New Year four trading days, A – share market hi to no!
In such a partial bull market interpretation to the extreme moment, the relevant industry once again good news. On January 5, the Ministry of Commerce and 12 other government departments issued the Circular on Measures to Boost Key Consumption of Large Quantities and Promote the Release of Rural Consumption Potential.
The circular proposes five tasks: first, to stabilize and expand automobile consumption; Second, promote the consumption of household appliances and furniture; Third, to boost food and beverage consumption; Fourth, we need to strengthen weak areas of rural consumption. Fifth, we will strengthen policy guarantees. From the “notice” content, four industries will usher in a heavy positive. The four industries are automobile (especially new energy vehicles), home appliances, catering consumption (including alcohol, restaurants, etc.), and logistics (especially cold chain).
It is worth noting that the recent hot spot in the market is mainly concentrated in the consumption and new energy two big plates, holding chips have converged to the extreme. Some investors told brokers in China that the 2021 investment directive had been issued but did not know what to buy. But you can’t go wrong with a good stock and a good white horse. What’s more surprising is that the keyword “fund” suddenly appeared in the hot search on the evening of 5th, ranking 20th. With the release of the above notice, will “Tuantuan Cow” fly for some time?
Five initiatives to boost consumption
On November 18 last year, Premier Li Keqiang presided over an executive meeting of the State Council, urging the implementation of the Regional Comprehensive Economic Partnership (RCEP) in China according to the schedule. We will make arrangements to boost key consumption items and unleash the potential of rural consumption. To determine measures to support the development of “Internet + tourism” in line with consumption upgrading demands; We will hear reports on the reinforcement of dilapidated reservoirs, and require active expansion of effective investment to improve disaster prevention and water supply.
On January 5 this year, the Ministry of Commerce and 12 other government departments jointly issued the Circular on Measures to Boost Key Consumption of Large Quantities and Promote the Release of Rural Consumption Potential (hereinafter referred to as the Circular). The Notice puts forward five tasks:
First, we will stabilize and expand automobile consumption. We will unleash the potential of automobile consumption, encourage cities to optimize measures to limit the purchase of automobiles, and increase the number of license plates. We will launch a new round of car exchanges with the countryside, encourage rural residents in areas where conditions permit to buy trucks with engines of 3.5 tons or less and passenger vehicles with engines of 1.6 liters or less, and provide subsidies for residents to phase out cars with national emission standards no. 3 or less and buy new ones. We will improve conditions for the use of automobiles, strengthen the construction of parking lots, charging piles and other facilities, and encourage enterprises operating charging piles to appropriately reduce charging service charges. We will improve the management and services of automobiles, improve the qualifications of motor vehicle safety technical inspection institutions, encourage qualified gas stations to develop non-oil businesses, and encourage expressway service areas to enrich commercial activities and build transport travel consumption clusters.
Second, promote household appliances and furniture decoration consumption. We will activate the market for home appliances and furniture, and encourage areas where conditions permit to subsidize the elimination of old home appliances and the purchase of green smart home appliances and environment-friendly furniture. We will support the development of a system for recycling waste materials, set up proper recycling and processing centers for waste bulk commodities and recycling and transportation transfer stations, and provide support in accordance with urban public infrastructure. The restrictions on recycling vehicles for waste materials and furniture distribution vehicles entering and entering residential areas will be relaxed.
Third, we will boost food and beverage consumption. Improve relevant supporting policies to promote the development of green catering. We will encourage catering enterprises to enrich and improve their dishes and innovate their online and offline business models. We will improve food and beverage service standards, and support the promotion of quality and featured foods in a market-oriented manner.
Fourth, we will strengthen weak areas in rural consumption. We will improve the rural distribution system, promote rural consumption by expanding consumption in counties and towns, and strengthen the construction of commercial facilities in counties and towns and logistics stations to villages. We will promote the transformation and upgrading of agricultural product supply chains and improve the backbone network of agricultural product distribution. We will accelerate the development of life services in towns and townships, support the construction of a complex of life and consumption services based on rural areas and close to farmers, and turn towns and townships into regional centers that serve farmers. We will improve the rural consumption environment, establish and improve a mechanism for coordinated oversight across government departments, crack down on illegal activities such as fake and shoddy goods, false publicity, and price fraud in accordance with the law, and standardize rural market order.
Fifth, we will strengthen policy guarantees. We will improve policies and measures to benefit enterprises, and encourage local governments to encourage non-state housing leaser s to increase rent reduction and exemption through government subsidies and financial support. We will increase financial support and encourage financial institutions to provide greater financial support to market entities in the circulation industry.
Four industries windward mouth?
From the content of the Notice, the automobile (especially new energy vehicles), home appliances, catering consumption (including alcohol, restaurants, etc.), logistics (especially cold chain) four industries have benefited significantly.
From the recent market point of view, the new car and large categories of consumption rise sharply. The XNV ETF is up more than 18% in the last four days.
It is worth noting that just after the Ministry of Commerce and other ministries released favorable news, BYD, the leader of new Energy vehicle, also released the December 2020 data, which showed that its vehicle sales in December reached 563.22 million units, up 30.4% year on year. Among them, 28,841 new energy vehicles were sold in December, up 120.18% year on year. After Tesla, the new car data on the positive show again.
From the category of consumption, the recent consumer plate continues to rise. On January 5, Wuliangye surged more than 7%, as did Kweichow Moutai. In terms of the share of consumer etfs, there is still a rise from before the holiday, with an increase of about 20 million. The same is true of wine etfs. However, from the perspective of other ETFs, most of them are in the state of share decline.
From the current situation, home appliances and logistics plate increase is acceptable range, the group is not particularly obvious. But from the recent trend of Midea group and Gree Electric Appliances, has appeared more obvious head effect. Among them, midea group has reached a record high.
So what, other than policy, is driving the huddle?
“Fund” went viral
Analysts believe that the current market may be the fund issuance and building heat under the background of unabated, hot money and institutions combined effect of the result.
At one point on the evening of January 5, the word “fund” was ranked as the 20th most searched word on sina weibo. Since then, the ranking has slipped, but it still ranks 28th. This seems to mean that an era of universal base buying has arrived. Judging from the recent institutional preference, foreign investors clearly prefer computer, power equipment, food and beverage industries, and are relatively cautious on electronics, consumer services, petroleum and petrochemical industries. The style of public offering tends to value represented by consumption and finance.
It is worth noting that, in addition to the public offering to add positions, the recent financing balance continued to rise. This means that individual investors are more willing to leverage. Much of that leverage also went into large-cap white horse stocks.
Kweichow Moutai, for example, saw its financing balance increase by 6.8 billion yuan from December 15 to the last trading day before the holiday. From December 29 last year to January 4 this year, the financing balance of Ningde Times increased by nearly 1 billion yuan; But Wuliangye’s financing balance has been shrinking recently, while its share price has been rising. This means that the institutional attributes of Wuliangye may be stronger.