Market Shock Adjustment, Coal Industry Active [Stock Market Afternoon Review]

May 8th:

Brief description of the plate

Public transportation, coal, agriculture, forestry, animal husbandry and fishery, electric power, gas and heating, transportation facilities, transportation services, banking, petroleum, insurance, papermaking, health care, medicine and other industries are active, Internet, real estate, nonferrous metals, media and entertainment, software development, communication equipment, automobiles, mineral products, household appliances, tourism and other industries are adjusted; In terms of subject matter, immunotherapy, disperse dyes, chicken concept, gene concept, biological vaccine, diet pills, glyphosate, new crown detection, assisted reproduction, human brain engineering, medical beauty concept, food safety, seed industry, pork and other themes are in rotation, and themes such as Sora concept, copper cable high-speed connection, flying car, multimodal AI, knowledge payment, quantum technology, spatio-temporal big data, quantum technology, short drama games, cloud games, military informatization, operating systems, state-owned assets cloud and other themes are weakening.

Hot Plates

Power stocks bucked the trend and strengthened, Xichang Electric Power rose by the limit, Star Power, Huayin Electric Power, and Langfang Development rose by more than 5%, and Hangzhou Thermal Power, Leshan Electric Power, and Mindong Electric Power followed suit. On the news side, the National Energy Administration recently said that it is expected that during the summer of this year, the national electricity load will grow rapidly, and the maximum load will increase by more than 100 million kilowatts year-on-year, and the power supply is facing certain pressure.

In the morning, the coal sector rebounded, Jinkong Coal Industry hit the daily limit, Lu'an Environmental Energy, Yankuang Energy, Haohua Energy, Shaanxi Coal Industry, etc. followed up. Soochow Securities pointed out that the contraction of supply will amplify the contradiction between supply and demand in the peak demand season of the power industry, so it is expected to promote coal prices to rebound again. The expectation that coal prices will rise to 1,200 yuan/ton in May has been revised to 1,200 yuan/ton in June, and the expectation of coal prices remains optimistic.

The banking sector was partially active, with stocks such as Changshu Bank, Shanghai Rural Commercial Bank, China CITIC Bank, Bank of Jiangsu, Bank of Hangzhou, Bank of Chengdu, Agricultural Bank of China, Bank of Beijing, and Huaxia Bank showing intraday gains.

The transportation sector has partially risen, the public transportation has risen by the limit, and the Wantong Expressway, China Merchants Highway, Fulin Transportation Industry, and Shentong Metro have risen.

In early trading, the concept of stem cells rose in a large area, and many constituent stocks such as Guanhao Biotechnology, Kaineng Health, Tailin Biotechnology, Zhongyuan Concord, Jimin Medical, Nanhua Biotechnology, Berry Gene, Nanjing Xinbai and so on. On the news side, Yin Hao's team from Shanghai Changzheng Hospital and Cheng Xin's team from the Chinese Academy of Sciences successfully cured a type 2 diabetic patient with severe impaired pancreatic islet function for the first time in the world using stem cell-derived autologous regenerative islet transplantation, and the patient has been completely weaned off insulin for 33 months. The results were published in the international journal Cell Discovery.

The concept of synthetic biology bottomed out and rebounded, and Ruifeng High Materials rose by more than 15%, after Blue Biotech walked out of 6 consecutive boards, Sino Biological, Nearshore Protein, Xinghu Technology, Lukang Pharmaceutical, etc. According to the research report of China Securities Construction Investment, synthetic biology is a sunrise industry that emerged at the beginning of this century, which can realize the transformation and even creation of living systems, and the current primary market financing is hot. Technological breakthroughs tend to spiral, and we should remain optimistic about the future development of the industry.

The concept of sports has risen differently, Jinling Sports has risen by more than 10%, and Lisheng Sports, Yingpaisi, Rhine Sports, Jiuqi Shares, etc. have followed up quickly. On the news side, Gao Zhidan, director of the General Administration of Sports of the People's Republic of China, wrote an article "Persist in Empowering the High-quality Development of Sports with Reform and Innovation", requiring that relevant departments develop policy documents to promote the transformation and upgrading of sporting goods and equipment, carry out the evaluation of the second batch of national sports consumption pilot cities, organize multi-theme sports consumption promotion activities, innovate and create sports consumption scenarios, and continue to expand the scale of sports consumption.

Intelligent driving concept stocks moved up, Huaan Xinchuang 20CM daily limit, Yitong Century, Zhonghaida, Wanji Technology, Faben Information, Luchang Technology, Riying Electronics, etc. followed up. On the news side, recently, Tesla CEO Elon Musk's "lightning" visit to China has triggered discussions and conjectures about "Tesla's full self-driving entry into China". The reporter learned through multiple sources that Tesla proposed to land "driverless taxis" in China. In this regard, the Chinese government may first support its domestic testing and demonstration, but has not yet fully approved the full implementation of its FSD in China.

The hydrogen energy sector bottomed out and rebounded intraday, Sichuan Jinding walked out of 2 boards, and the new power underwater rose by more than 15%, and Shudao Equipment, Houpu Shares, Chunhui Intelligent Control, Yongan Xing, etc. quickly followed up. On the news side, the Chengdu Industrial Construction Circle and Strong Chain Work Leading Group recently issued the "Chengdu Industrial Construction Circle and Strong Chain 2024 Work Points". According to the "Key Points of Work" issued this time, low-altitude economy and hydrogen energy have become the two key industrial chains created by Chengdu's implementation of the industrial circle and strong chain action this year.

Gold stocks rebounded, Western Gold, Xiaocheng Technology rose more than 6%, Huayu Mining, Laishen Tongling, Hunan Gold, Shandong Gold, Sichuan Gold, etc. followed suit. On the news side, as of the end of April 2024, the mainland's gold reserves were 72.8 million ounces, compared with 72.74 million ounces at the end of March, marking the 18th consecutive month of increasing gold reserves.

Policy Messages

►In April, China's e-commerce logistics continued to develop steadily

The China Federation of Logistics and Purchasing announced today (8th) the China E-commerce Logistics Index for April. The e-commerce logistics index rose month-on-month for two consecutive months, of which the rural e-commerce logistics business volume increased rapidly year-on-year. China's e-commerce logistics index was 113.2 points in April, up 0.7 points month-on-month and breaking through 113 points for the first time since December 2019. Among the sub-indexes, the total business volume index, logistics timeliness index, fulfillment rate index, satisfaction rate index, personnel index and actual load rate index all increased compared with the previous month.

►General Administration of Sports of China: vigorously support the R&D and application of high-level sports science and technology

The General Administration of Sports of the People's Republic of China: It is necessary to fully implement the Action Plan for Strengthening Sports with Science and Technology (2024-2028), vigorously support the R&D and application of high-level sports science and technology, give priority to the development of digital sports laboratories and demonstration areas, and open up a new track for sports innovation and development. Promote the inter-embedding and deep integration of high-tech technologies such as 5G, Internet of Things, big data, cloud computing, and artificial intelligence with sports, and give full play to the technological advantages that support the innovation and development of sports. The key to building a sports power lies in talent. It is necessary to do a good job in the implementation of the "Talent Plan for the Construction of a Sports Power (2023-2035)". Give full play to the role of high-end sports talent incubation bases and transportation base stations in sports colleges, carry out basic theoretical research and high-tech research and development, and cultivate high-end talents urgently needed for sports development.

Jufeng view

Overall, the market showed a shock adjustment, and the industries in the two cities were differentiated and partially rotated. Public transportation, coal, agriculture, forestry, animal husbandry and fishery, electric power, gas and heating, transportation facilities, transportation services, banking, petroleum, insurance, papermaking, health care, medicine and other industries are active, while the Internet, real estate, nonferrous metals, media and entertainment, software development, communication equipment, automobiles, mineral products, household appliances, tourism and other industries are adjusting.

After the market continued to fluctuate after the holiday, there was a pullback in the short term under the profit-taking and on-site capital adjustment, the stock index continued to show a narrow range of shocks in the intraday, and the industries in the two cities were also sharply differentiated again, indicating that the funds in the market were divergent, and the market defensive sentiment has risen. In the short term, the overall trend of the market maintains an upward pattern, and the short-term adjustment does not hinder the medium-term trend upward, and the market adjustment is conducive to the digestion of short-term profits and the technical correction of the stock index. At present, the stock index has stood firm at the annual line and 3100 points, and a technical correction may be carried out near the 5-day line in the near future to confirm short-term technical support. With the continuous strengthening of follow-up policies and the continuous improvement of the domestic economy, the market is expected to continue to repair the market. In the short-term operation, investors can consider reducing their holdings on dips to cash in on short-term gains, while in the medium-term strategy, it is recommended to continue to lay out pro-cyclical industries and large-consumption theme opportunities on dips, and it is recommended to continue to pay attention to the large-scale infrastructure and large-consumption sectors, and pay attention to the structural opportunities of the low-altitude economy, artificial intelligence, intelligent machines and new energy vehicles, power batteries, photovoltaics, wind power and other themes under the new quality productivity.