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[stock market review] the two markets fluctuated and the Shanghai index turned red at the end of the day, led by the agriculture and aquaculture sector.
Oct 21,2019 15:58CST
translation
Source:SMM
The content below was translated by Tencent automatically for reference.

SMM10 21: the morning of the two markets up and down, the Prev opened lower, the three major stock indexes fluctuated lower. On the disk, the gem reorganization concept plate performance is strong, the digital currency plate falls, the science and technology stock collective pullback, the brokerage plate performance is weak, the bank, animal health, pig and so on plate performance is active, the logistics plate changes pull up. In the afternoon, the two markets tumbled lower, with the index falling more than 1% at one point, and the Prev index turned red. On the disk, secondary stocks continue to weaken, near the end of the day, block chain plate gradually warmed up, oil mining plate continued to pull up, stocks fell more or less. By the end of the day, the Prev index closed at 2939.62 points, up 0.05 per cent; the Swift Index closed at 1644.51 points, down 0.25 per cent; and the Shenzhen Composite Index closed at 9553.57 points, up 0.21 per cent.

Plates and individual stocks

The Securities Regulatory Commission (CSRC) issued a decision on amending the Administrative measures for the reorganization of Major assets of listed companies on the 18th, which shall enter into force as of the date of promulgation. With regard to the scope of "high-tech industries and strategic emerging industries in line with the national strategy", the CSRC intends not to specifically define them in the reorganization measures, but to guide the Shenzhen Stock Exchange to clarify the relevant catalogue guidelines according to the practical situation. Cai Jianchun, director of the regulatory department of listed companies of the Securities Regulatory Commission, said: "personally, I think that the industries contained in the gem backdoor should be larger than the scope determined by the listing of gem." Science and Technology Innovation Board stressed that hard science and technology, strategic emerging industries are not necessarily hard science and technology, its extension will be greater. "

Gem reorganization concept plate is active, as of the close, Jifeng Technology (4.130,0.38,10.13%), Tongda shares (17.440,1.59,10.03%), Senyuan shares (4.290,0.39,10.00%) and other stocks rose by the limit, Bang Xun Technology (5.600,0.25,4.67%), Longyuan Technology (4.670,0.18,4.01%) and other stocks rose one after another.

Plate capital flow

Net inflow of the main force into the top five sectors of the industry: banking, processing of agricultural products, real estate development, aquaculture, insurance and others

Main net inflow into the top five conceptual plates: pork, chicken farming, land circulation, equity banking, automotive electronics

The main net inflow into the top 10 stocks: Zhengbang Science and Technology, Vanke A, Haikang Weiwei, Industrial and Commercial Bank of China, China Life Insurance, New Hope, Midea, Wen's shares, Industrial Bank, Ping an Bank

Abnormal review

Securities stocks fell sharply at the start of trading, Tianfeng Securities set bidding fell by the limit, Huatai Securities fell more than 6%, Huachuang Yangan, CITIC Construction Investment, Hongta Securities and so on.

The concept of gem reorganization is strong, Tianlong Optoelectronics, Tianxiang Environment, Ji Yao Holdings and so on.

Aquaculture plate quickly pulled up, Zhengbang science and technology rose 5%, Tianbang shares, new hope, Muyuan shares and other rapid strength

The concept of digital currency fell, Ranco science and technology approached the limit, intelligence shares, Hanwei technology, Omar appliances and so on fell sharply

The second new stock plate fell sharply, Yu pupil optics, worth buying fell by the limit one after another, Wufang Optoelectronics, Haineng Industry and so on have weakened one after another.

The concept of semiconductors and components strengthened, Xiaocheng science and technology rose in a straight line, Zhaoyi Innovation, Beijing Junzheng, Shanghai Beiling followed the rise.

The concept of medical devices continued to weaken, Kelitai, Guangzheng Group, Dabo Medical has dropped by the limit, Zhaoyan new drugs, Ed Biology and so on.

Animal vaccine plate continued to pull up, Tianbang stock touch plate, Plaike rose nearly 9%, Chinese animal husbandry shares, blue biology, biological shares, Dabei Nong and so on.

Logistics plate pulled up, flying force reached the limit, Yuantong express rose more than 7%, Hongchuan wisdom, Shunfeng holding and so on.

Egg futures rose by the limit, related concept stocks rose sharply, probiotics shares rose 5.21%, Minhe shares rose 4.48%, Wen shares rose 4.13%, Lihua shares rose 3.83%.

The oil mining industry continued to pull up, Jinling mining rose more than 7%, Hainan mining, HTC mining, Guangdong and Guangxi shares rose

Message surface

[the standing Committee of the National people's Congress will deliberate a number of important draft laws]

The 14th meeting of the standing Committee of the 13th National people's Congress (NPC) will be held in Beijing from today to 26. The meeting of chairmen recommended that the 14th meeting of the standing Committee consider the draft decision of the State Council on authorizing the State Council to temporarily adjust and implement the relevant legal provisions in the free trade pilot area, and the draft decision on authorizing the Macao Special Administrative region to exercise jurisdiction over the Australian port area and related extension areas of the Hengqin Port; To examine the report of the State Council on speeding up the transformation and upgrading of foreign trade and promoting the high-quality development of trade, the comprehensive report on the management of state-owned assets in 2018 and the special report on the management of state-owned assets in the administrative sector throughout the country in 2018.

[third offer for the new version of LPR: 4.2 per cent for one year; 4.2 per cent last time]

October LPR quotation: 1-year LPR is 4.20%, previous 1-year LPR is 4.20%, 5-year quotation is LPR is 4.85%, previous 5-year LPR is 4.85%. In August this year, the central bank carried out the LPR quotation mechanism reform: after the reform, the LPR takes MLF as the reference, and the loan interest rate anchors the LPR. After the reform of the quotation mechanism, LPR is formed by adding points to the open market operating interest rate (mainly refers to MLF). In practice, LPR interest rate is not only related to MLF, but also closely related to bank capital cost, market interest rate and so on.

[Bureau of Statistics: price increase in commercial housing sales in September 2019 is basically stable]

In September, all localities resolutely implemented the arrangements of the CPC Central Committee and the State Council, adhered to the position of "housing and living without speculation," and further implemented the long-term management mechanism of real estate. According to preliminary estimates, the sales prices of new commercial housing in four first-tier cities rose 0.4 percent from the previous month, an increase of 0.1 percentage points from the previous month. Of these, Beijing and Guangzhou were flat, while Shanghai and Shenzhen rose 0.5 per cent and 1.2 per cent, respectively. The price of second-hand home sales rose 0.3% from a month earlier to flat last month. Of this total, Beijing and Guangzhou fell 0.5% and 0.3% respectively, while Shanghai and Shenzhen rose 0.6% and 1.3%, respectively. (national Bureau of Statistics)

[Jin Penghui, headquarters of the Central Bank in Shanghai: exploring the establishment of an equity trading platform in the new area near Hong Kong]

Jin Penghui, deputy director of the Shanghai headquarters of the people's Bank of China and governor of the Shanghai Branch, recently pointed out in an article in China Finance magazine that he has made greater efforts to support the construction of a cutting-edge industrial system and improve the modern financial services system in the new areas near Hong Kong. Will explore the establishment of equity trading platform in the new area, and vigorously develop equity financing. We will promote central financial liberalization measures to take the lead in landing in the new areas, and encourage the establishment of foreign-owned securities companies, fund companies, futures companies, money brokerage companies, financial management companies, financial technology companies, and so on. Explore the launch of new RMB financial products and financial derivatives.

[Bureau of Statistics: price increase in commercial housing sales in September 2019 is basically stable]

In September, all localities resolutely implemented the arrangements of the CPC Central Committee and the State Council, adhered to the position of "housing and living without speculation," and further implemented the long-term management mechanism of real estate. According to preliminary estimates, the sales prices of new commercial housing in four first-tier cities rose 0.4 percent from the previous month, an increase of 0.1 percentage points from the previous month. Of these, Beijing and Guangzhou were flat, while Shanghai and Shenzhen rose 0.5 per cent and 1.2 per cent, respectively. The price of second-hand home sales rose 0.3% from a month earlier to flat last month. Of this total, Beijing and Guangzhou fell 0.5% and 0.3% respectively, while Shanghai and Shenzhen rose 0.6% and 1.3%, respectively. (national Bureau of Statistics)

[comment on the front page of China News: accelerated release of dividends from institutional optimization and intensive landing capital market reform]

From allowing the gem to restructure and list, to promoting the gem pilot registration system. In the near future, the CSRC has continuously released signals of deepening reform, a number of regulatory systems have "ice-breaking" significance, and the supply of new systems will not rise at sunrise. It can be expected that in the process of comprehensively deepening the reform of the capital market, the system optimization characterized by marketization and rule of law will enter the intensive landing period, and the dividend of capital market reform will be released quickly. (China Securities News)

[NDRC: views on the implementation of the Deep Integration of Advanced Manufacturing Industry and Modern Service Industry to be issued]

Yuan Da, director of the Policy Research Office of the National Development and Reform Commission, said on the 21st that he would deepen the integration of the service industry and the manufacturing industry and help build a powerful manufacturing country. On the one hand, we should build the industrial Internet and support leading enterprises, backbone enterprises and specialized new enterprises to change from tangible product providers to "product + service" providers; on the other hand, support platform enterprises by virtue of their technology, management, sales channels and other advantages, extend to the manufacturing industry along the industrial chain. In the near future, the CPC Committee will work with 14 departments to issue the "opinions on the implementation of the Deep Integration of Advanced Manufacturing Industry and Modern Service Industry." (first Finance and Economics)

Institutional point of view

Citic Securities: monthly level rebound is just slowing down, the next month is still a good opportunity to configure

The third quarter GDP data once again lowered the market's expectations of the economy and policy support to the "freezing point", triggering a market adjustment. However, GDP growth hitting the policy bottom line will in turn accelerate the comprehensive development of a wide range of policies, and the reform of the capital markets themselves is expected to continue to exceed expectations in the event of a stalemate in monetary and fiscal means, and needs to be focused on.

The probability of enterprise profit growth reached the bottom in the third quarter, and then it is expected to be the gap period of economic data and the intensive landing period of policy. The allocation of funds will choose the opportunity to increase their holdings or adjust the structure rather than continue to flow out. The drop in market expectations to the "freezing point" only affects the pace of the rebound, not the trend. Maintain the view of "monthly level rebound" and recommend that we continue to lay out low valuations and benefit from the allocation of varieties that have stabilized the economy.

Haitong Securities: the initial return run is not over, the end of the year and the beginning of the year is a window period

1 the Shanghai Composite Index has not risen in ten years related to the compilation of the index, the whole A 10-year cumulative increase of 57%, the 2008 low annualized increase of 11.7%, in line with the annualized growth rate of nominal GDP, the stock market has long been determined by the fundamentals.

Looking forward to one year, the Shanghai Composite Index near 2733 is the starting point of the second wave of bull market rise, corresponding to the wave theory of the three waves, the logic is that corporate profits bottom up, the economy is flat profit.

3 the initial turning back run is not over, the market acceleration needs to confirm the fundamentals and policy orientation, the end of the year and the beginning of the year is a window period, banks start first, medium-term science and technology and securities firms are better.

Citic Construction Investment Securities: the market will continue to slow cow volatility market

The downward pressure on the economy has increased, and steady growth is expected to rise. Citic Construction Securities expects to report corporate earnings in the third quarter of 2019 will become a stage low, Q4 corporate profits are expected to pick up. But rising domestic inflation will continue to hinder lower interest rates, expectations of a Fed rate cut will rise again, Brexit will be delayed and the external environment will become more uncertain.

The market will continue to slow cow shock market, still bullish on low valuation, excellent performance, good cash flow plate. Follow-up continue to pay attention to the changes in interest rates, medium and long-term still recommend the main line of science and technology and consumption of the main line, it is recommended to pay attention to science and technology 50 and consumption 50 as the representative of the

Xingye strategy said that it is normal for the market to fluctuate, and that there will be difficulties, twists and turns and fluctuations in the "advance into the Dabie Mountains 2.0" market, which will shift from strategic defense to strategic offense. it will not be achieved overnight, win in one battle, and be flat in one horse. On the whole, the internal and external warm wind continues, the risk preference increases, the liquidity environment is loose, and the strategic offensive period continues. It is suggested that investors should maintain strategic optimism, positive layout, distinguish false things, retain the real things, and choose carefully. Grasp the financial and real estate leaders such as stagflation, high dividend bond varieties, great innovation and technology growth attack elastic direction and so on.

Guangfa Securities: a shares are difficult to overcome "between warm and cold"

A shares into the "profit arc bottom + stable growth limit," the intersection period of "warm and cold." Financial and economic data released last week exceeded expectations, and the double fall in stocks and bonds reflected the logic of "quasi-stagflation". Although "pig inflation" is false inflation, it is still a constraint on monetary policy. In the decision-making of investors, the rising liquidity constraints is the core contradiction of the current A shares. The financial and economic data have compressed the imagination space of stable growth and increasing code. "the fluctuations caused by non-core contradictions should be used to make core decisions."

China Merchants Securities: the market will remain relatively low volatility

The market has been in a state of consolidation over the past month. Economic and financial data are basically in line with expectations. GDP growth further down, CPI broke 3, new social finance growth rate remained low. This combination of macro variables makes the policy into a wait-and-see state. The fourth Plenary session of the 19th CPC Central Committee and the third quarter Politburo meeting may be held at the end of October, from which the market may find new breakthroughs.

The current market will still maintain a relatively low volatility state, investors can consider changing investment ideas, layout in the coming year.

Guosheng Securities pointed out that the probability that the economy will continue to fall sharply in the fourth quarter is small, and the probability is resilient. The release of the subsequent pre-policy effect and the further increase of the bottom policy are expected to continue to support economic growth. Investment strategy suggests that we should pay attention to the main line of performance, adhere to the core assets for a long time, can focus on the main line of performance for three quarters, pay attention to wind power, photovoltaic, semiconductors, cars and other plates.

Hualong Securities believes that the fourth quarter industry allocation focus on three main lines: first, benefit from the inventory cycle of manufacturing; second, benefit from the technology cycle of technology stocks; third, profit valuation matching blue chips. Strategic positioning, domestic substitution, safety and controllable, cost opportunities are the logic of the medium-and long-term sustained performance of science and technology concept stocks; manufacturing profit inflection point will be present, there will be a rebound in the economy, pay attention to electronics, computers, machinery, and so on; non-bank finance, medicine, real estate and other profits and valuations match.

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