The three major A-share indexes closed up collectively today (7th), among which the Shanghai Stock Index rose 0.66% to close at 3553.72 points; the Shenzhen Component Index rose 1.86% to close at 1,4940.05 points; the ChiNext Index showed a strong trend, with a closing gain of 3.57% and recovered. 3400 points integer mark, closing at 3409.59 points. The turnover of the two cities exceeded one trillion yuan, reaching 1.05 trillion yuan today. The northbound funds bought 4.373 billion yuan today. The industry sector rose more and fell less, and lithium battery concept stocks set off a daily limit wave. 20 stocks rose from 10% to 20%, and the lithium battery index rose 3%.
In response to the market outlook, Soochow Securities said that short-term structure is more important than positions. In the short term, there is no obvious marginal change in liquidity and fundamentals. It is judged that the market will still be in a turbulent pattern in July. The current allocation focus is still on positions, and the growth style is expected to continue until early August.
West China Securities believes that market systemic risks are limited, and it is expected that A shares will still have the characteristics of “structural market”. 1) At the overseas level, it is difficult for the Fed to exceed expectations in the short-term; 2) A-share interim report corporate earnings are still on the upward trend. A-share ROE has continued to improve since it bottomed out in the first quarter of 2020. The growth rate of corporate capital expenditure has increased significantly. The growth rate has exceeded double digits for four consecutive quarters. In the second quarter, benefiting from the upward PPI, the upstream resource product industry performance is expected to benefit. A shares Corporate profits are expected to continue to maintain a relatively high growth rate; 3) At the valuation level, the valuation of A shares is in a reasonable range and the overall market risk is limited.
According to the analysis of CITIC Construction Investment Securities, looking forward to the market outlook, the market will still maintain a state of range fluctuations, and the overall upward trend of fluctuations will continue, but there is little opportunity for breakthroughs in the short term and fluctuations will increase. Domestically, the economy was in a marginal decline in the second quarter, and there was no basis for systemic improvement. After the callback, the market will rebound from April to June. Investors once again bought advantage industries such as new energy vehicles, semiconductors, photovoltaics, and pharmaceuticals on dips.
China Merchants Securities said that in July, the main broad-based index is expected to still show narrow fluctuations, and the market is dominated by structural opportunities. On the whole, investors will focus on the semi-annual report to exceed expectations, and the three-quarter report will continue to lay out and adjust the position. The prosperity of China’s industrial products sector that benefits from the recovery of global industrial production is expected to continue. In terms of style, since the beginning of this year, there is no shortage of high growth, and investment has begun to dig out from small and medium-sized market capitalization companies with better management and good performance. The layout may continue in the next quarter.
Industrial Securities predicts that there will be no systemic risks in the market as a whole in July, looking for novelty in the ordinary, and structural opportunities are still exciting, especially the “little giants” of science and technology who have exceeded expectations and lacked market attention around the interim report. 1) The macro is flat, the market is unpredictable, and the short-term shock is a good opportunity to build a long-term business based on long-term logic. 2) Configuration level: Growth is still the core line of recommendation, but more attention is paid to cost performance, and more attention is paid to the direction and individual stocks with better odds, especially the “small and beautiful” science and technology giants with insufficient market attention.
Reprint indicated source：Spark Global Limited information