Today (April 18, 2024), the trend of A-shares was volatile, and the three major indexes were mixed. The Shanghai Composite Index once stood above 3,100 points during the session, then retreated, and finally closed up slightly by 0.09%. The total full-day turnover of the two cities was 949.623 billion yuan, an increase of 31.153 billion yuan from the previous day.
On the disk, non-ferrous metals went on the offensive again, with the on-site price of the non-ferrous leading ETF (159876) rising 2.19%; the on-site price of the leading consumer ETF (516130) closing up 1.06% and the on-site price of the food ETF (515710) closing up 0.47%; the on-site price of the bank ETF (512800) closing up 0.83% and the on-site price of the brokerage ETF (512000) closing up 0.76%.
Image source: Wind
A50 core assets continued to be hot, A50 ETF Huabao (159596) won four consecutive yangs on the daily line, with a surge in trading volume, with a full-day turnover of 306 million yuan, an increase of more than 5% from yesterday, and a turnover rate of 22.38%, ranking among the top 3 of the same kind!
On the news side, yesterday afternoon, the National Development and Reform Commission made a heavy statement. The leaders of the National Development and Reform Commission said that they will intensify the implementation of macro policies, make every effort to consolidate and enhance the positive trend of economic recovery, and promote the high-quality completion of the annual economic and social development goals and tasks.
Looking ahead, Everbright Securities said that due to the impact of the introduction of the new "National Nine Measures", the current investors' expectations for stabilizing the market are strong, which will form a strong support for the market. In addition, the four major banks of China Agriculture, Industry and Construction recently announced the increase in holdings of Central Huijin, which will also help stabilize the market and enhance confidence. As a result, the market performance is likely to be relatively stable in mid-to-late April.
Today, we will focus on the trading and fundamentals of the three sectors such as non-ferrous faucets, big finance, and A50
1. Non-ferrous metals continue to soar! Tengyuan cobalt performance after the closure of the limit, lithium battery upstream materials strengthened across the board, non-ferrous leading ETF (159876) rose 2.19%!
Yesterday, Tengyuan Cobalt disclosed that the net profit attributable to the parent company in the first quarter increased by 1705.74%, exceeding market expectations! Today, Tengyuan Cobalt closed the board, and the upstream of lithium battery strengthened across the board, with Hanrui Cobalt rising by more than 12% and Huayou Cobalt rising by nearly 5%. The copper industry also performed well, with Western Mining and Jiangxi Copper rising more than 5%. It is worth noting that historically, copper rallies have often coincided with bull markets in commodities.
Image source: Wind
In terms of capital, the non-ferrous metal sector was favored by the main funds, attracting 2.677 billion yuan throughout the day, ranking among the top 2 of the 31 Shenwan first-class industries.
Image source: Wind
Non-ferrous metals industry leader ETF (159876) rose today, the high level of the day, as of the close, the price rose 2.19%, the market price frequently appeared in the premium range, the closing premium rate reached 0.28%. According to data from the Shanghai Stock Exchange, the non-ferrous leading ETF (159876) attracted 1.37 million yuan yesterday, with a total of 13.67 million yuan in the past 10 trading days.
Image source: Wind
Focusing on the subdivision track, today's cobalt and copper are among the top gainers, and the news is on:
1. In terms of cobalt, yesterday, Tengyuan Cobalt disclosed that it achieved operating income of 1.515 billion yuan in the first quarter, a year-on-year increase of 38.12%, and a net profit attributable to the parent company of 144 million yuan, a year-on-year increase of 1705.74%. Boosted by the news, Tengyuan Cobalt rose to the limit, and Hanrui Cobalt and Huayou Cobalt led the non-ferrous metal sector.
2. In terms of copper, internationally, recently, the United Kingdom and the United States have increased restrictions on Russian metal trading, which may lead to a tightening of copper supply, and the prices of Shanghai copper and international copper main contracts have risen. CITIC Securities said that under the expectation of continued tightening of the mine end and the reduction of production at the smelting end, and the approaching time point of the active replenishment cycle at home and abroad, the copper supply pattern may turn into a shortage. In terms of metal properties, copper's trading logic transitioned from previous interest rate cut expectations to inflation expectations.
Market analysts said that non-ferrous metals, as a kind of bulk commodities, have a low correlation with stocks and bonds. According to the research report of Huabao Securities, the correlation between COMEX gold and the Shanghai Index is only 0.02, and the correlation with the CSI convertible bonds is only -0.01, which means that if stocks or bonds fall, non-ferrous metals will not fall together, putting "eggs in multiple baskets", or "the east is not bright and the west is bright", making the portfolio more stable.
According to public information, according to the caliber of Shenwan's third-level industry, as of April 17, among the CSI non-ferrous metals index tracked by the non-ferrous leading ETF (159876), copper, aluminum, gold, lithium, and rare earth are the top five heavy industries, accounting for 23.8%, 16.4%, 14.6%, 9.3%, and 7.2% respectively, accounting for more than 70% in total. It is expected to benefit from the current round of gold rally, and is also expected to benefit from the recent commodity rally.
Data and chart sources: Wind, Shanghai and Shenzhen Stock Exchanges, Huabao Fund, etc
Bank ETF (512800) bravely hit a new high, and brokerage ETF (512000) is strong to attract gold!
Today's market rose and fell, the Shanghai Composite Index once broke through 3100 points in early trading, only one step away from the high point of the year, and the big financial sector went up strongly, becoming an important force supporting the index upward. Following yesterday's daily limit, China CITIC Bank tried to hit a new high in the intraday session, and closed up more than 9%; the four major state-owned banks except the Industrial and Commercial Bank of China all continued to hit a record high; Guosheng Financial Holding also touched the board in the intraday, closing up more than 7%, Huaxin shares, Guolian Securities, Hualin Securities, etc. followed the rise.
Chart: The top 5 constituent stocks of the CSI Bank Index rose to gain
Chart: The top 5 constituent stocks of the CSI All-Index Securities Company Index rose to gain
Image source: Wind
The top ETFs in the banking and brokerage sectors - bank ETF (512800) and brokerage ETF (512000) both rose more than 2% on the market, closing up 0.83% and 0.76% respectively, and increasing by 26% and 24% month-on-month. It is worth noting that the bank ETF (512800) won the daily line for 4 consecutive days, standing above all moving averages, and the market price continued to hit a new high in March 2022.
Image Credit: Snowball
Since the beginning of this year, the banking sector has continued to strengthen, and in the process of continuous adjustment of the macro environment and corporate earnings forecasts, the high-dividend strategy has received continuous attention from the market, among which the decline in long-term interest rates is an important factor driving the price performance of high-dividend assets. The high dividend yield and extremely low valuation of bank stocks have become the preferred choice for funds, coupled with the rising demand for market defense, which has boosted the market performance of the banking sector.
In 2023, the dividend ratio of the six major state-owned banks will reach 30% or more, with a total dividend of 413.4 billion yuan, a new high.
For the brokerage industry, the industry pattern is expected to accelerate to the head concentration, and small and medium-sized brokerages are focusing on differentiated operations, and the industry as a whole is moving towards high-quality development.
At present, the valuation of the banking sector and the brokerage sector are at a historical low, and the latest price-to-book ratios of the underlying indices of the bank ETF (512800) and brokerage ETF (512000) are 0.59 times and 1.15 times respectively, which are located at the 18.3% and 0.39% quantile in the past 10 years, with a high margin of safety.
In the context of the "special valuation" and the reform of state-owned enterprises, the market of the financial sector may be further deduced, and there are already funds to take advantage of the situation to actively deploy. According to data from the Shanghai Stock Exchange, when the bank ETF (512800) rose sharply yesterday, it had a net inflow of 44.7 million yuan, showing confidence in the market outlook. Brokerage ETF (512000) has also received funds to increase its position for 4 consecutive days, with a total net inflow of 241 million yuan.
Image source: Wind
The Bank ETF (512800) passively tracks the CSI Bank Index, with 42 listed banks in the A-share market as its constituent stocks, and nearly one-third of its positions are deployed in large state-owned banks such as Industrial and Commercial Bank of China, Bank of China, and Postal Savings Bank of China, to capture the opportunity of "high dividends".
Brokerage ETF (512000) tracks the CSI All-Index Securities Company Index, including 50 listed brokerage stocks with one click, of which nearly 6 percent of the positions are concentrated in the top ten leading brokerages, and the leading positions of "big asset management" + "big investment banks" are gathered; the other 4 percent of the positions take into account the high flexibility of the performance of small and medium-sized brokerages, absorbing the characteristics of small and medium-sized brokerages with high explosive phases, and is an efficient investment tool that concentrates on the layout of head brokerages and takes into account small and medium-sized brokerages at the same time.
A50 ETF Huabao (159596) trading is hot, soaring to 22.38%, and the transaction volume surged by more than 5%!
The A50 ETF, which has attracted much attention since the beginning of the year, continues to be hot! Today, the CSI A50 Index is volatile, and the price of A50ETF Huabao (159596) has an amplitude of nearly 2%, and the trading is extremely hot, with a turnover rate of 22.38%, ranking among the TOP3 of the same kind! The trading volume of 306 million yuan throughout the day is more than 5% higher than yesterday!
Image source: Wind
It is worth noting that since April 15, A50 ETF Huabao (159596) has been officially included in the margin trading target, providing investors with more strategic tools to participate in core asset investment. With the intervention of leveraged funds, the liquidity of A50 ETF Huabao (159596) is expected to further increase.
In addition, according to the announcement on the official website of Huabao Fund, the A50ETF Huabao Feeder Fund (referred to as "Huabao CSI A50 ETF Initiation Connection", Class A code 021216, Class C code 021217) has been officially established on April 17 and will be open for subscription soon. The follow-up A50 ETF Huabao (159596) is expected to receive more capital and liquidity support.
Specifically, let's look at today's market. A50ETF Huabao (159596) rose 45 degrees in early trading, and the intraday price once rose to 1.003 yuan, and then fluctuated and fell back in the afternoon, and finally closed up slightly, but the daily line successfully won four consecutive yangs! 50 constituent stocks were mixed, Huayou Cobalt rose 4.99% to the top, Proya, Fuyao Glass, and Zijin Mining rose more than 2% to the top;
Image source: Wind
Yesterday afternoon, Liu Sushe, deputy director of the National Development and Reform Commission, said at the press conference that it will intensify the implementation of macroeconomic policies, make every effort to consolidate and enhance the positive trend of economic recovery, and promote the high-quality completion of the annual economic and social development goals and tasks.
There are also good news from the periphery. According to external sources, international asset management giant Ashmore is reducing its position in Indian equities and making China its top investment choice for emerging market funds. The company believes that the Indian stock market is overhyped and overcrowded, while the Chinese stock market is expected to rebound.
In addition, Bank of America's monthly fund manager survey in April showed that investors' confidence in Chinese equities improved slightly, and their allocation to Chinese equities edged up for the second consecutive month. It is understood that the survey conducted an investigation of 224 asset management companies from April 5 to 11, and these institutions managed assets amounting to 638 billion US dollars (about 4.6 trillion yuan).
UBS Securities China equity strategy analysts believe that a new round of rebound may be brewing. At the beginning of the new year, the trend of the A-share market was weaker than expected. As government departments have spoken out intensively to demonstrate their determination to safeguard the capital market, market liquidity risks have been alleviated, and investor sentiment has stabilized and rebounded. In his view, the upward revision of earnings expectations and favorable policies on the high-quality development of the capital market will promote the A-share market to gain a new round of momentum in the second quarter.
The economic rebound is expected to be strong, which will help the market continue to improve, and the bullish funds will accelerate the pace of layout. In recent days, the share of A-share core broad-based A50 ETF Huabao (159596) has continued to rise, data shows that as of April 18, the ETF share has increased for 8 consecutive trading days, calculated according to the average trading price of the range, a total of 141 million yuan in the past 8 days. Positive buying funds reflect the market's confidence in the future of A-share core assets.
Image source: Wind
According to public information, the CSI A50 Index passively tracked by A50 ETF Huabao (159596) is the first A50 index compiled by a domestic index company in A-shares, which has unique strategic significance and compilation advantages:
(1) New benchmark for core assets: CSI A50 gathers the most representative leading companies in various industries and focuses on A-share benchmark core assets.
(2) Balanced industry distribution: The 50 constituent stocks are from 50 CSI third-level industries, taking into account both traditional industries and new economy industries.
(3) In line with the preference of foreign investors: the constituent stocks are all subject to Stock Connect, and the 50 constituent stocks together account for 40% of the market value of the A-share market held by northbound funds.
Source: Shanghai and Shenzhen Stock Exchanges, Xueqiu, Wind, etc., as of April 18, 2024.
Risk Warning: When participating in margin trading, investors are advised to carefully read the relevant business rules, business contracts and risk disclosures for margin trading, and prudently assess their own economic status and financial ability to avoid unbearable losses due to participating in margin trading. Nonferrous Metals ETF passively tracks CSI Nonferrous Metals Index with a base date of 2013.12.31 and a release date of 2015.7.13, a leading consumer ETF passively tracks the CSI Consumer Index with a base date of 2004.12.31 and a release date of 2018.11.21, a bank ETF passively tracks the CSI Bank Index with a base date of 2004.12.31 and is released on July 15, 2013, and a brokerage ETF passively tracks the CSI All-Index Securities Company Index with a base date of 2007.6.29 and is released on July 15, 2013Food ETF (515710) passively tracks the CSI Subdivision Food & Beverage Industry Theme Index, which is based on 2004.12.31 and released on 2012.4.11, and the underlying index of A50ETF Huabao and its feeder fund is CSI A50 Index, which has a base date of 2014.12.31 and a release date of 2024.1.2. The composition of the index constituents is adjusted in accordance with the rules of the index, and its backtested historical performance is not indicative of the future performance of the index. The individual stocks mentioned in the article are only objectively displayed and enumerated as index constituent stocks, and are not recommended as any individual stocks, and do not represent the fund manager and fund investment direction. Any information appearing in this article (including but not limited to individual stocks, comments, forecasts, charts, indicators, theories, any form of expression, etc.) is for reference only, and investors shall be responsible for any investment behavior determined independently. In addition, any opinions, analysis and forecasts in this article do not constitute any form of investment advice to the reader, and the company shall not be liable for any direct or indirect losses arising from the use of the content of this article. Investors should carefully read the Fund Contract, Prospectus, Fund Product Key Facts Statement and other legal documents of the fund, understand the risk-return characteristics of the fund, and choose products that are suitable for their own risk tolerance. Past performance of a fund is not indicative of its future performance, and the performance of other funds managed by the fund manager does not constitute a guarantee of the performance of the fund. According to the assessment of the fund manager, the risk level of non-ferrous leading ETFs, consumer leading ETFs, bank ETFs, brokerage ETFs, food ETFs, A50 ETF Huabao and its feeder funds are all R3-medium risk, suitable for investors with balanced (C3) and above, and the suitability matching opinions are subject to the sales agency. Investors should pay attention to the suitability opinions issued by the fund managers in a timely manner when the distribution agencies (including fund managers, direct sales agencies and other sales agencies) conduct risk assessments of the above funds in accordance with relevant laws and regulations, and the opinions of each sales agency on the suitability are not necessarily the same, and the risk rating evaluation results of fund products issued by fund distribution agencies shall not be lower than the risk rating evaluation results made by fund managers. The risk-return characteristics of the fund and the risk level of the fund in the fund contract are different due to different factors to be considered. Investors should understand the risk and return of the fund, carefully select fund products based on their own investment objectives, horizon, investment experience and risk tolerance, and bear their own risks. The registration of the above funds by the China Securities Regulatory Commission does not indicate that it has made substantive judgments or guarantees on the investment value, market prospects and returns of the funds. Caution should be exercised when investing in funds.
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