Stock Market Situation: Investing In A Shares Depends On "Three Roads".

An almost certain fact is that the investment concept of A shares is changing imperceptibly.

Whether it is the increase in supply side chips caused by the normalization of IPO, or the "beautiful 50" tug of heating, it has been repeatedly highlighting the fact that structured market will become the main line of A shares, and the situation of dog and dog ascends is gone forever.

Whether it is an institution or a future professional investor, we must comply with this top-down change, choose the best and attack the long term value investment.

From the current situation of A shares, the three major investment lines deserve future attention.

The first big line is large consumption, especially the advantageous enterprises in the field of large consumption segmentation, which will enjoy asset premium.

In this regard, Guizhou Moutai, Midea Group, SAIC and GREE electric appliances have set an example.

The idea of choosing this sector to invest is based on the full dividend sharing of the "unicorn" company established in the fully competitive industry.

That is to say, the fact that the 1 billion 400 million population is actually a demographic dividend still exists, so large consumption has a broad space for growth. For example, if the cymbidium falls down in the air conditioning field, there will still be the rise of GREE beauty. The consumption base will not change the overall pattern of the whole industry.

Similar situations will occur in many fields such as household appliances, catering, digital consumption, real estate, department stores, automobiles, medicine and so on. These are the areas closely related to demographic dividend, that is, areas that must be consumed, and there are areas for upgrading space.

In these big consumption areas, there are actually leading enterprises in the field, such as GREE in the field of home appliances, GREE Wuliangye in restaurants, HUAWEI millet in digital consumption, Vanke poly in real estate, Wangfujing Bailian in department stores, SAIC FAW in cars, Baiyao Zai Zai in medicine and so on.

Selecting the industry leader can fully share the demographic dividend.

Doubling effect, and the Oligarchic Competition in this industry will also intensify. The top three will be eliminated and the top three will be sought after by the market and pursued by capital.

The second main line is big finance, especially those with the lowest value in the world.

Finance is the blood of the economy. The core part of the market economy should be finance. Especially in the second largest economies like China, financial underdevelopment in the world's largest M2 market is unthinkable.

What is interesting is that in a A share market with a long-term lack of value investment concept and a sense of anxiety for the future development of China's economy, bank shares that are supposed to be the aristocratic share price have been suppressed. No matter whether they are huge in circulation chips, huge risks in bad debts, or huge pressure of financial investment, they can find the reason to suppress bank shares anyway.

So the reality we see is that

The state-owned banks and joint-stock banks are at the lowest end of the entire A share, and the average PE (P / E) is no more than 8 times, and the average PB (city net rate) is no more than 0.9 times, which is rare in the world.

The reasons for investing in A shares in big finance, especially banks, are adequate.

The first is that the valuation is low. In the case of ROE (net assets yield) is still above 30%, under the circumstances that there is no risk of operation (the provision of every listed bank is very high), the valuation of A share banks is so low that there is no reason at all.

From the perspective of Davies's double click theory, now buying cheap bank stocks that can maintain a certain growth will fully share the simultaneous rise of net profit and valuation. This is the way to replicate the stock market in 70s of the US stock market, which created "beautiful 50" to create Buffett.

Third, we must pay attention to the large technology sector with Chinese characteristics. This is the direction of future development.

The first two plates are all in the traditional sector, but in this area, we have to talk about the big technology sectors led by Ali, Baidu, Jingdong and Tencent.

What's interesting is that there are no top high-tech companies in China, such as Microsoft and IBM, but there are large technology companies whose market value surpasses them. Thanks to the Internet and China's demographic dividend, these technology companies in China belong to applied science and technology companies more than technology companies, but even so, it can change our lives, and it is also a success to do enough to influence and change to create technology companies.

However, in

It is not easy to find such a large technology company with good quality, because they are almost all listed overseas, and companies like BATJ are not able to meet the listing standard of A shares in the initial stage. They can not reach the standard when they reach maturity, or because the reasons for PE dominance have been listed overseas, or they will still not be listed on A shares because of the ownership structure.

In the A share, we can only choose a tall person in a short person, so it is very difficult to choose and choose. In terms of AI, we may be the only one of the leading companies in the field of artificial intelligence. The industry leader like BATJ is a bit comparable. Maybe there are only a few of them in the field of express delivery, such as the giant in the express field, the giant in the electric field, the mass media and so on. Many of them are overseas privatization, and there is no way out.

Of course, from another perspective, A shares must also tap their leading companies in the field of science and technology. After all, we can not talk about A shares only "cottage". Only technology can change the world. Those brilliant technology companies such as Zhongxing, Internet, Tongfang, purple light and UFIDA hope to make a comeback.

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