Governing The Country By Law Will Bring A Long-Term Institutional Dividend To The Stock Market.

This week, although the market finally held the 2300 point integer mark, the two cities recorded two successive overshadows, while the bulk stocks began to decline continuously, and the characteristics of the weak market have already appeared.

What worries the market is that the total turnover of two cities in the whole week is 1 trillion and 450 billion, which has shrunk by nearly 30% compared with last week.

A share market shock time or lengthening, the Shanghai Composite Index 2250-2280 points interval will be an important support area for the callback.

Recently, the A share market has experienced several important events, such as intensive economic data disclosure, the Fourth Plenary Session of the fourth plenary session, and the purchase of new shares in October.

On the whole, the macroeconomic situation has stabilized, but there is still a lack of sustained action, which has limited impact on the short and medium term trend of the stock market.

The Fourth Plenary Session of the fourth plenary session has been closed, and the rule of law will bring long-term stock market.

We should reduce the risk premium of the market and enhance the investment value of the capital market, but the real impact of the short and medium term on the stock market is not obvious.

With the last batch of next Monday.

The medium and short-term effects of the above factors have been basically digested.

In the coming month, the opening of Shanghai and Hong Kong through may be officially opened, and the market will usher in a vacuum period of major events.

Three aspects of the market need to be focused on: first, changes in the short-term and medium term funds; two, the participation of investors; and three, the valuation level.

From a financial point of view, the 7 day repo rate rose sharply on Friday, or indicated that there might be a significant end effect at the end of October. At the same time, after November, the year-end effect of the capital side may gradually emerge.

From the perspective of participants' sentiment, investors are gradually overcoming from the excessive excitement in the early stage to calm and even cautious.

From two aspects, the short term

Shock finishing or running the main keynote.

However, judging from the valuation point of view, at present, a large number of blue chip stocks are still very low in valuation level. The average price earnings ratio of Shanghai market is only 11.23 times, which will close down the Shanghai stock index and give strong support to the market.

Although the A share market adjustment cycle will lengthen, and the stock index callback space is not large, but does not mean that the callback space of stocks is small.

In the next one to two months, the small cap stocks will also face many pressures: first, the valuation pressure after the disclosure of the three quarterly report; two, the pressure of profit making at the end of the year-end cash settlement and the selling pressure of the large and small non shareholders; the three is the pressure to expand the registration system and the large number of new shares after the start of next year.

On the operation, it is suggested that investors should pay attention to controlling the overall position and continue to reduce the theme stocks with no performance support.

The current market readjustment is a good opportunity for investors to tap potential varieties at the next stage.

From a longer perspective, under the impetus of comprehensive deepening reform, the market will usher in another wave of investment opportunities after the completion of the phased callback.

The return of the quality company's stock price will provide good investment opportunities.

It is possible to excavate from three aspects: first, the industrial sectors with reasonable valuation and obvious long-term investment value, such as medicine, high-speed railway, securities dealers, insurance and other sectors; two, the strategic industries that conform to the domestic economic pformation, such as information security, military industry, new energy vehicles, and so on; three, the small and medium-sized stocks with reasonable valuation, sustainable growth and high distribution potential.