North on the capital early to take advantage of the sharp fall during a large sweep of goods, half an hour on the net inflow of nearly 5 billion. After that, under the leadership of Moutai, China and other leading stocks, the group stocks rebounded comprehensively!
The Shanghai composite index
Refers to the gem
In early trading today, A-shares plunged after yesterday’s decline, with the Shanghai Composite Index tumbling more than 3% and at one point falling below 3400, while the Growth Enterprise Index tumbled more than 4%. Later, the weighted blue chip stocks led by Kweichow Moutai stabilized and rebounded strongly, and star stocks such as China International Group, Wuliangye and Gree took the lead in turning red, thus forming a V-shaped reversal trend in the market. As of the noon close, the Shanghai index, ChiNext index only slightly down, while the Shanghai 300 and Shanghai 50 strong red. North funds also took the opportunity to copy the bottom, as of the noon close, a net inflow of about 3.7 billion yuan.
After the Spring Festival, the group stocks continued to fall sharply, driving the market adjustment, and even the GEM index fell more than 20%, falling into a technical bear market. This is mainly because last year, as the money-making effect spread, the stock price of the group rose sharply in the euphoria of the market, and it has become far out of line with the actual intrinsic value of the company. If the dynamic P/E ratio at the peak of Ningde era exceeds 200 times, even after a sharp correction, the current P/E ratio is still as high as more than 160 times, and the current P/E ratio of China Securities, BYD, WuXi AppTec and other group stocks is also more than 100 times.
When the market fluctuates slightly, some rational investors will make high selling action, and the stock price of the group shares will fall, which is also reasonable. For example, Beihang Capital continues to significantly reduce its holdings of liquor stocks, especially the leading stocks of Kweichow Moutai and Wuliangye. And the current decline is the most tragic early rise of the largest plate, such as the three male liquor, photovoltaic, new energy car plate.
According to Wind, baijiu stocks overall fell about 30% after the Lunar New Year holiday, far more than the decline in the broader market over the same period. Among them, Drunkard Liquor and Laobaigan Liquor fell by nearly 50% at the highest; Kweichow Moutai, the leading stock, fell by more than 700 yuan per share, and its market value shrank by more than 900 billion yuan. Beijing Shanghai Capital has reduced its holdings by about 7.3 million shares in the past year and cashed out about 16 billion yuan, hitting new lows in recent years repeatedly. Wuliangye suffered an even bigger cut in its holdings by Beijing’s funds, which are now less than half their peak value.
Although liquor shares recently fell endless, but the institution is still firmly optimistic. Zhongtai securities said that the current share price and liquor plate fundamentals plainly, namely the adjustment is given priority to with kill valuation, and there is a limit to valuations downward, maotai, wuliangye wine future 15% 20% annualized growth rising uncertainty and the market for fine wines to enhance cognition, on the basis of the current value corresponding to about 40, 2021-50 times, in the long term has a margin of safety. In the future, it can be digested continuously through steady growth of performance. At the same time, the fundamentals of the liquor sector in the future may continue to exceed expectations due to the rising price of famous liquor and the catalysis of spring sugar. Standing at the current point, it is suggested to add high-end liquor and high-quality sub-high-end liquor.
After overhaul, the main funding has obvious bottom action, not only today’s north inverse city net inflow of funds, in the process of an exodus from the billboard yesterday also can see the main funds in the bottom, byd, aerospace electrical appliances more than drop stop stocks yesterday in north inverse city rush to raise capital and institutional capital.
Many well-known institutions at home and abroad also continue to be optimistic about the group and A – share market. CICC believes that the recent adjustment of heavy positions in institutions is relatively obvious. From the perspective of the healthy development of the capital market, it is normal for some stocks with high valuations to return to a more rational direction, and the market does not need to worry too much.
UBS also said in a conference call yesterday that the group shares have been adjusting recently, but the business conditions of these companies are healthy and this is a buying opportunity. Because stocks fluctuate, but the business of a company doesn’t fluctuate like stocks do. Small and medium-sized stocks because of the overall environment recovery, can usher in a wave of market, but the position of small and medium-sized companies in the track decided and leading companies are not the same. The core of a business is profitability. If the pricing deviates a little and you get back to the normal track, you don’t have to worry too much about it. The biggest profit in owning a stock is because you’ve held it for ten years, at least five years, not one month, three months.
For the Chinese stock market in 2021, UBS appears more optimistic, predicted that by the end of 2021 AH will hit a record high, which Shanghai and Shenzhen 300 will reach 6100 points (as of today’s midday close, Shanghai and Shenzhen 300 to close 5081 points), the Hang Seng Index 36000 points (midday close 28989 points), the current point from the forecast point are more than 20% space.
article links：Half an hour of foreign capital crazy buying 5 billion!
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