A Brief Analysis Of The "Jedi Great Counter Attack" Of The Gem

Although small and medium sized boards and gem continue to maintain a strong pattern on Friday, the trend of sustained high stagflation is more obvious from the recent trend. It is expected that the short term growth stocks market may be differentiated.

The Shanghai Composite Index closed at 3372.91 points on Friday, up 0.70%, the lowest intraday drop to 3352.15 points, the highest point to 3391.26 points.

In addition, the Shenzhen harvest index reported 11713.61 points, up 0.67%, the lowest intraday to 11654.19 points, the highest point to 11751.20 points.

At the same time, the SME board index reached 9660.26 points, up 1.43%.

The index closed at 2069.07 points, up 2.52%.

Up 0.62%, 301.04 points, the B-share index rose 0.35%, to receive 1115.12 points.

In terms of stocks, as of Friday

The CITIC first level industry index has all risen.

Among them, computer, pportation, coal index rose the top, the specific increase was 3.88%, 2.68% and 2.64%; compared with that, food and beverage, non bank finance, real estate index today lagged behind, the specific gains were 0.09%, 0.13% and 0.16% respectively.

Small cap stocks face three major short-term constraints.

First of all, as the blue chips of the main board get capital attention again, and the new three board market of homogeneity continues to boom, small cap growth stocks face some pressure of fund diversion.

Secondly, after the continuous rise this year, the valuation of small cap stocks has further increased, and in the context of the overall economic downturn, the extent to which the expected growth of new industries will not be realized is uncertain.

Finally, in recent trading days, the SME board index and the gem index have shown signs of rising fatigue. Although it is not clear that the relevant index has peaked, at least it shows that its short-term upward momentum is not enough.

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On Friday morning, the market was led by financial stocks such as banks and brokerages, but growth stocks began to spread again and again.

At the close, the Shanghai Composite Index closed at 3372.91 points, or 0.70%, rose 23.59 points, with a turnover of 374 billion. Shenzhen card index closed at 11713.61 points, or 0.67%, up 78.02 points, with a turnover of 297 billion 800 million.

The gem index closed at 2069.07 points, or 2.52%, and hit 2070.95 points in the session.

On the disk, civil aviation airports, Inner Mongolia, network security, domestic software, big data and other sectors were among the top gainers; insurance, banking and a few other industries fell.

British big Securities believes that the big and small index will rise in 2015, but the relative gains of different stages will be different, but the main board investors should step in the rhythm of the market.

From the valuation point of view, the gem price earnings ratio is hovering around 80 times, and the SME board is about 60 times.

With the gradual formation of registration system and delisting mechanism and the opening of Shanghai and Hong Kong links, the A share market will be integrated into the international financial system from various aspects such as valuation system, trading habits and investment style.

Small cap stocks, junk stocks and subject stocks may not start to return to value without performance support. Gem growth stocks will be affected, but real high-quality stocks will stand out.