Economist Xia Chun: Investment opportunities in the Year of the Tiger from the Winter Olympics

This article is written by Yinke Institute of Finance

【Today's Quick Review】

At the end of the Spring Festival holiday, the stunning opening of the Beijing Winter Olympics quickly dominated the screen, Chinese netizens lamented the Chinese romantic opening ceremony design, and foreign netizens were also curious about the various "black technologies" of the venue.

Last night's women's football team won the Asian Cup for the second time in 14 years, which pushed the attention of the whole people to sports events to a climax.

At a special time when the global epidemic is still serious, the Beijing Winter Olympics is undoubtedly a very successful top sports event. As the first city to successfully host the "Double Olympic Games", the significance of the Beijing Winter Olympics to China is naturally not only at the level of sports events.

We often hear about the "Olympic economy" once, and for China, a fast-growing sports country, it is not enough to talk about the Olympic economy alone, we see more of the transformation of consumption and investment concepts promoted by top events, and the investment opportunities such as "great health", "national tide" and green economy.

First of all, China's ice and snow sports and consumption development is relatively backward, Beijing for the first time to host the Winter Olympic Games, will directly fill the gap in the ice and snow industry, driving the national ice and snow economy.

Everyone may feel more or less that there are more and more friends who love skiing, more and more skiing venues around Beijing, and the quality of the venues has also been significantly improved. According to statistics, the number of ice and snow tourists on the mainland will reach 230 million from 2020 to 2021.

Without the impact of the epidemic, it is expected that ice and snow consumption will have a chance to usher in a major outbreak next winter. Industries such as snow and ice equipment, artificial snow technology, stadium construction, and ski training will directly benefit.

Secondly, in recent years, the concept of "national tide" has been deeply rooted in the hearts of the people, which is also largely due to the pulling effect of sports events and the atmosphere of national fitness.

It is estimated that the total amount of national sports consumption at present has a scale of about 2 trillion yuan, of which more than 70% is used for the consumption of sporting goods, accompanied by the rise of national sports brands such as Li Ning, Anta and Xtep.

In the Overall Poor Performance of the Hong Kong Stock Market last year, "Guochao" was also one of the top performers, and many individual stocks were included in the Hang Seng Index last year.

This Winter Olympics has also seen the presence of many "national tide" brands, and we expect that the investment opportunities related to "national tide" will remain one of the tracks on the cusp in the next few years.

There are currently more than 50 listed companies in the A-share market, assisting in the work of the Winter Olympic Games, including venue construction, technical support, transportation facilities, licensed merchandise sales, sponsorship and supply services.

The Hong Kong stock market is also worth noting some high-quality investment targets with a wider layout of "big sports" and "big health".

In addition, the opening ceremony of the Winter Olympic Games and the Winter Olympic Village saw low-carbon and intelligent design details everywhere, providing a good demonstration for the transformation of various industries to green economy and intelligence.

This is also bound to guide the capital to lay out investment opportunities in the green economy such as artificial intelligence, robotics, high-end manufacturing, and hydrogen energy, and related industries have the potential to become the "core assets" of a new generation of China.

【Market Review】

The NASDAQ retracted its previous session's losses, the S&P and Dow stopped falling, the Dow was close to flattening, and the S&P rose slightly.

Big tech stocks edged higher, with Amazon rebounding sharply to close up 13 percent after plunging nearly 8 percent in the previous session. Netflix and Facebook have both stabilized after the big fall.

Despite the performance period, companies with trillion-dollar market capitalizations like this have gone up and down in the past week, which is rare in the U.S. stock market. At the time of the tightening of the capital level, the reduction of opponents has caused huge market volatility.

The oil and gas sector is still strong, ConocoPhillips, ConocoPhillips is about to reach a new high of more than 1%; affected by global interest rate hikes, banks continue to rise, especially in the European banking sector, Deutsche Bank, which was once in deep difficulties, rose more than 16% last week, and HSBC has risen nearly 10% in the past two weeks.

Hong Kong stocks opened the door on the first trading day of the Year of the Tiger, with the Hang Seng Index rising 770 points and the automotive, catering and property sectors leading the gains. Ideal and Xiaopeng Motors rose more than 11%. Local bank stocks in Hong Kong exploded, with BOCHK, Standard Chartered and Hang Seng all up more than 3.4%.

The U.S. Department of Labor released non-farm payrolls data this week that exceeded expectations, with a January non-farm payrolls figure of 467,000 people, almost 4 times as expected, and the job market returned strong.

January CPI rose 7.3% year-on-year, the largest increase since 1982, the current economic recovery is mainly facing the risk of price inflation, the current results have been in line with the conditions of the Fed interest rate hike, the Fed may raise interest rates at every interest rate meeting after March, the difficulty lies in the tightening speed of judgment, this year's investment in U.S. stocks friends or more to trade macro policy judgment.

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