Accelerated foreign goods sweeping: A-shares recover 300 billion and hundreds of billions of incremental funds are on the way
Foreign stocks have been expedited, A shares have recovered 3,000 points, and billions of incremental funds are still on the way. The FTSE and S & P two indexes are adjusted. They will take effect after the close on September 20. A shares will welcome a substantial increase.
On September 20, the Shanghai Index closed up by 0.
24%, to recover the 3,000-point integer mark to close at 3006.
The total turnover of the two cities was 546.9 billion. The industry sector was mixed, and the transportation equipment sector was the strong leader.
Northbound capital flowed in at US $ 18.4 billion today, and foreign countries accelerated their efforts to raise funds late in the morning, actively sweeping goods.
Since late August, foreign admissions have continued to increase, and the three major international indexes have expanded simultaneously, and will continue to contribute trillions of incremental funds during the year.
Benefiting from the influx of foreign capital and the long-term allocation of A-shares, analysts suggest focusing on blue-chip stocks that have sustainable growth potential and prices below value in industries such as information technology, medical insurance, and financial services.
1Foreign investors are picking up after the close on September 20, and will usher in a new stage in which global stock indexes replace Chinese A-shares. The FTSE Russell ‘s relative A-share factor is increased from 5% to 15%.The change factor breaks down A shares for the first time.
In other words, Standard & Poor’s and FTSE Russell’s expansion will take effect at the same time as the opening of September 23, and today as the last trading day before September 23, a large amount of planned funds may be “one step in place”.
At the end of the day, there was a sharp net inflow of funds from Beijing to 184.
5.8 billion, and significant changes in late trading.
According to the previous experience of MSCI’s A-share removal and expansion and FTSE Russell’s division of A-shares, in the end of the last trading day of Beijing Capital’s performance, there will often be a phenomenon of heavy buying.
An expert from a senior institution in Shanghai told the reporter of the International Financial News: “Foreign countries generally build positions in the last few minutes.
Because the error between the pursuit of passive funds and the index is the smallest, it will choose to go in at the last time before making up.
“Independent financial commentator Guo Shiliang said in an interview with the” International Financial News “reporter:” Today is an important time point for S & P Dow Jones correspondence and FTSE Russell expansion, gradually accelerating the recognition of A-share market value by net inflow instead of production.
“According to the FTSE Russell Index announcement, this time there are 87 new Chinese A shares, of which 14 are A-shares, 15 are A-shares, 50 are A-shares, and 8 are A-shares.
Of the 1,099 A shares that S & P Dow Jones distinguished from the 87 A shares newly replaced by FTSE Russell, 64 overlap.
Among them, there are 34 main boards in the Shanghai Stock Exchange, 15 main boards in the Shenzhen Stock Exchange, and 15 small and medium-sized boards.
UBS Securities China equity strategy team estimates that before the opening on September 23, there will be about $ 5 billion in passive exchange net inflows of A shares, of which $ 4 billion comes from the FTSE decomposition factor improvement, and about $ 1 billion comes from the S & P Dow Jones Index for the first time.Reach A.
At the same time, it is expected that the A-share market in 2019 will usher in more than $ 20 billion of passive redundant net traffic.
It is obvious that with the arrival of the three exponential resonance expansion periods, a large number of entry fields have continued to accelerate since late August.
In the first week of September, the capital inflow to the north hit a record high.
As of September 18, Beijing’s capital has gradually had a net inflow of 688 since August 16.
With the MSCI capacity expansion, the single-day net inflow of Beishang capital on August 27 reached a new high for the year. Next Monday (September 23), the simultaneous implementation of FTSE Russell capacity expansion and S & P Dow Jones Nass will be implemented.Net inflows pushed a new high.
The three major indexes will expand simultaneously, and will continue to contribute trillions of incremental funds during the year.
According to estimates by Guosheng Securities, the current expansion of the three major international indexes in August and September is expected to bring in US $ 45.5 billion of index-tracking funds, about 300 billion yuan, of which on September 23, it is expected to receive approximately US $ 6.4 billion of passive funds for admission.
In addition, according to the replacement plan issued by the Air Force MSCI, it is expected that a round of MSCI expansion plans will be implemented in November this year, with corresponding incremental funds of about 200 billion yuan. By the end of the year, all three major index expansion plans have been completed.Inflows are expected to exceed the trillion mark.
2 A-shares are becoming more and more popular. According to media reports, FTSE Russell said today that it may seek to increase the A-share replacement factor in September 2020.
Whether it is the cancellation of QFII / RQFII quotas, or the increase in the proportion of A-shares by internationally renowned indexes, the homogeneity behind it reflects the significant value of A-shares being cured and invented.
Zhang Xin, deputy director of the State Administration of Foreign Exchange, said recently that the current share of the internal stock and bond markets is relatively low, and the conversion to the global mainstream market index has successively converted into shares and RMB bonds, and the weight has been gradually increased.Qualified foreign institutional investors will steadily increase their domestic assets in an orderly manner.
Han Wei, Managing Director of Thai Stone Investment, said in an interview with the reporter of the International Financial News: “A-shares are becoming more and more popular with foreign capital. The fundamental reason is the gradual realization of continuous improvement of comprehensive 杭州桑拿 national strength. China has now become the world’s leadingOne of the economies.
In the context of continuous deepening reform and opening up, the Chinese capital market represented by A shares will inevitably become an important part of global asset allocation by international investors.
“” In the future, the proportion of foreign exchange funds will continue to increase. The trend and external expansion of the A-share circulation market value will continue to increase. Marketization, internationalization, and institutionalization will continue to be the main tone of future capital market development.
Guo Shiliang told this reporter that in the future, the proportion of institutional investors will continue to rise, and the market will also trigger the era of institutionalized gaming.
Scarce resources and core high-quality targets will still be the focus of foreign attention in the future.
3 Opening up and reform promote the opening up of the capital market, overseas funds, public funds, and insurance funds are the three most important holders of A-shares.The latest data show that China Stock Connect and QFII account for 2 of the market capitalization of A shares respectively.
Since 2019, the allocation of foreign industries has tended to be all-A.
According to the research report of Debon Securities, relative to the industry configuration of all A shares, the over-allocation in food and beverages has been reduced, and the under-allocation in mining and banking has been alleviated. At the same time, the industry allocation in automotive, electronics, and non-bank finance has been reduced.Increase the industry configuration in pharmaceutical biology, household appliances.
Under the new pattern of constant inflow of foreign countries and holding A stocks that exceed the size of public funds, will there be some changes in A shares?
What investment opportunities are worth watching?
The reform of the A-share market mechanism has become the main thrust of the domestic market investment style and investment philosophy in line with international standards.
According to Li Xunlei, chief economist of China and Thailand Securities, opening up and mechanism reform can promote each other: shortening, without institutional reform and improvement, the intensity and depth of opening up will be limited, and the enthusiasm for a large number of participations will be difficult to improve.Unless foreign countries must enter the country, I am afraid that they will have to “follow the customs”. In the process of reorganization and opening to the outside world, the investment behavior of foreign financial institutions and the need for supervision can promote the reform and improvement of the A-share marketization mechanism.
Many aspects of foreign influence on A shares tend to be long-term.
In terms of investment potential, Li Xunlei believes that the four aspects of deterministic premium, high index, low volatility stock investment, technology emerging industries, MSCI index and its constituent stocks deserve attention.
Han Wei told this reporter that the continuous inflow of foreign countries can not only support the development of the real economy through the Chinese capital market, but also be conducive to value investment and the promotion and expansion of long-term investment concepts in the country.
Thanks to the influx of foreign capital, information technology, medical insurance, financial services and other industries have sustainable growth potential and prices below the value of blue chip stocks will break through in the future.
4 3000-point Tug Saw Today, the two cities fluctuated in a narrow range.
Disk, transportation equipment, gold, engineering construction, transportation logistics, brewing, electronic components, electronic information industry, etc. led the rise, and aerospace, securities, telecommunications, and hotel industries led the decline.
Railway infrastructure, ETC, driverless, connected cars, consumer electronics, smart cities and other conversion stocks performed.
Recently, with the problems of Saudi Arabia ‘s oil problem in the Middle East, rising oil prices and rising pork prices, August ‘s economic data was less than expected, and other factors have affected the market to some extent.
On the whole, today the Shanghai Composite Index stands at 3000 points again, which has boosted market confidence.
Xiangcai Securities said that the market’s shock this week is normal. The mainstream technology leaders have not been affected at all, but have set a new historical high and consolidated the mainstream pattern of technology stocks.
In addition, the sub-new stocks have seen a pick-up and strengthened the earning effect, focusing on the underestimation of the performance of sub-new stocks next week.
Looking ahead, CITIC Securities said that from the perspective of the stock market, the judgment of maintaining the A-share bull market pattern remains unchanged, and the brokerage industry, technology and conflict-reversing cycle industries will all perform well.
Foreign countries will continue to overweight Chinese assets, with PE (price-earnings ratio) of less than 10 times in various industries, and leading stocks with abundant cash flow will continue to be overweighted.
In terms of allocation strategy, Tianfeng Securities stated that in the long-term dimension, it adheres to the leading consumer and technology leaders.
In the short-to-medium-term dimension, it is recommended to pay attention to three dimensions: First, the bottom of the ROE (return on equity) of the interim report is improving and is expected to continue, such as securities companies and photovoltaics.
Second, the ROE of the Interim Report is still deteriorating, but it is expected to bottom out soon, just like the wind power and automotive sectors.
The third is to benefit from the industrial chain industry that accelerates the completion of real estate, furniture, kitchen appliances, and decorative materials.