Editor's note:

Dr. Zheng Lei, Deputy Dean of INERI, said: “A more active performance is expected in July. At present, a large amount of new funds are entering the market. The financial sector is profitable in the early stage and the sector is rotating. There are still opportunities for some sectors that have not yet been patronized by funds. In addition, the small and medium-sized boards and ChiNext should be more active in the later stages, and the first batch of registered ChiNext IPOs may be the climax."

However, Dr. Zheng Lei also expressed concern about the current market trend. He reminded investors that there are currently four signs of vigilance. First of all, mad cows are not a phenomenon that regulators like. Secondly, the proportion of the two financial transactions in the A-share turnover has increased from 9.72% in June to 11.85% in July, and the financing leverage is relatively high. Third, there is a seesaw phenomenon between the bond market and the stock market, which may have some impact on the upcoming bond issuance. Fourth, it should be noted that market lending rates are increasing, and the central bank may gradually tighten some surplus liquidity.

Daily turnover exceeding 1.5 trillion yuan has become an important feature of the A-share market since entering this week. In this regard, Yang Delong, chief economist of Qianhai Kaiyuan Fund, who was interviewed by a reporter from Securities Daily, believes that this shows that the two cities are very active in trading. Investors have a strong willingness to enter the market. The increase in positions of domestic institutions, the inflow of foreign capital, the entry of retail funds, the opening of new funds, etc. are all sources of incremental funds in the A-share market. In the second half of the year, the A-share market will shift from a partial bull market to a full bull market.

From a specific disk perspective, on Wednesday, the Shanghai Stock Exchange Index began to rise and fall after the opening, and then gradually stabilized and rebounded and stood above the 3400 point integer mark. Both the Shanghai and Shenzhen indexes set new highs during the year. As of the close, the Shanghai Composite Index reported 3,403.44 points, an increase of 1.74%, and the Shenzhen Component Index reported 13,406.37 points, an increase of 1.84%. The total turnover of the two cities reached 154.263 billion yuan, a decrease of 11.31% from Tuesday.

A-shares in the two cities showed a general upswing pattern, with a total of 3216 stocks rising and 567 falling. In terms of industry sectors, 60 of the 61 Oriental wealth industry sectors rose, with shipbuilding (8.38%), aerospace aviation (7.95%), and brokerage trust (6.3%) leading the rise.

Table: List of Market Performance of Eastern Wealth Industry on Wednesday

Watchmaking: Zhao Ziqiang

Regarding the market trend on Wednesday, Tianxin Investment Advisor said that the afternoon index once again rose under the lead of the big financial sector, and set new highs one after another. The subject stocks have also begun to significantly strengthen, the market stocks have generally risen, and the money-making effect is hot. What is presented is a good situation in which weights are set up and the themes sing. The market will continue its upward momentum in the later stage. Now the index is not high, but it is rising a bit urgently.

"Since 1 July, it has all been blue-chip stocks. Real estate, brokerage firms, banks, and insurance have all performed to a certain extent. Among them, the performance of securities firms is extremely outstanding. On Wednesday, military industry also began to perform, including non-ferrous metals, The media have also begun to react. As a whole, it can be seen that the blue-chip stocks and strong cyclical sectors of the market have shown certain rotation characteristics, which has driven the trend of the entire market." Private equity row net future star fund manager Hu Bo said to the "Securities" Daily reporter described the trend characteristics of the short-term A-share market. He expressed his judgment to maintain the upward trend of the market.

In an interview with a reporter from Securities Daily, Jiang Junguo, general manager of Yijiu Assets, expressed that “the current market is in a relatively benign upward trend.”He believes that in addition to the short-term market upsurge, the growth, cycle and stability industries are fully blooming. Overlapping the intensive release window of performance forecasts, there are many hot spots. As long as there is no over-magnification of market transactions, the overall trend of the market will not be too problematic.

Dr. Zheng Lei, Deputy Dean of the Hong Kong International New Economic Research Institute, interviewed by a reporter from the Securities Daily said: “A more active performance is expected in July. At present, a large amount of new funds are entering the market. The financial sector is profitable in the early stage and the sector is rotating. There are still opportunities for some sectors that have not yet been patronized by funds. In addition, the small and medium-sized boards and ChiNext should be more active in the later stages, and the first batch of registered ChiNext IPOs may be the climax.”

However, Dr. Zheng Lei also expressed his concern about the current market trend. He reminded investors that there are currently four signs of vigilance. First of all, mad cows are not a phenomenon that regulators like. Secondly, the proportion of the two financial transactions in the A-share turnover has increased from 9.72% in June to 11.85% in July, and the financing leverage is relatively high. Third, there is a seesaw phenomenon between the bond market and the stock market, which may have some impact on the upcoming bond issuance. Fourth, it should be noted that market lending rates are increasing, and the central bank may gradually tighten some surplus liquidity.

In general, with the money-making effect brought about by the rise of blue chips, over-the-counter funds are expected to continue to flow in. In the context of blue-chip stocks, as long as the turnover can stabilize within a certain range, the valuation restoration market will expand in depth.

(From "Securities Daily")