On June 5, 2024, the A-share market continued to fluctuate and adjust, and all major indices fell. The Shanghai Composite Index fell 0.83%, the Shenzhen Component Index fell 0.8%, and the ChiNext Index fell 0.54%. The turnover of the two cities was less than 700 billion, a decrease of 57.1 billion from the previous trading day, and the market sentiment was relatively sluggish. Combined with the latest market data and information, we will provide an in-depth analysis of the current performance of the A-share market and explore future investment opportunities.
1. Market performance: shock adjustment, trading volume shrinking
Judging from the performance of major indexes, the A-share market has recently been in a stage of shock adjustment, and the market sentiment is relatively cautious.
On June 5, the turnover of the Shanghai and Shenzhen markets was only 688.6 billion, a significant decrease from the previous trading day, showing that investors have a strong wait-and-see mood and the market lacks obvious long-term momentum.
From the perspective of industry sectors, the concept stocks of Cheluyun in the automotive industry chain are active, and satellite navigation and other sectors have also risen. However, sectors such as real estate, virtual power plants, and industrial metals were among the top decliners, dragging down the overall performance of the market.
2. Valuation level: The overall level is at a low level, and some sectors are attractive
From the perspective of valuation level, the overall valuation of the current A-share market is at a relatively low historical level, which has certain investment value.
Specifically, the PE and PB valuations of large-cap blue-chip indices such as SSE 50 and CSI 300 are at historically low quantiles, showing a high margin of safety. Small and medium-cap indices such as CSI 500 and CSI 1000, although their valuation levels are higher than those of large-cap blue chips, they also have certain investment value considering their growth.
In terms of industries, the valuations of traditional industries such as banking, non-bank finance, and real estate are at historically low levels and have a certain degree of defensiveness. Although the valuation of emerging industries such as medicine and biology, new energy, and technology has rebounded, they still have high growth space in the long run.
3. Market outlook: opportunities and risks coexist, pay attention to policy and economic data
In the coming period, the A-share market is likely to maintain a volatile adjustment trend, with both opportunities and risks.
1. Tailwinds:
- Policy support: The central government continues to release signals of stable growth, emphasizing the intensification of macro policy regulation and control, and is expected to introduce a series of policy measures to support the development of the real economy to provide support for the A-share market.
- Valuation advantage: The overall valuation of the A-share market is at a relatively low historical level, which provides a good opportunity for long-term funds to enter the market.
- Economic recovery expectations: As the impact of the epidemic gradually subsides, China's economy is expected to recover gradually, providing fundamental support for the A-share market.
2. Risk Factors:
- Slowing global growth: The risk of a slowdown in global growth remains, which may put some pressure on the A-share market.
- Geopolitical risk: The geopolitical situation is complex and volatile, which may have an impact on market sentiment.
- Uncertainty about the domestic economic recovery: The domestic economic recovery is not yet firmly on the ground, and the recovery process may be volatile.
4. Investment advice: pay attention to policy signals and select high-quality targets
Valuation appraisal
Based on market performance, valuation levels and future outlook, we recommend investors to remain cautiously optimistic in the current market environment, pay attention to policy signals and changes in economic data, and select high-quality investment targets.
- Pay attention to the direction of policy support: pay attention to the direction of national policy support, such as new energy, high-end manufacturing, digital economy and other fields, and look for investment opportunities under policy dividends.
- Select high-quality targets with low valuations: Focus on high-quality companies with historically low valuations, especially those with stable performance and high dividend rates, to obtain long-term stable investment returns.
- Pay attention to changes in market sentiment: Pay close attention to changes in market sentiment, avoid chasing up and down, and lay out high-quality targets on dips when the market adjusts.
In short, the current A-share market is in a stage of shock adjustment, with both opportunities and risks. Investors should remain rational, pay attention to policy signals and economic data, and select high-quality targets in order to grasp investment opportunities in a volatile market.