The A Share Market Is Currently In A Serious "Valuation Split" State.

IPO restarted, abolished the pre payment system for new shares subscription, and superimposed the requirement that the online purchase scale should match the market value. Previously, a quiet new fund and insurance funds that might take part in new low risk preferences will enter the compensation stage for high dividend yield blue chips.

The current bank financing rate is not high, and buying a bank share may be more reliable than buying bank financial products.

Most of the funds invested in financial products are fixed income products such as interbank markets and bonds. These products are at low risk and yield is not high.

If you want to get a higher return, you have to rely on the equity market.

Bank stocks are at a very low risk. Banking stocks are the most robust sector of China's stock market this year.

As of November 11th, Shanghai and Shenzhen two cities A share price earnings ratio of 22.50 times, of which Shanghai and Shenzhen 300 index earnings ratio 13.41 times, Shanghai composite index price earnings ratio is 16.29 times, Shanghai Composite Index 50 price earnings ratio 10.39 times.

Compared with the main indexes of the international stock market, the Shanghai Stock Exchange Index 50 is similar to the world's lowest value index of Hang Seng Index and hang seng index. The Shanghai Stock Exchange 50 with big blue chips is at the bottom of the world.

The Shanghai and Shenzhen 300 index is the same as the Dow.

The price earnings ratio is as high as 94.17 times, and the middle and small board refers to 62.44 times the price earnings ratio, which is called the "top of the earth".

In the "valuation division", how can we dig out the real value stocks?

As of November 11th, Shen Yi class banking industry earnings ratio is only 6.13 times, the non banking financial industry earnings ratio is 16.38 times, than bear city after October 2008, the valuation is even lower.

The A share market has formed the two major valuation systems of the main board, the three blue chip stocks index and the small and medium sized index, and the three blue chips index has been integrated with the mature market.

With the restart of IPO, the new rules of market value distribution will also form a positive impact on blue chip stocks, and the promotion of SOE reform will highlight the value of blue chips.

As a long-term investment theme, SOE reform stocks will be strengthened again and again.

along with

Major breakthroughs have been made, such as "one belt and one road", coordinated development of Beijing, Tianjin and Hebei, and the implementation of major economic strategies such as the Yangtze River economic belt.

Securities companies have survived the most difficult period in terms of fundamentals and policies. At present, the valuation of the industry is equivalent to the valuation level at the end of November 2014, and there is still room for big rebound.

The investment themes of the securities industry in the future will be innovative development and international investment banks.

The valuation of gem and small and medium board is back to the top of the earth, but those growth theme stocks that are compatible with the current economic pformation are still deeply loved by the market.

Some analysts believe that the valuation system of growth stocks and blue chips is different, and Microsoft is a typical case.

Microsoft went public in the US Nasdaq market in 1986, but it did not affect Microsoft becoming a blue chip stock.

If so

The standard to measure growth stocks, or to measure blue chips by the standard of growth stocks, there will be bias in the judgement of the market.

The valuation system of growth stocks is rather complicated, but the core is industry and products.

It was a lesson that Enron Corp, which triggered the collapse of the US stock bubble, used to hide its liabilities in the balance sheet to show the steady growth of profits, thereby realizing the hype of share prices.

The most important valuation of growth stocks is "not afraid to buy expensive, but afraid to buy the wrong ones".

On Thursday, the stock index went flat to Kaiping, and the volume of the major plates shrank.

However, the gem and small and medium board stocks, represented by computer software, electronic information, communications, educational media and other industries, are in the lead in rebounding, and have led to a full rebound in the overall market.

In the afternoon, Chuang Xiao board received a total of 43 billion yuan of funds, and electronic information, computers, new energy and materials, lithium batteries, magnetic materials and other growth concept plates ranked the forefront of net capital inflow.