UBS is bearish on U.S. stocks and A-shares! Hong Kong stocks technology rose more than 3%, and the Ministry of Finance issued a blockbuster document

Look at finance

2024-04-23 16:54Posted on the official account of Guangdong Kan Finance

In the first two weeks, due to the catalysis of the conflict between Iran and Israel, gold prices soared, and with crude oil, copper and other commodities continued to rise, countless speculative funds poured into futures and stock markets for speculation, reinflation expectations superimposed geopolitical games, market risk aversion heated up, so we can see that on the one hand, resource stocks skyrocketed, and on the other hand, technology growth stocks weakened. Then last week's farce made everyone find that Iran and Israel are fighting a "face war", the market's worries subsided, gold and crude oil rose and fell back that day, gold and crude oil plummeted on Monday, and A-share resource stocks plummeted today.

As the May Day holiday is approaching, A-shares have entered a "constipation period" again, with the turnover of the two cities shrinking sharply to 0.77 trillion yuan, and the net selling of northbound funds is 2.997 billion, which is significantly more sold than bought recently. However, Hong Kong stocks have been very strong in the past two days, and Hang Seng Technology rose more than 3% today.

Specifically, let's take a look at today's blockbuster news:

The capital market is heavy

According to the Financial Associated Press, on the afternoon of April 22, the State Council conducted the seventh special study with the theme of "Further Deepening the Reform of the Capital Market and Promoting the Steady and Healthy Development of the Capital Market". Premier Li Qiang stressed that it is necessary to thoroughly study and implement the spirit of General Secretary Xi Jinping's important instructions on the development of the capital market, accelerate the construction of a safe, standardized, transparent, open, dynamic and resilient capital market in accordance with the decisions and arrangements of the Party Central Committee, and better play the functional role of the capital market, promote the construction of a financial power, and serve the overall situation of Chinese-style modernization.

According to the Financial Associated Press, the Ministry of Finance wrote in the People's Daily that at present, the scale of the mainland's financial system is already very large, but the financing structure is unreasonable, the ratio of indirect financing to direct financing is 7:3, and the proportion of bond financing and equity financing in direct financing is about 9:1, and there are problems such as "more money and less capital" and "insufficient patient capital". A well-structured financial market system is the fundamental prerequisite for finance to effectively serve the real economy. It is necessary to support the construction of a safe, standardized, transparent, open, dynamic and resilient capital market. Vigorously improve the quality of listed companies, consolidate the professional gatekeeping responsibilities of third-party intermediaries, and crack down on accounting fraud in accordance with the law. Improve the tax system of the capital market and improve the policies conducive to the entry of medium and long-term funds into the market. Efforts should be made to optimize the relationship between direct and indirect financing, equity and debt financing, and to optimize the institutional environment for fundraising, investment, management and withdrawal, so as to better play the role of venture capital and private equity investment in supporting scientific and technological innovation.

After the introduction of the new "National Nine Articles", I believe that there will be more blockbuster policies in the capital market, and we must realize that the status of the capital market has changed, and it is not a fool's dream for A-shares to usher in a long bull.

UBS upgraded the ratings of A-shares and Hong Kong stocks

UBS downgraded the sector ratings of six tech giants – Alphabet, Apple, Amazon, Meta, Microsoft and Nvidia – from "overweight" to "neutral" and forecasted a slowdown in their earnings growth, according to the Financial Associated Press. UBS upgraded A-shares and Hong Kong stocks to overweight, and downgraded South Korean stocks to neutral.

Recently, foreign investment banks have been bullish on China's economy and Chinese assets, UBS just downgraded the ratings of the seven major US stocks yesterday, and today upgraded the ratings of Hong Kong stocks and A-shares.

The sell-side institutions of A-shares serve the buyer, so they like to sing long, and the credibility of their views is low. However, foreign institutions did not accept benefits, and their ratings of A-shares and Hong Kong stocks were relatively objective. In the past, there was a Huijin bottom-buying ETF of more than 300 billion, and now foreign institutions are also singing more than A-shares, and institutions must be smarter than retail investors. Most of the global stock markets are at a high level, even the European stock market in recession was once at a record high, only A-shares, Hong Kong stocks are more cost-effective, and there have been reports before - foreign institutions sold the Indian stock market to A-shares.

Although the Fed's interest rate cut is expected to be postponed repeatedly, the European Central Bank is likely to cut interest rates in June, the global interest rate hike cycle has ended, and the easing cycle will come.

The pharmaceutical sector exploded

Today's midday pharmaceutical sector suddenly exploded, Gan & Lee Pharmaceutical, Aosaikang, Lifang Pharmaceutical and other stocks rose by the limit, and the innovative drug sector rose nearly 3%.

We took a look at the stimulus that may have been stimulated by the overall increase in the price of insulin in Gan & Lee Pharmaceutical compared with the winning bid price in the previous round of centralized procurement, indicating that the price of centralized procurement has eased. In addition, the agency also believes that it may be affected by the summary issued by ASCO on the 24th, ASCO in 024 is good for domestic innovative pharmaceutical companies, and there are many overseas projects in 23, most of which are concentrated in the ADC field, and overseas ADC data is easy to map to domestic companies.

The pharmaceutical sector is one of the few sectors that fell quickly before the rebound, and it is also one of the worst sectors in recent years.

According to the quarterly report just disclosed by the public fund, the main increase in the first quarter of the public offering is dividend stocks, resource stocks and home appliances, electrical equipment and other overseas directions, and these sectors have fallen sharply this week, it must be that institutions have begun to adjust their positions again.

Finally, looking at the market, as of the close, the Shanghai Composite Index fell by 0.74%, and the ChiNext Index rose by 0.15%. The Hong Kong Hang Seng Index rose 1.89%, and the Hang Seng Tech Index rose 3.38%. Today is mainly large-cap stocks to cover losses, and small and micro-cap stocks have performed well, with more than 3,200 companies rising.

Risk Warning:

The stock market is risky, investment needs to be cautious, this article does not constitute investment advice, readers need to think independently

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