The market retaliatory rally is coming!
On the afternoon of March 16, the market reported the content of the blockbuster meeting. According to Xinhua News Agency, on March 16, the Financial Stability and Development Committee of the State Council held a special meeting to study the current economic situation and capital market issues. The meeting pointed out that with regard to macroeconomic operation, it is necessary to implement the decision-making and deployment of the party Central Committee, effectively revitalize the economy in the first quarter, take the initiative to deal with monetary policy, and maintain moderate growth in new loans. Regarding real estate enterprises, it is necessary to study and propose effective prevention and mitigation of risk response plans in a timely manner, and propose supporting measures for the transformation to a new development model. Regarding the China Stock Exchange, the regulators of China and the United States have maintained good communication, made positive progress, and are working to form a specific cooperation plan. The Chinese government continues to support all kinds of enterprises to list overseas. Regarding the governance of the platform economy, the relevant departments should improve the established plan in accordance with the principle of marketization, rule of law and internationalization, adhere to the principle of seeking progress in stability, and steadily promote and complete the rectification work of large platform companies as soon as possible through standardized, transparent and predictable supervision, and set up red and green lights to promote the stable and healthy development of the platform economy and improve international competitiveness. On the issue of the stability of Hong Kong's financial market, the regulators of the mainland and Hong Kong should strengthen communication and coordination.
After the financial commission meeting was convened, the central bank, the securities regulatory commission and the banking and insurance regulatory commission quickly held a special meeting to convey the spirit of the study and implementation of the meeting.
Stimulated by the above-mentioned heavy positives, A-shares and Hong Kong stocks have risen in a straight line. Among them, the A-share ChiNext index rose by more than 5%, and the total market value of A-shares increased by 2.9 trillion yuan. In Terms of Hong Kong stocks, the Hang Seng Index rose 9.08% and the Hang Seng Technology Index rose 22.2%, the largest one-day gain in history.
Hang Seng Technology Index rises more than 22%
Multiple star tech stocks rose more than 30%
On March 16, the main hong Kong stock index rose sharply. From the perspective of the constituent stocks of the Hang Seng Technology Index, GD-SW rose more than 48%, Bilibili-SW rose more than 40%, JD Group-SW, Ctrip Group-S rose more than 35%, Kuaishou-W, Ideal Auto-W rose more than 34%, JD Health, Xiaopeng Automobile-W, Andian-W all rose more than 32%. Platform companies such as Tencent Holdings, Alibaba, Meituan, Kuaishou, and Baidu Group rose sharply, and their market value increased by more than HK$1.4 trillion in a single day.
Image source: Wind
Wind data shows that on the 16th, the net inflow of southbound funds was HK$7.873 billion, with a total net inflow of HK$47.553 billion since March, and the inflow amount reached HK$95.971 billion during the year. On the 16th, the total market value of Hong Kong stocks increased by HK$4,114.319 billion.
On the news side, according to reports, the Hong Kong SAR government held an anti-epidemic press conference on March 16, chief executive Carrie Lam Cheng Yuet-ngor said that the international environment is complex, the financial markets in various places have been impacted, although Hong Kong as an international financial center can not stay out of the matter, but Hong Kong's financial stability and market supervision, have not been affected by recent stock market fluctuations. She stressed that Hong Kong's financial, monetary and market surveillance system remains robust.
GEM index soared more than 5%
More than 4300 individual stocks in the two cities are red
The A-share market staged a rebound, with the ChiNext index rising more than 5%, the Shenzhen Component Index rising more than 4%, and the Shanghai Composite Index rising more than 3%. The stocks in the two cities showed a general upward trend, with more than 4300 individual stocks floating red and 137 stocks rising and falling, and the market money-making effect was excellent.
In addition, various "Mao" generally rose sharply, and as of the close, the core asset index rose 4.02%.
In addition, Guizhou Moutai with a market value of 2,104.1 billion yuan rose 4.49%; Ningde Times, which had a market value of 1,172.7 billion yuan, rose 8.61%, and the stock price closed above 500 yuan at 503.10 yuan.
In terms of stock index futures, the three major futures indexes are significantly higher. According to Wenhua Financial Data, as of the close, the main contract OF IF2203 of the CSI 300-period index, the main contract of the Shanghai 50th period IH2203, and the main contract of the CSI 500th period, IC2203, rose by 3.69%, 4.11% and 2.66% respectively.
Wind data shows that as of the close, the travel index rose more than 9%, the air transport, airport index rose more than 8%, and online travel rose nearly 8%.
In terms of individual stocks, only in terms of tourism travel, Happy Blue Ocean, SSAW Boutique Hotel 20CM up and down, Jinyi Film and Television, Guilin Tourism, Zhongxin Tourism, Sante Ropeway, Changbai Mountain, Zhangjiajie, Xinhualian and other more than 20 stocks up and down. China Southern Airlines, Air China and China Eastern Airlines all rose and fell.
In addition, the concept of non-bank finance was threatened, and the Shenwan first-class non-bank financial index rose by 5.57%. Among them, Jiai Technology rose more than 16%, Oriental Wealth rose more than 10%, Xiangyi Rongtong, Huaxin Shares, Hualin Securities, BOC Securities, Xinli Financial, Guosheng Financial Holdings, and GF Securities all rose to a limit, Orient Securities rose more than 8%, and CICC rose more than 7%.
The industrial chain of the Ningde era also shined, and the individual stocks were middle-aged, dingsheng new materials, and Mindong power rose and fell.
Recently, the concept of electronic ID cards in the popular concept sector continued to be strong, and as of the close, the electronic ID card index rose more than 4%.
Interpretation of the main points of the financial commission meeting
According to Xinhua News Agency, on March 16, the Financial Stability and Development Committee of the State Council held a special meeting to study the current economic situation and capital market issues.
The meeting responded positively to a series of topics of market concern, such as monetary policy regulation, rectification of large platform companies, real estate market, Chinese stocks, Sino-US regulatory cooperation, Hong Kong market stability, and financial policy formulation.
Priority 1: Proactive response to monetary policy
Institutions: Unprecedented determination to stabilize growth
Regarding macroeconomic operation, the meeting of the Financial Commission stressed that it is necessary to implement the decision-making and deployment of the Party Central Committee, effectively revitalize the economy in the first quarter, take the initiative to deal with monetary policy, and maintain moderate growth in new loans.
Under the background of the "opening of the door" of the economy, the expectations of some market participants for the policy of stabilizing growth have been shaken. "The Meeting of the Financial Commission clearly pointed out that it is necessary to 'effectively reinvigorate the economy in the first quarter', which means that in the context of the impact of the new crown pneumonia epidemic, the stabilization of growth in the later stage is not bad." Zheng Houcheng, director of the Yingda Securities Research Institute, said.
"A series of statements by the Financial Commission on 'effectively reinvigorating the economy in the first quarter' are inspiring, indicating that the determination to stabilize growth is unprecedented. Policies must have a sense of urgency to accelerate their efforts. Only by stabilizing the expectations of economic growth can we stabilize the expectations of the profit growth of listed companies. Wang Sheng, chief strategist of Shenwan Hongyuan Securities, said.
"We should use a variety of monetary policy tools such as RRR cuts and interest rate cuts in a timely manner to make precise efforts in the front." At the same time, more structural monetary policy tools should be used to increase support for key areas and weak links such as scientific and technological innovation, small and micro enterprises, green development, and rural revitalization. Of course, we will further dredge the transmission mechanism of monetary policy, increase positive incentives for financial institutions, and inject liquidity into the real economy more efficiently and accurately. Dong Ximiao, chief researcher of CmLCC Finance, believes.
Priority 2: Progress in U.S.-China regulatory coordination
Institutions: Chinese stocks are expected to stabilize
Regarding the China Stock Exchange, the meeting pointed out that at present, the regulatory authorities of China and the United States have maintained good communication, made positive progress, and are working to form a specific cooperation plan. The Chinese government continues to support all kinds of enterprises to list overseas.
Recently, the U.S. Securities and Exchange Commission (SEC) announced that five listed companies in the United States have been identified as "relevant issuers" with delisting risks under the Foreign Company Accountability Act. The head of the relevant department of the CSRC pointed out in response to a reporter's question on the 11th, "We have always adhered to the spirit of openness and cooperation, and are willing to solve the problem of inspection and investigation of relevant firms by the US regulatory authorities through regulatory cooperation, which is also in line with international practice." ”
"Recently, the China Securities Regulatory Commission and the Treasury Department have continued to engage in communication and dialogue with the U.S. Public Corporation Accounting Oversight Board (PCAOB) and have made positive progress. We believe that through joint efforts, the two sides will be able to make cooperation arrangements that meet the legal provisions and regulatory requirements of the two countries as soon as possible, jointly protect the legitimate rights and interests of global investors, and promote the healthy and stable development of the markets of the two countries. The above-mentioned person in charge further said.
Wang Sheng believes that the communication between the regulators of China and the United States is worth looking forward to. "Although the recent correction in some stocks has been more obvious, fundamentals are still the most important consideration. After experiencing supervision and regulation, the Chinese stock market is also expected to gradually stabilize. He said.
Key point three: red light, green light should be set
Institutions: Positive for platform companies
Regarding the governance of the platform economy, the meeting pointed out that the relevant departments should improve the established plan in accordance with the principle of marketization, rule of law and internationalization, adhere to the principle of seeking progress in stability, and steadily promote and complete the rectification work of large platform companies as soon as possible through standardized, transparent and predictable supervision, and set up red and green lights to promote the stable and healthy development of the platform economy and improve international competitiveness.
Wang Sheng believes that the financial commission's statement on "steadily advancing and completing the rectification work of large platform companies as soon as possible" has allowed the market to see the signal that the platform economic development policy can be implemented and completed as soon as possible, and the follow-up policy is worthy of attention. This move also gives foreign institutional investors a "reassurance pill", which helps stabilize expectations and boost confidence.
Wang Jingwen, director of the Macro Research Center of the Research Institute of China Minsheng Bank, also said that the requirement of "steadily advancing and completing the rectification work of large platform companies as soon as possible" is conducive to stabilizing the confidence and expectations of relevant enterprises; the requirement of "promoting the stable and healthy development of the platform economy" will help to play an active role in optimizing the allocation of resources, promoting scientific and technological progress, facilitating people's lives, and participating in international cooperation and competition. "Overall, it is good for platform companies." Wang Jingwen commented.
Priority 4: Strengthen regulatory collaboration between the Mainland and Hong Kong
Institutions: Connectivity and cooperation have been further deepened
On the issue of the stability of Hong Kong's financial market, the meeting pointed out that the regulators of the mainland and Hong Kong should strengthen communication and cooperation.
Fang Xinghai, vice chairman of the China Securities Regulatory Commission, said at the 15th Asian Financial Forum in 2022 that the China Securities Regulatory Commission will continue to support Hong Kong in consolidating and enhancing its status as an international financial center, and further promote the formation of a good situation in which the capital markets of the two places complement each other and develop in a coordinated manner.
In Wang Sheng's view, the role of the Hong Kong market is to help domestic investors better participate in global wealth management and investment under the current foreign exchange management model, and share the dividends of China's innovation. At the same time, the all-round and multi-level interconnection and cooperation between the mainland and Hong Kong's capital markets will be further deepened, which will also help residents to allocate global assets. In addition, Hong Kong's role as a link and "outpost" connecting Chinese mainland and the international financial market will be further strengthened, and Hong Kong's service capacity and attractiveness to international capital will be further enhanced.
Focus five: Prudently introduce contractionary policies
Institutions: Stabilizing the market will form a synergy
The meeting also stressed that relevant departments should earnestly assume their responsibilities, actively introduce policies favorable to the market, and prudently introduce contractionary policies. Respond to hot issues of market concern in a timely manner. Policies that have a significant impact on the capital market should be coordinated with the financial management authorities in advance to maintain the stability and consistency of policy expectations. The Financial Commission of the State Council will, in accordance with the requirements of the Party Central Committee and the State Council, increase coordination and communication, and hold it accountable when necessary. Financial institutions must proceed from the overall situation and firmly support the development of the real economy.
"The statement of the Financial Commission fully shows that the capital market 'leads the whole body'. When various ministries and commissions issue policies, if there is a certain correlation with listed companies, etc., they should fully communicate in order to make things more perfect. Wang Sheng said.
It is worth mentioning that Yi Huiman, chairman of the CSRC, recently talked about highlighting the "three stability": First, highlighting the "stability" of the market. The CSRC will take comprehensive measures with relevant departments, take multiple measures at the same time to promote the smooth operation of the market, and resolutely prevent large and large numbers of people from going up and down, rushing up and down. The second is to highlight the "stability" of policies, steadily and prudently assess the conditions and timing of the introduction of major policies and measures in the capital market, take the initiative to strengthen communication with the market, and adhere to the principle of establishing first and then breaking, and fighting steadily and steadily. The third is to highlight the expected "stability", actively strengthen policy coordination and information sharing with relevant departments, introduce more policies and measures conducive to stable growth and stable expectations, and prudently introduce policies with shrinkage effects to prevent individual correctness and synthetic fallacies.
Priority 6: Long-term institutional investors are welcome to increase their shareholding ratio
Institution: Welcome to the warehouse!
The meeting stressed that long-term institutional investors are welcome to increase their shareholding ratios. All quarters must profoundly understand the great significance of the "two establishments," resolutely achieve the "two safeguards," maintain the long-term trend of China's healthy economic development, and jointly safeguard the stable development of the capital market.
Institutions are generally optimistic about the capital of A-shares in 2022, and it is expected that the institutionalization trend and the market factors of residents' asset allocation and equity are strong support for the stock market.
CITIC Securities expects that the inflow of public funds into the A-share market in 2022 may reach 850 billion yuan. CICC is more optimistic, and it is expected that the contribution of equity and hybrid public funds to the incremental funds of A-shares in 2022 may be 0.9 trillion yuan to 1.2 trillion yuan. China Merchants Securities expects about 1.2 trillion yuan of public funds to increase in size in 2022.
In terms of encouraging long-term institutional investors to enter the market, Wang Sheng suggested that medium- and long-term funds such as the third pillar pension should be supported to enter the market. "Ministries and commissions need to make comprehensive efforts and work together to implement policies, such as encouraging long-term investment through preferential tax deferral policies."
Focus 7:
About real estate: The study proposes a plan to prevent and resolve risks
Regarding real estate enterprises, the meeting stressed that timely research and proposal of effective prevention and mitigation of risk response plans, and put forward supporting measures for the transformation to a new development model.
Yang Chang, head of the policy group and chief analyst of Zhongtai Securities Research Institute, said that real estate is a key industrial sector with a large macroeconomic impact weight, especially in the context of weak medium- and long-term loan performance of households in February, it is necessary to take effective measures to prevent and resolve risks and provide support for stable growth.
One line and two will collectively speak out
After the meeting of the Financial Commission was convened, the central bank, the Securities Regulatory Commission and the Banking and Insurance Regulatory Commission quickly held a special meeting to convey the spirit of the meeting of the Financial Commission of the State Council.
The CSRC pointed out that since the beginning of this year, the mainland's national economy has continued to recover, the main macroeconomic indicators have been operating in a reasonable range, the stable growth policy in all aspects has continued to exert force, the performance of listed companies has been stable and good, the smooth operation of the capital market has a solid foundation, and the short-term fluctuations in the market have not and will not change the long-term healthy development trend.
The CSRC said that under the unified command and coordination of the Financial Commission of the State Council, it will conscientiously implement the deployment of the Central Economic Work Conference and the national "two sessions", adhere to deepening reform and expanding opening up, adhere to the principle of marketization and rule of law, take the initiative to strengthen communication and coordination with macroeconomic management departments and industry authorities, maintain the stability and consistency of policy expectations, and help stabilize the macroeconomic market and financial operations. Implement the tasks of the government work report, solidly promote the comprehensive implementation of the reform of the stock issuance and registration system, improve the bond financing support mechanism for private enterprises, and promote the development of venture capital. Give play to the role of the endogenous stability mechanism of the market, vigorously promote the improvement of the quality of listed companies, encourage listed companies to increase their holdings and repurchase efforts, and guide fund companies to purchase shares. Improve the institutional mechanisms conducive to long-term institutional investors participating in the capital market, increase the cultivation of various institutional investors such as public funds, and encourage long-term investment and value investment. Further promote high-level opening up, strengthen pragmatic cooperation between the mainland and Hong Kong's capital market, and jointly safeguard the healthy and stable development of the Hong Kong market. Continue to strengthen communication with US regulators and strive to reach an agreement on Sino-US audit and regulatory cooperation as soon as possible. We should pay close attention to promoting the implementation of new regulations on the supervision of overseas listing of enterprises, support all kinds of qualified enterprises to list overseas, and maintain smooth overseas listing channels. Continue to support the rational financing of the real economy, actively cooperate with relevant departments to effectively resolve the risks of real estate enterprises, promote the healthy development of platform economy norms, and improve international competitiveness.
The CSRC said that the next step will be to effectively improve the political position in accordance with the deployment requirements of the Financial Commission of the State Council, closely follow the theme of promoting high-quality development, further deepen and refine various work measures, so as to achieve results and make every effort to maintain the smooth operation of the capital market.
At noon on March 16, Yi Gang, president of the People's Bank of China and director of the Office of the Financial Commission, presided over a meeting of cadres at and above the department level. The meeting demanded that monetary policy should be actively responded to, new loans should maintain moderate growth, vigorously support small and medium-sized enterprises, firmly support the development of the real economy, and keep the economy operating in a reasonable range. Adhere to steady progress, prevent and resolve real estate market risks, steadily promote and complete the rectification of large platform companies as soon as possible, promote the healthy and stable development of the platform economy, and improve international competitiveness. Further strengthen interdepartmental policy coordination, respond to hot issues of market concern in a timely manner, stabilize expectations, boost confidence, maintain the stable and healthy development of China's economy, and jointly maintain the stable development of the capital market.
Guo Shuqing, secretary of the party committee and chairman of the Banking and Insurance Regulatory Commission, presided over a special meeting to convey the spirit of the meeting of the Financial Commission of the State Council and make arrangements for the next step of banking and insurance industry supervision. The meeting demanded that we should actively support the smooth operation of the capital market. Actively introduce policies that are beneficial to the market. It is necessary to vigorously support direct financing and promote the optimization of financing structure. Guide trust, wealth management and insurance companies to establish long-term investment concepts, carry out real professional investment and value investment, and become the backbone of promoting the development of the capital market and maintaining the stability of the capital market. It is necessary to give full play to the advantages of long-term investment of insurance funds and guide insurance institutions to allocate more funds to equity assets. Support insurance companies to increase capital market investment, especially the stock investment of high-quality listed companies, through various channels such as direct investment, entrusted investment, and public funds. It is necessary to increase the issuance of equity asset management products, support wealth management companies to increase the proportion of equity products, and insurance institutions to issue portfolio products. It is necessary to respond to the hot issues of market concern in a timely manner and stabilize market expectations. It is necessary to proactively strengthen communication and coordination with relevant departments and form a joint force to maintain the stability and consistency of policy expectations.
Source: China Securities News