Gem index fell more than 1%

The three major indexes of a shares opened high, and the three indexes in the early market fell sharply, while the gem index fell more than 1%, and the early market rose more than 1.5%; Shanghai index fell 0.61%, Shenzhen Chengzhi fell 1.08%, while traditional Chinese medicine, clothing home textile, education and other sectors were weak, while lithium and photovoltaic sectors fell sharply. Semiconductor plate keeps rising, with China core international rising by more than 18%, and crystal Rui, optical technology, minde electronics, national technology, Beijing Junzheng and so on, have risen by more than 10%. On the panel, semiconductor, mining services, communication equipment and other sectors rose in the top, while Chinese medicine, military industry and other sectors fell in the top.

Market news:

1. Liu He: small and medium-sized enterprises are good for China’s economy

This morning, the National Summit Forum on “special and special new” SMEs was held in Changsha, with the theme of “special and special new achievements in the future”. At the opening ceremony, Liu He, member of the Political Bureau of the CPC Central Committee and vice premier of the State Council, delivered an online speech. Liu he said that if small and medium-sized enterprises are good, China’s economy will be good. Small and medium-sized enterprises are the main body of the market and the main force to ensure employment. A common law is that where small and medium-sized enterprises develop well, the economy is very good. Dynamic small and medium-sized enterprises and diversified and differentiated economic ecology are the most important guarantee for China’s economic resilience. Therefore, we should firmly support the development of small and medium-sized enterprises.

2. Liu He: at present, scientific and technological innovation is not only a development problem, but also a survival problem

This morning, the National Summit Forum on “special and special new” SMEs was held in Changsha, with the theme of “special and special new achievements in the future”. At the opening ceremony, Liu He, member of the Political Bureau of the CPC Central Committee and vice premier of the State Council, delivered an online speech. Liu he said that the soul of “specialization, special and new” is innovation. At this stage of China’s economic development, scientific and technological innovation is not only a development problem, but also a survival problem. Our emphasis on “specialization and innovation” is to encourage innovation and achieve specialization, refinement and characteristics. All entrepreneurs should focus on their main business, hard work internal skills and strengthen innovation in the direction of “special and special new”, and make the enterprise a “singles champion” or “supporting expert” who master unique skills.

3. Bureau of Statistics: commodity prices continue to run at high levels, squeezing the profit space of enterprises; there are still short board weaknesses in the supply chain of industrial chain

When interpreting the profit data of industrial enterprises, Zhu Hong, Senior Statistician of the industry department of the National Bureau of statistics, said that overall, the profits of industrial enterprises recovered stably and the operating conditions continued to improve in the first half of the year. However, it should also be noted that the imbalance in the recovery of enterprise benefits still exists, the profit recovery of private, small and micro enterprises is relatively slow, the continuous high operation of commodity prices squeezes the profit space of enterprises, and there are still short board weaknesses in the industrial chain supply chain. In the next step, we should maintain the continuity, stability and sustainability of macro policies, continue to deepen the supply side structural reform, vigorously support the development of the real economy, further do a good job in ensuring supply and stabilizing prices, help enterprises solve difficulties, and promote the sustainable and healthy development of the industrial economy.

4. The total profit of state-owned enterprises increased by 1.1 times from January to June

According to the Ministry of finance, the total profit of state-owned enterprises in January June was 2388.31 billion yuan, an increase of 1.1 times year-on-year, with an average growth of 14.6% in two years. Among them, the central enterprise reached 1586.58 billion yuan, an increase of 1.0 times year-on-year, with an average growth of 14.2% in two years; Local state-owned enterprises reached 80.73 billion yuan, an increase of 1.5 times year-on-year, with an average growth of 15.4% in two years. From January to June, the total operating income of state-owned enterprises was 35414.31 billion yuan, an increase of 27.7% year-on-year ②, and an average growth of 9.6% in two years.

5. The balance of financing between the two cities increased by 2.91 billion yuan

As of July 26, the balance of the SSE’s financing was 88.4 billion yuan, an increase of 2.676 billion yuan compared with the previous trading day; The financing balance of Shenzhen Stock Exchange was reported as 783.864 billion yuan, an increase of 235 million yuan over the previous trading day; The total amount of the two markets was 1667.937 billion yuan, an increase of 2.91 billion yuan compared with the previous trading day.

6. China Automobile Association: the automobile production of 11 key enterprises in the automobile industry decreased 33% year on year in the middle of July

According to the ten day report data of 11 key automobile enterprises in the industry, China Automobile Industry Association shows that in the first and middle of July 2021, the automobile production of 11 key enterprises completed 806000 vehicles, a year-on-year decrease of 33%. Among them, the production of passenger cars decreased by 31.2% year-on-year; Commercial vehicle production decreased by 41.3% year-on-year.

Institutional view:

1. Haitong Securities: this decline will not last too long, patiently waiting for the market to stabilize

Haitong Securities pointed out that with the market falling yesterday, policy risk was released to some extent, and that the A50 Index also rose by more than 1% at night. Therefore, we don’t think the decline of this nature will last for too long, and wait patiently for the market to stabilize. In terms of operation, we suggest investors 1. To allocate the high-quality leading companies with valuation correction, each round of large-scale adjustment is the opportunity to allocate high-quality leading companies, and this time is no exception. Especially in the current interest rate continues to decline, leading companies with high dividend rate has long-term investment value. 2. As the mini LED industry chain related leading enterprises, because of the high requirements of mini LED technology and the upgrading of chip and package module, it is suggested to pay attention to the investment opportunities of leading companies in the industrial chain with relevant technical layout. 3. With the adjustment of the securities sector for a year, the overall valuation of the securities sector is at a historical low. With the real estate regulation and control and the decline of risk-free return, the trend of capital transfer to equity assets will be long-term, and the securities sector will usher in medium and long-term investment opportunities.

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