Mid Term Rally Is Expected To Rebound

Institutions: short and medium term A shares will not repeat the "stock disaster" mode.

Yesterday, when the government came to the rescue market for stability, it was yesterday.

Ushered in the biggest decline since the market rebound in July 9th, the Shanghai stock index fell 8.48%, the largest single day decline since March 2007, the drop point exceeded 345 points, down to 3700 points.

The main index of Shenzhen stock market also fell by more than 7%.

All sectors and conceptual plates fell, with nearly 1800 stocks falling.

On the whole, the market is hard to keep on rebounding under the pressure of profit escapes and sell outs. Investors should be cautious but not too pessimistic in the short term, because the environment is still stable. At this time, it is hard to make a big difference. The two dip may be a good opportunity for the company.

Shanghai index hit its biggest one-day drop in eight years

The Shanghai stock index opened at 3985.57 on Monday, lower than last Friday's closing price of 4070.91 points, followed by a concussion upward decline narrowed, the highest hit 4051.16 points, but midday return to the downtrend, afternoon decline gradually expanded, the late market is diving.

Even the most resistant state asset reform concept and military related sector are all turning green.

At the close, the Shanghai Composite Index fell 345.35 points to 3725.56 points, or 8.48%, and the Shenzhen stock index dropped 7.59% to 12493.05 points.

Down 7.76% and 7.40% respectively, respectively, at 8370.61 and 2683.45.

The turnover of Shanghai and Shenzhen two cities was 721 billion 298 million yuan and 667 billion 695 million yuan respectively, and the ring ratio was further narrowed.

Industry, yesterday, the 28 Shen Yi industries fell by more than 5%, of which light manufacturing, leisure services and integrated industries did not fall by more than 6%, while non bank financial losses reached 9.62%, which shows that the stocks were almost all down; the decline in building decoration, defense and military industry, mining, electronics, automobiles and construction materials all exceeded 8%.

In terms of concept, the original state-owned assets reform, satellite navigation and online tourism and other sectors maintain the red disk, but it is not against the deepening of the late fall and the whole line turns green.

The drop is all over 4%, and the drop of the UAV, the Yangtze River economic belt and mobile resale is less than 5%, while the fuel cell, Tianjin free trade area, chip localization, IOE, smart IC card and oil and gas reform are all more than 9%.

The concept of state assets reform dropped by 6.17%.

In terms of stocks, only 77 stocks in A shares rose yesterday, and up to 2172 stocks fell.

Among them, the number of stocks falling by more than 5% reached 2077, indicating that the overall adjustment was large.

Among them, more than 9.9% of the stocks fell to 1818, with 1800 close to the limit, while only 25 stocks were trading.

It is worth noting that most of the heavyweights such as China Petroleum and CITIC Bank closed down yesterday.

Two times, bottom up, be careful not to be pessimistic.

After a continuous rebound, the market has picked up quite a bit.

The stock index hit 4184 points from the lowest 3373 points to the highest level on Friday, rebounded over 24%, and the gem index gradually rebounded from the lowest 2304, hitting 3014 on Friday and rebounding nearly 30%.

From the perspective of market mentality, during the period, a lot of funds have been profited from the early copy of the fund, and the significant slowdown in the short-term rise has made this part of the capital eager to withdraw.

At the same time, the index has rebounded to the intensive areas of chips in July 1st. Some of the funds are in the unwinding or close to unwinding areas. After many days, the part of the funds is stronger than the market.

In particular, faced with the stagnation of blue chips and the relatively high valuation of growth stocks, this part of the fund has a strong desire to leave the market.

Moreover, the fund needs urgently to build better positions, which makes the market fluctuate fiercely.

From the economic fundamentals, the growth rate of electricity generation in the first half of the year, the new PMI in July and the real estate sales in July all showed that the economy was still unstable, and the policy still needs to be relaxed.

At the stage of confidence recovery, these data bring a certain degree of pressure to the market.

Not only that, the message is also intertwined.

Societe Generale Securities pointed out that although the three quarter's stability is the most definite rebound time window, the allocation of capital to leverage, valuation bubble and so on will cause frequent market shocks and differentiation.

Huatai Securities said that after a short period of rapid rise, the market is facing adjustment in the short term, and the risk appetite has declined.

But investors need not be too pessimistic.

At present, the market recovery has not yet been completed under the stable environment, and the index has a significantly lower downside probability. The time for investors to have a good layout at the bottom of the two survey or the appearance of the market is bigger in the early stage.

After the callback, the upward trend of the concussion will not change.

Societe Generale Securities believes that the short and medium term A share market will not go back to the mad bull market, nor will it repeat the "stock disaster" mode, but will absorb pressure and problems in the concussion.

Huatai Securities also pointed out that the mid-term rebound can be expected, and the market is gradually shifting from startling to startling.