SMM7 10 month news: stimulated by Sino-US trade news, market sentiment picked up sharply, Science and Technology Innovation Board main bid, Huawei concept and other subject stocks strengthened, brokerage stocks again active to drive the index continued to rise. Intellectual property rights, chemical fertilizers, domestic chips, domestic software sectors also rose among the top. Gold, electronic cigarettes, rare earth permanent magnets and other plates led the decline in the two cities. By midday, the Prev index was down 0.02 per cent at 2927.68 points, the Shenzhen Composite Index was down 0.02 per cent at 9196.86 points, and the gem index was down 0.01 per cent at 1517.69 points.

Review of abnormal movement

Science and Technology Innovation Board continued to be active in the concept of benchmarking, three super new materials, Zhiyun shares one word board, combined optoelectronics rose 8%, Dailer new materials, brilliant science and technology have opened up one after another.

Huawei concept was active in early trading, Zhiyun shares, United Optoelectronics, Chengmai Technology collectively rose, Shida Group rose 5%, Jinzhi Technology rose slightly.

The brokerage plate weakened unilaterally, Hualin Securities fell 4%, Zhongyuan Securities, Great Wall Securities, Oriental Securities and Tianfeng Securities fell one after another.

The plate of large aircraft changed, the limit of aviation science and technology rose and the flight control, Hongdu aviation and space communications strengthened one after another.

Elevator plate performance is active, happy elevator limit, plum wheel elevator rose 5%, Kangli elevator, Shanghai and Nanjing shares rose one after another.

Brokerage stocks are active again, Guoyuan Securities, Caitong Securities are up more than 4%, Hua'an Securities, Nanjing Securities, Guotai Junan, Guangfa Securities and other stocks followed the trend higher

Message surface

[leaders of the High-level Economic and Trade consultations between China and the United States talk]

On the evening of 9 July, Liu he, member of the political Bureau of the CPC Central Committee, vice premier of the State Council, and Chinese leader of the China-US Comprehensive Economic Dialogue, called US Trade Representative Lettershize and Finance Minister Mnuchin to exchange views on the implementation of the consensus of the Osaka meeting between the two heads of state. Zhong Shan, Minister of Commerce, took part in the call. (CCTV News)

[June CPI rose 2.7 per cent, PPI was flat, pork prices rose 21.1 per cent from a year earlier]

China's consumer price (CPI) rose 2.7 per cent in June from a year earlier, compared with 2.7 per cent, according to the Bureau of Statistics. Producer price (PPI) was flat in June from a year earlier, with a forecast of 0.2 per cent, compared with a previous value of 0.6 per cent. In June, the price of fresh fruit rose 5.1% nationwide, and the current price level is at an all-time high. Fresh fruit prices rose 42.7% from a year earlier, affecting a 0.71% increase in CPI. In June, pork prices rose 21.1% from a year earlier, an increase of 2.9% over the previous month, affecting CPI by about 0.45% and pork prices by 3.6% from a month earlier, affecting CPI by about 0.09%. Fresh vegetable prices rose 4.2%, down 9.1% from the previous month, affecting CPI gains of about 0.10%.

[the wording of the central bank announcement has changed and the reopening of open market operations is not far away]

On July 10, the central bank's reverse repo operation continued to shut down, and the central bank's reverse repo has been suspended for 13 working days since June 24. However, it is worth noting that the wording of today's public market business trading announcement has changed, or indicates that the day of the resumption of open market operations is not far off. The total amount of liquidity in the banking system is at a reasonable and adequate level and reverse repurchase operations will not be carried out on July 10, 2019, according to today's public market business transaction announcement. For the previous seven working days, the central bank has said the total amount of liquidity is at a high level.

Institutional point of view

Looking to the future, Everbright Securities pointed out that the upward logic of the market has not been destroyed, but there is a certain marginal resistance, the rising pace of the future market may slow down, the performance of the third quarter is still expected. In terms of industry configuration, there may be game opportunities in the cycle, and the overall low allocation is still recommended.

Soochow Securities pointed out that in terms of the trend in July, the G-20 meeting on 29 June made positive progress, China and the United States resumed economic and trade consultations, and the US side said that it would no longer impose new tariffs on Chinese exports, and that the economic and trade teams of the two countries would discuss specific issues. As one of the key factors affecting the market risk preference in the second quarter, the mitigation of Sino-US economic and trade frictions will help to strengthen the rising trend of the market. At the same time, the seasonal factors of the market's habitual decline in June receded. On the whole, in July, the time window for the market to rise gradually opened.

Guojin Securities said that A-share investors will still adhere to two "premium" principles in industry allocation and individual stock selection: a "performance certainty premium" to the plate and a "liquidity premium" to individual stocks with a market capitalization. This style is difficult to see a substantial change in the short term. As a result, the industry is still dominated by the financial and consumer sectors, and the weak cycle and policy dividends of new energy (photovoltaic), military industry, environmental protection sector is also recommended rating.

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