The macro situation is relatively moderate, and the current pressure on the economy is still obvious, especially after entering May, the real estate market destocking phenomenon is obvious, and market funds have fallen into a situation of low liquidity. The European and American stock markets continue to reach new highs, and the U.S. stock market is less than 2% away from the 40,000-point record high. It is worth noting that there is no northbound capital data reference from today, and the A-share market has become less referential, and at the same time, it is not affected by external data.
Riding a bull and watching a bear found that the details of the drug collectively rose sharply, driving the rebound of pharmaceutical stocks. One of the big changes in the revised version is that it extends the waiver of existing contracts/products until January 1, 2032, which is expected to give U.S. pharmaceutical companies nearly eight years to change partners. Pharmaceutical companies tend to choose excellent CRO companies that can help the R&D and marketing of new drugs to a greater extent, and CRO companies with global large-scale clinical trial project management capabilities, digital empowerment capabilities, clinical resource advantages, rich project experience, strong adaptability to innovative technologies, and can provide integrated, end-to-end services across the whole life cycle of drug and medical device R&D will have a wider moat and greater competitive advantage.
The three major indexes collectively opened low, with less than 1,000 red stocks in the opening two cities, and the performance of transportation equipment, water, pork and other sectors was strong, while the performance of military informatization, spatio-temporal big data, wine and other sectors was poor. The revised bill will restrict U.S. entities from doing business with certain Chinese biotech companies, including WuXi AppTec and BGI, and explicitly require U.S. companies to end their cooperation with these companies by January 2032, which extends the buffer time for companies to find new partners. In the five years from 2023 to 2027, the high-speed copper cable market will continue to expand at an astonishing compound annual growth rate (CAGR) of 25%.
More than 130 cities and counties have issued linkage mechanism documents or notices to promote the rise in residential gas prices, such as the first, second and third prices in Shenzhen increased by 10%, 9% and 6% respectively. According to Silicon Valley technology media The Information, OpenAI is developing an AI voice assistant with audio and visual understanding capabilities, which may be previewed at next Monday's event as early as possible. Under the triple logic deduction of equipment renewal + passenger flow recovery + overhaul cycle, the rail transit industry will usher in a new round of prosperity, and there is still an expected gap in railway equipment.
The Shanghai Composite Index opened low and went high on Monday, but it was never able to turn red strongly, and the overall performance in early trading was average, and the stocks in the two cities were always falling more and rising less. The weekend mentioned the loosening of the IPO, which is good for brokers, but on Monday, brokerages did not rise sharply, but ushered in a general decline in individual stocks. In addition, the data of northbound funds will not be seen in the future, which also makes the market suddenly not know what to do, and there is a feeling that there is a reference value missing. In the afternoon, pay attention to whether the Shanghai Composite Index can stabilize above 3150 points.
The ChiNext index fell below the 5-day line on Monday and stabilized near the 10-day line, showing clear signs of a correction. From the perspective of recent driving factors, the return of overseas funds is an important factor, the recovery of economic expectations and the positive policy environment, and the low valuation of China's stock market has attracted the attention of global investors, the northbound capital continues to have a net inflow, and Hong Kong stocks, which are more affected by the margin of international liquidity, have performed better than A-shares in the same period, which can support this fact. For the current index, it is strategically recommended to increase the take profit setting while holding long, not chasing higher, and continue to pay attention to buying opportunities if there is a sharp adjustment. In the afternoon, pay attention to whether the GEM index can stabilize above 1860 points.
Lunchtime highlights:
1. The central price of RMB against the US dollar was reported at 7.1030, down 19 points, the central price of the previous trading day was 7.1011, the official closing price of the previous trading day was 7.2246, and the previous day's night price was closed at 7.2270
2. As of May 10, the financing balance of the Shanghai Stock Exchange was 790.829 billion yuan, a decrease of 469 million yuan from the previous trading day, the financing balance of the Shenzhen Stock Exchange was 702.683 billion yuan, a decrease of 1.102 billion yuan from the previous trading day, and the total of the two cities was 1493.512 billion yuan, a decrease of 1.571 billion yuan from the previous trading day.