Sun Yu of HSBC Qianhai Securities: Optimistic about six major investment themes such as emerging consumption

Source: Economic Reference Newspaper

Sun Yu, general manager of the securities research department of HSBC Qianhai Securities Co., Ltd., recently said at the "2021 China Economic and Market Outlook" telephone media communication meeting that China will return to the normalization before the epidemic next year, economic growth and corporate profits to achieve a relatively strong recovery, in the medium and long term optimistic about emerging consumption, consumption stratification, medical and health care, industrial chain upgrading, emerging technologies and new energy six major investment themes.

Sun Yu said that although other economies around the world are still plagued by the epidemic, China has gradually shaken off the impact. "Especially in the first quarter, we expect A-share year-on-year earnings growth to reach 45%. After that, it may fall back quarter by quarter, and the profit growth of the A-share market throughout the year may be close to 20%. ”

However, Sun Yu also pointed out that monetary policy is gradually returning to normalization, market liquidity is not stronger than this year, and the important driving force for the rise of A-shares will be weaker than this year. At the same time, valuation levels are at historic highs.

From the demand side, Sun Yu said that in the medium and long term, it is optimistic about the three major investment themes of emerging consumption, consumption stratification, and medical and health care. He pointed out that the characteristics of digitalization, community and convenience in the Chinese market are becoming increasingly prominent, and have the characteristics of obvious consumption classification, and pinduoduo, Taobao, etc. are selling hot in third- and fourth-tier cities, and the scale of the luxury market is also growing. With the continuation of the aging trend of the population and the cooperation of industrial policies, capital may further flow into the fields of new technologies, innovative drugs, vaccines and medical services to seek innovative technological breakthroughs.

From the supply side, Sun Yu said that the traditional industry industrial upgrading, core science and technology autonomy innovation and investment opportunities in the new energy industry chain are also worthy of attention, and the "14th Five-Year Plan" may become a catalyst for theme investment, and it is expected that more hot spots will appear next year.