-term performance of A-shares. At the allocation level, in the short term, we will pay attention to the beneficiary areas in combination with policy changes, and pay attention to the combination of economic recovery and the offensive and defensive combination of dividend assets.