There are only 5 days left for the disclosure of the poor performance annual report, and large-cap stocks are singing on the stage of growth stocks
Today's news:
[The three major U.S. stock indexes collectively closed up, and large technology stocks rose] U.S. stocks opened higher overnight, and the three major indexes collectively closed higher. The Nasdaq rose 1.59%, the S&P 500 rose 1.2%, and the Dow rose 0.69%. Large technology stocks rose, Netflix rose more than 4%, Nvidia rose more than 3%, and Meta rose more than 2%.
A month ago, the symposium on promoting the rise of the central region in the new era was held in Changsha, Hunan. At the meeting, it was revealed that "in the next step, we will hold a symposium on promoting the large-scale development of the western region, the ecological protection and high-quality development of the Yellow River Basin, and these meetings will be held once at a time, one by one, and one round after another......"
Recently, there have been more and more examples of foreign investors singing long and long A-shares. Analysts believe that the emergence of this situation is not unrelated to factors such as the economic recovery, the gradual effectiveness of policies, and the low valuation level of A-shares. As the relevant authorities continue to expand the channels for cross-border market connectivity, support foreign institutions to invest in domestic technology-based enterprises, and optimize the environment for foreign institutions to invest in domestic bonds, more long-term foreign institutions will increase their investment in China.
The 4-day upward trend of Hong Kong stocks has excited the market. Behind the improvement of the market, there are three positive supports: First, the Hong Kong Monetary Authority is intensively injecting liquidity, and on April 22 and 23, it injected HK$525 million and HK$500 million liquidity into banks through the discount window respectively. Second, this year marks the 10th anniversary of the launch of the Stock Connect between the Mainland and Hong Kong. Flagship summits and forums will be held in the Mainland, Hong Kong and overseas, focusing on the achievements, experiences and new developments of "connectivity", as well as the financing and investment opportunities brought to enterprises and funds, so as to attract more enterprises and capital to invest in the Hong Kong market. Third, there are good signals from Hong Kong's economy. Hong Kong's economy is expected to grow by 2.5% to 3.5% this year, driven by improved merchandise exports, continued recovery in inbound tourism, and strategic business and talent inflows.
The new "National Nine Articles" clearly promote the entry of medium and long-term funds into the market and encourage bank wealth management funds to participate in the capital market. A reporter from Shanghai Securities News recently learned that a number of wealth management companies are increasing equity investment, and "rights" wealth management products have raised more than 2 billion yuan in the first time.
As of April 23, the financing balance of the Shanghai Stock Exchange was 786.254 billion yuan, a decrease of 1.675 billion yuan from the previous trading day, the financing balance of the Shenzhen Stock Exchange was 698.489 billion yuan, a decrease of 1.325 billion yuan from the previous trading day, and the total financing balance of the two cities was 1484.743 billion yuan, a decrease of 3.00 billion yuan from the previous trading day.
[Net inflow of northbound funds of 1.8 billion yuan] As of the close of trading at noon, the net inflow of northbound funds was 1.795 billion.
This morning, the market opened 8 points higher at 3029 points, bottomed out at 3019 points, rushed up 3039 points, and closed at 3031 points before noon. The SSE 50, the Shanghai Composite Index, the Science and Technology Innovation Board, the CSI 500 and the CSI 1000 rose 0.10%, 0.33%, 0.67%, 0.25% and 0.83%, while the CSI 300, the Shenzhen Component Index and the ChiNext fell 0.01%, 0.00% and 0.09%. The ratio of individual stocks is 3740:1419, and the ratio of price limit is 57:5. The half-day turnover of the two cities was 482.8 billion, a decrease of 800 million from the previous trading day.
The expected performance of the annual report released at the end of the month is mostly poor, and the market has been under pressure recently. Although the four major ETFs and the four major bank stocks of the national team stubbornly rose against the trend, the result was a continuous net outflow of funds from the north, and a large decline in small and medium-sized market capitalization stocks.
Since Tuesday, the national team has adjusted its strategy and backhanded the four major ETFs and four major bank stocks, breaking the index above 3,030 points and returning to the starting point of 3,019 points on April 12, which gave small and medium-sized stocks a chance to rise. Yesterday's stock rise and fall ratio was 3236:1994, and this morning was 3740:1419, and the number of stocks with a down limit decreased significantly, only 5. The white line is lower and the yellow line is higher, and small and medium-sized stocks outperform the market in a large area. The broad market index returned above 3,030 points, and northbound funds also became net inflows.
Although there are still 5 days left in the annual report disclosure, because the market has been "squatting" in advance for two consecutive weeks, it has reacted to the bearishness. Therefore, it is estimated that by this Friday, most of the negative reports will be released, and the impact of next week's 2-day bearish statements will be limited. Therefore, some funds began to absorb dips in advance in the mid-cap stocks with excellent performance, low valuation, high growth, and the top ten shareholders of the social security fund, the national team, and foreign capital at the same time. According to the stock market performance over the years, after a decline in April, it tends to bottom out and rebound on April 26-27. For example, on April 27, 2022, the bottom was 2863 points, and then it rose by 600 points in the following 3 months. Let's see if there's a repeat this year.
Judging from the changes in the rebalancing of foreign public funds and domestic public funds in the first quarter, they have basically shifted to two directions: first, the large-cap blue-chip stock sector with low valuation and high dividends. Second, high-quality mid-cap stocks with new quality productivity, including BlackRock, Fidelity, Neuberger, Goldman Sachs, UBS, Morgan, Bridgewater, etc., are increasingly optimistic about Chinese assets and express that they will continue to be overweight. Therefore, A-shares near 3,000 points have great potential in the long run, and the opportunities to increase positions in this position obviously outweigh the risks.
People should pay attention to the recent Hong Kong stocks have risen for 4 consecutive days to 17,147 points, if calculated from the lowest 14,794 points in February, up 2,353 points, more than the rebound of A shares since 2,635 points. Obviously, it is foreign capital to make a move, whether this wind can blow to A-shares, people should wait and see, at least continue to be bearish and short A-shares is not advisable.
Afternoon attention: Can the market close above 3030 points? Can the top close above the 20-week antenna at 3042 points and the five-week moving average at 3045 points? Can the eight major varieties of the national team be stabilized? Can the northbound funds continue to expand on the basis of the net inflow of 1.8 billion yuan in the morning? Can the situation of 3740:1419 stocks rising and falling more and falling less can be maintained and expanded? Can the trading volume be enlarged to 800 billion?