The Shanghai Composite Index stood at 3,100 points, and northbound funds continued to increase their positions

National Business Daily

2024-04-29 22:57Published on the official account of Sichuan Daily Economic News

Reporter: Yang Jian, Peng Shuiping    

Yesterday (April 29), A-shares went on a strong upward spiral, with the Shanghai Composite Index breaking through 3,100 points, hitting a new high in the year, the ChiNext Index rose 3.50%, and northbound funds bought 10.892 billion yuan throughout the day, and increased their positions for four consecutive trading days with a total of more than 38 billion yuan. From the perspective of the disk, the industry sector rose generally, the real estate sector rose sharply across the board, and Vanke A put a huge amount of daily limit.

The data of the private placement network shows that 59.57% of the private placements recommend holding shares for the holiday, and 31.91% of the private placements recommend holding half of the shares, mainly because they are worried about the uncertainty during the long holiday. For the post-holiday market, 51.06% of private placements are optimistic.

Source: Oriental Wealth, Everbright Securities, Yang Jing Mapping

The three major indices collectively strengthened

Yesterday, A-shares went on a strong upward spiral, with the three major indexes collectively strengthening, with the Shanghai Composite Index breaking through 3,100 points, hitting a new high this year, the Shenzhen Component Index recovering the two integer thresholds of 9,500 points and 9,600 points in one fell swoop, and the ChiNext Index and the Science and Technology Innovation 50 Index both rose by more than 3%. The turnover of the Shanghai and Shenzhen stock markets exceeded 1.2 trillion yuan, and the industry sector showed a general upward pattern.

A total of 4,513 stocks rose in the market throughout the day, of which 135 stocks rose by the limit. From the disc point of view, the real estate sector rose sharply, stimulated by positive factors such as Chengdu's release of purchase restrictions, the real estate sector set off a tide of daily limits, of which Vanke A's daily limit was the most attention-grabbing, and the trading volume of the stock hit a new high in the past 8 years.

It is worth noting that northbound funds bought 10.892 billion yuan on a large net basis throughout the day, adding more than 38 billion yuan in total for four consecutive trading days. Regarding the northbound funds flocking to the bottom, Chen Xingwen, chief investment officer of Blacksaki Capital, told reporters that this undoubtedly shows that a mighty "slow cow" has been quietly launched. The strong inflow of northbound funds reflects the confidence of international investors in the Chinese market. The stability of China's economy, the predictability of policies, and especially the A-share investment opportunities with strong dividends and low price-to-earnings ratios are the main factors attracting foreign investment. In addition, the rise of global geopolitical risks has made the Chinese market a safe haven, facilitating the inflow of northbound funds.

The main reason behind the strong performance of the A-share market has been strong recently, and the large-scale buying of northbound funds has become a key factor driving the rise of A-shares, mainly because in the context of the depreciation of other currencies in Asia, the solid performance of the RMB and Hong Kong dollar has enhanced the safe-haven value of Chinese assets, prompting international capital to accelerate the inflow of international capital into the A-share and Hong Kong stock markets, which are currently in a value depression. The continuous rise in the market has pushed the Shanghai Composite Index to break through the previous high and the annual line, which indicates the continuation of the market's upward trend.

Holiday Stocking or Currency Holding?

Recently, the market is hot, foreign capital continues to pour in, and domestic capital is also constantly increasing its position. According to the data of the private placement network, as of April 19, 2024, the stock private placement position index was 78.83%, achieving two consecutive increases. Since the beginning of February, the equity private position index has continued its upward momentum, and the latest position index has hit a new high in nearly 12 weeks, a sharp increase of 3.59 percentage points from the lowest position index of 75.24% this year.

However, the "May Day" holiday is approaching, and there may be some uncertainties during the holiday, so do investors hold shares for the holiday or hold currency for the holiday? According to the results of the survey on the private placement network, 59.57 percent of the private placements suggested holding shares for the holiday, believing that the market has limited room for decline; 31.91 percent of the private placements suggested that the shares and currencies were half each, mainly because they were worried about the uncertainty during the long holiday; and another 8.51 percent of the private placements suggested holding the currency for the holiday. For the post-holiday market, 51.06% of private placements are optimistic, 36.17% are neutral, and another 12.77% are cautious.

Hu Mohan told reporters that with the intensive disclosure of annual reports and quarterly reports, the market has released the performance risks accumulated before. At the same time, investors began to notice the improvement in the performance of listed companies, coupled with the continuous introduction of favorable policies, which further strengthened the market's expectations for the continued recovery of the domestic economy and the performance growth of listed companies. Looking ahead, the A-share market is expected to continue its upward trend. However, the general rally in the market is unlikely to continue, and the market will diverge, and investors need to look for and grasp the main investment opportunities.

In terms of specific strategies, we are still actively optimistic about the medium and long-term market performance of technology growth stocks, focusing on the fields of AI+ industry chain, humanoid robots, Starlink communication, and innovative drugs. At the same time, we should also pay attention to the continuous performance of the "medium and special valuation" sector, which has medium and long-term allocation value based on the high dividend strategy. In addition, resource commodities such as copper are likely to continue medium-term opportunities.

National Business Daily

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