On February 21, A-shares opened low and moved high today, with the three major indexes all achieving gains of more than 1%. As of **, the Shanghai Composite Index has **172% to close at 297287 points; Shen Cheng refers to ** 175% at 906195 points; GEM refers to ** 128% to close at 176855 points.
On the disk, large financial stocks have sprung up, Ping An Bank and Hongta have risen to the limit, while Agricultural Bank of China and Bank of China have hit record highs. The automobile industry chain has been launched, and more than 10 shares such as Shenglong Shares, Ruima Precision, Heli Technology, and Zhongtong Bus have risen to the limit. The new quality productivity concept stocks continued to be strong, and more than 10 stocks such as Deen Seiko, Kelai Electromechanical, Jinglun Electronics, and Claus also rose to the limit. In addition, lithium mines, photovoltaic and other track stocks also showed an intraday rise, Rongjie shares, Haiyuan composite materials, Jiayu shares and other ** daily limit.
However, the CPO concept stocks have adjusted, and Zhongji Innolight fell by more than 5%. Overall, there are more ups and downs, more than 5,000 stocks with more than 100 daily limits. The half-day turnover of the Shanghai and Shenzhen stock exchanges reached 552.1 billion yuan, an increase of 67.8 billion yuan from the previous trading day. In terms of sectors, SORA concept, auto parts, building energy efficiency, automobiles and other sectors are among the top gainers, while a few sectors such as fentanyl are **.
The banking sector continued to strengthen in early trading, becoming the leading force in the market. In terms of A-shares, Ping An Bank took the lead in raising the price limit, Bank of Ningbo and Qilu Bank both rose by more than 6%, and China Merchants Bank rose by nearly 5%; In terms of Hong Kong stocks, China Merchants Bank rose by more than 6%, and Bohai Bank, Industrial and Commercial Bank of China, Bank of Communications, etc. also rose by more than 3%.
On the news side, the latest loan market ** interest rate (LPR) was released on February 20: the 1-year LPR is 345%, the same as the previous month; LPR for more than 5 years is 395%, down 025 percentage points.
China Securities Construction Investment believes that the policy mix of "1-year unchanged and 5-year downward adjustment" shows that the policy is supportive of bank interest rate spreads. This positive news has greatly alleviated the negative sentiment in the market and boosted the valuations of bank stocks, especially the performance of high-performing banks. Considering that most mortgage loans were repriced in January, and given the hedging effect of the reduction in deposit rates at the end of 2023, the impact of this 5-year LPR reduction on banks' net interest margins will be minimal. Net interest margins in the banking sector are expected to continue to narrow better in 2024 than last year.
China Merchants ** believes that the asymmetric downward adjustment of the LPR indicates that the monetary policy will increase counter-cyclical adjustment and expand the space for concessions to the real economy. The asymmetric reduction will reduce the cost of residential housing loans, help stimulate housing demand, and support the steady development of the real estate market.
To sum up, the current A** market is showing a trend of opening low and going high, and all major indices have achieved an increase of more than 1%, and the overall atmosphere of the market is optimistic. The banking sector continued to strengthen and became the leading force in the market. The asymmetric reduction of LPR has released a positive signal and has a good role in promoting both the banking industry and the real economy. Therefore, investors can pay due attention to the investment opportunities in bank stocks and related sectors under the condition of controllable risks, and grasp the investment opportunities in the market.
For the future, do you think the A** field will continue to maintain the ** momentum?