Yi Huiman responded and found the reason! At a critical moment, A-shares saw a sharp upward trend, with just the price | real estate | A-shares
China Fund News Taylor
Brothers and sisters, today's crazy Thursday, with the speech of Lujiazui Forum, A-share market rose in a straight line in the afternoon. However, as of the closing, the rise of Shanghai Stock Exchange has narrowed, and the GEM has fallen slightly.
Let's take a look at today's big events together.
On the afternoon of the 8th, A-shares collectively rose and rebounded, with the Shanghai Composite Index rising nearly 1% at one point, followed by a slight decline in gains.
As of the close, the Shanghai Composite Index rose 0.5%, the Shenzhen Component Index rose 0.13%, and the ChiNext Index fell 0.28%. A total of 1779 stocks in the two markets rose, 3229 stocks fell, and northbound funds bought a net 2.9 billion yuan.
Let's find out the reason together. Today's rally has resonance in several aspects of news.
Firstly, the real estate industry chain has surged. In terms of news, China Real Estate Network has pointed out in an article that the real estate industry is an important pillar industry of the national economy. Currently, there are still many places implementing relatively strict policies of purchase, loan, and price restrictions, which have caused distortion of market price signals and misallocation of resources. The above-mentioned restrictive policies should be short-term administrative measures introduced under specific historical conditions and industry development situations. In cases where external conditions have changed and policies such as purchase and loan restrictions no longer exist, it is necessary to cancel restrictive measures.
The so-called external conditions include: firstly, the total population size in China has begun to decline, the scale of existing real estate housing continues to grow, and each household has more than one unit. The second is that the urbanization process has entered a deepening stage, with more obvious characteristics of two-way and cross exchange of population, and the intensity of population competition between cities is strengthening. Thirdly, in terms of consumption and investment concepts, real estate is no longer synonymous with high returns, and some urban housing prices have begun to "Hegang style". Behind this is that urban housing prices without industry and population support no longer have investment attributes. Fourthly, the level of housing security has significantly improved, especially with the government vigorously promoting affordable housing projects and carrying out large-scale shantytown renovations, providing a large and relatively low-cost housing supply for the middle and low-income groups. The combination of these aspects can to a considerable extent offset the market impact after the lifting of purchase and loan restrictions. Without various restrictive policies, the return of market mechanisms to normal is the key to the healthy and stable development of real estate.
Secondly, the major financial sector and banks and securities firms have risen.
On the morning of June 8th, the Lujiazui Forum opened in Shanghai. The Governor of the People's Bank of China, Yi Gang, the Director of the State Administration of Financial Supervision and Administration, Li Yunze, the Chairman of the China Securities Regulatory Commission, Yi Huiman, and the Deputy Governor of the People's Bank of China and Director of the State Administration of Foreign Exchange, Pan Gongsheng, attended and delivered speeches.
Among them, Yi Huiman stated that in recent times, stock volatility has increased, and the rotation of hot topics in sectors has accelerated. Discussions on quantitative trading, market fairness, short-term fund speculation, and industry institutional responsibility have increased. The China Securities Regulatory Commission attaches great importance to the supervision of the capital market, will continue to strengthen the monitoring and supervision of market trading behavior, do a good job in tracking and analyzing new trading methods such as quantitative trading, resolutely crack down on illegal activities such as insider trading and market manipulation, and effectively maintain a healthy market order and ecology.
Thirdly, the concept of artificial intelligence has declined. The application direction of film and television, media, etc. led the decline. On the news, the State Council has released the legislative work plan for 2023, and the draft of the Artificial Intelligence Law is ready to be submitted to the Standing Committee of the National People's Congress for review!
Fourthly, new energy is once again bearish.
After CATL, the domestic photovoltaic leader Longi Green Energy was lowered its target price by Wall Street giant Morgan Stanley.
On June 8th, Morgan Stanley lowered its target price for Longi Green Energy from 58 yuan to 38 yuan, and slightly lowered its earnings per share forecast for the next two years, citing slower growth compared to industry competitors.
Analysts Simon Lee and Teresa Yan stated in their report that although Longi Green Energy is leading in technology, its shipment volume in the highest profit margin US market is relatively low, and it is expected that its profit growth will be lower than that of JA Solar.
However, the report still points out that the market is overly concerned about the profitability of battery panel modules. As production costs further decrease, integrated module suppliers can maintain stable unit gross profit, and profits will shift from polycrystalline silicon/chips to battery/panel modules.
In addition, Zhu Huarong, Chairman and Party Secretary of Changan Automobile, delivered a speech stating that the division of labor in the automotive industry is in an unstable state, and the business boundaries are being restructured with a trend of mutual penetration. Zhu Huarong predicts that by 2025, China will need a power battery production capacity of 1000-1200GWh, and the industry's current production capacity plan has reached 4800GWh. Zhu Huarong pointed out that with severe overcapacity, the industry will inevitably return to a rational state.
