A Shares Continue To Decline, Diving In Two Cities In The Afternoon

The first trading day of August,

Continued downward trend, the two cities in the afternoon diving, stock index fell more than 3%, two cities 2500 shares fell, nearly 300 shares limit.

Banks and insurance sectors are turning against the market.

As of press release, stock index fell 2.68% to 3565.48 points.

According to the analysis, A shares are mainly trapped in three big mountains:

First, in July, the official PMI was 50, with a forecast of 50.1, and the former value 50.2.PMI continued to decline, indicating that the fundamentals of the economy were not optimistic, leading to the fact that many parties did not dare to make a big job. Secondly, as a lever of early leveraged leveraged funds continued to decline in the downturn of the stock index, as of last Friday, the two financial balance has dropped to 1 trillion and 360 billion, which is one trillion less than the peak.

The decline of high risk preference funds shows that investors are less sensitive to the market outlook. In the end, the two cities can drop significantly in the near future, and every time a rebound occurs, they are pushed down by funds, indicating that a lot of funds are rebounded, which directly suppresses the rebound of stock index.

Therefore, in the A shares rebound under the three mountains, the rebounding volume, performance is dim, the main force fled, the trend of stocks or stocks should be a high-profile warehouse.

Into the August, how will A share be deductive? For this, Guoxin Securities strategist Zhu Junchun team pointed out that

The two variable is crucial. First, it is the attitude of the government, and the second is the market price.

If the government's attitude is to provide a steady flow of liquidity at the bottom of the early stage, which will be at the bottom of the level, the latter trend will be based on the convergence of policy bottom.

It believes that

The adjustment is not benign or even intense; the second stage of the rebound may not have been seen.

But in the long run, on the one hand, we need to see the extent of self adjustment of the market. On the other hand, many of the "big stones" hung in the minds of investors remain on the same day. It is very difficult for the market to regain the upward trend.

These "big stones" include the announcement of the withdrawal mechanism of government bailout funds, IPO restart, registration system landing and so on.

The chief strategist of Guotai Junan, Qiao Yongyuan, believes that the current A - share reconstruction will still take time, and A shares will continue to be rebuilt between 3400 and 4300.

It is reported that, in July 8th, the company announced that 200 billion yuan of funds had been applied to the 5 fund companies, and the funds for the active management of partial funds have all been credited.

In this regard, Li Shaojun, chief strategist of Minsheng securities, said that the current market sentiment is more fragile under frequent shocks. It is prone to overreact to all kinds of information, especially negative information. The "escort" measures continue, and investor sentiment is expected to be repaired slowly in the context of intensified market regulation.

Whether August is an opportunity or a challenge? Li Shaojun pointed out that the investment targets with good performance support in the financial and consumer fields can focus on the banking sector which is strengthened by the Internet financial regulation, and has the outstanding performance and strong defensive food and tourism, food and beverage, agriculture, forestry, animal husbandry and fishery, and home appliance plate investment targets. In addition, the investment opportunities of hot events and policies may be explored, focusing on the real estate and sports fields induced by the Winter Olympic Games, and the construction of urban underground integrated pipe corridors under the steady growth and overweight, and investment opportunities in the field of national defense industry, which are catalyzed by the war parade and the reform of state-owned enterprises.

Qiao Yongyuan pointed out three major investment directions, one is the good trend of the industry, the high degree of sub industry boom, the media and aquaculture with clear performance, and the second is the high cost performance, the great anticipation of the overlay reform, and the low matching of obvious electricity (state-owned enterprise reform and power reform).

In terms of the theme, it recommended the direction of SOE reform, 13th Five-Year plan, Shanghai Disney and PPP.