China Fund News Amman
A-shares bottomed out and rebounded!
On the morning of April 18, after the three major A-share stock indexes were weakly sorted out, the Shanghai Composite Index took the lead in turning red under the protection of banks and brokers. Approaching around 10 o'clock, with the good news of the auto sector, the GEM index rose and turned red, falling 1.7% in early trading;
Let's take a look at the intraday hot spots:
China CITIC Bank once again rose the limit
Yesterday, there was a rare scene in A-shares, the end of the bank stocks rose across the board, in a large number of buy orders "siege" under the CITIC Bank closed the price limit, Bank of China, Agricultural Bank of China both hit a record high, Bank of Communications hit a new high in more than 16 years, China Merchants Bank hit a new high in nearly 7 months.
In the morning of April 18, funds continued to chase bank stocks, and China CITIC Bank once again rose the limit.
Bank of China, Agricultural Bank of China, and China Construction Bank all hit record highs, and Industrial and Commercial Bank of China is only one step away from the record high.
Wanlian Securities released a research report pointing out that from a long-term perspective, the overall profit growth of the banking industry may have entered the bottom range, and the stability of earnings will gradually be reflected. In addition, from the perspective of dividends, the increase in the dividend rate is conducive to the improvement of the valuation of bank stocks. Consider the current dividend yield of bank stocks as well as the valuation level. The short-term defensive attributes of the plate are still relatively obvious. The subsequent gradual recovery of the economy and the improvement of credit risk may bring a new round of market catalyst.
According to the research report of Huatai Securities, since the beginning of the year, the banking sector has been more prominent than the CSI 300, and the regional banks with high dividends and stable operation have led the gains. The market is highly concerned about the performance of banks' dividend attributes and asset quality in key areas, and although some high-quality banks are under pressure in the short term, the increase in dividend ratio has effectively boosted market sentiment.
Cinda Securities said in the research report that in 2023, large state-owned banks will pay dividends of 413.3 billion yuan, and many banks said that the dividend rate is guaranteed, and the dividend income of the current allocation of bank stocks is stable.
Some industry insiders expect that after Central Huijin increased its holdings in the four major banks, the banking sector will be injected with a "shot in the arm". Previously, Bank of China, Agricultural Bank of China, Industrial and Commercial Bank of China, and China Construction Bank collectively issued an announcement on April 12, disclosing the implementation of Central Huijin's shareholding increase plan. According to the disclosure, in the past six months, Central Huijin has increased its holdings of A-shares of four major state-owned banks by a total of 1.089 billion shares.
Intraday bursts
The auto sector was volatile and strengthened
On the morning of April 18, after the opening of the A-share automobile sector fell slightly, it fluctuated and strengthened at about 10 o'clock, with the price limit of King Long Automobile, BAIC Blue Valley, Cialis, Yaxing Bus, Dongfeng Motor, Jianghuai Automobile and so on.
The auto parts sector also rose like a rainbow.
On the news side, the Information Office of the State Council introduced at a press conference on the development of industry and information technology in the first quarter of 2024 held this morning that the added value of industrial enterprises above designated size increased by 6.1% year-on-year in the first quarter of this year, an increase of 1.5 percentage points over last year. The growth of key industries such as electronics, chemicals, and automobiles has played a significant role.
The industrial economy is running smoothly and improving, and the efficiency of enterprises continues to recover. In the first two months, the profits of industrial enterprises above designated size increased by 10.2 percent year-on-year, and have continued to grow since August last year. In addition, the market is expected to improve in the first quarter, with industrial investment increasing by 13.4 percent, the production of small and medium-sized enterprises above designated size accelerating, and the added value increasing by 7.4 percent year-on-year.
Thunder in the middle of the night
High-tech development is a word drop limit
On April 18, the high-tech development of computing power leasing big bull stocks fell to the limit.
On the news side, on the evening of April 17, the company announced that it failed to reach an agreement with some counterparties on the acquisition of 70% of the shares of Sichuan Huakun Zhenyu Intelligent Technology Co., Ltd., and the company is negotiating with the counterparty on whether to terminate the transaction. It is expected that the transaction will not be able to proceed with the current plan, and whether to change the plan or terminate the transaction will be announced on April 19, 2024 in accordance with relevant regulations.
On September 26, 2023, High-tech Development announced that it is ready to enter the AI computing power market and plans to issue shares to purchase the control of Huakun Zhenyu. After the resumption of trading, the stock price responded to the 11 price limits, and the share price of high-tech development once soared nearly 5 times.
It is worth noting that since the announcement of the acquisition, the number of shareholders of Hi-tech Development has increased dramatically, from less than 20,000 to nearly 100,000.
Editor: Huang Mei
Review: Muyu