Capital Escapes, Growth Enterprise Market Slumped 4.66% A Shares Style Switch, Investors Cross The Crossroads

In February 26th, the Shanghai and Shenzhen three major stock indexes all fell, of which the gem refers to a large concussion, which fell to 4.66% on the same day. The intraday drop was over 5%, while photoresist, semiconductor, storage and other technology concept plates fell more than 8%.

"The relationship between A shares and overseas markets is increasing, and it is inevitable that they will be affected. The growth stocks have accumulated good gains in the early stage, and this fall is a normal callback under the influence of the spread of outbreaks, and there is no need to panic too much." Star Stone Investment said.

Before that, technology stocks dominated the growth enterprise market, which has been attacking all the way after the holiday. Statistics show that since February 4th, the gem has risen by 21.44%, and on this day's adjustment, many of the buyers' representatives on behalf of Wu Tong have been "suffering" for many days.

Many market participants speculated that the adjustment of the gem could become the beginning of market style switching, and some agencies said that the performance of A shares is still optimistic in the medium and long term.

Turning point of gem's heat

"We expected that there would be an adjustment last Thursday, when several lines appeared to deviate from the top, but that was a strong return from a strong fund." Wu Tong said, "the big V time sharing trend in February 25th also appeared this situation, the market enthusiasm is very high."

Since February 17th, the single day turnover of GEM has exceeded 200 billion yuan. In February 12th, it broke through 250 billion yuan again, and exceeded 300 billion yuan in February 25th. This also allowed 2020 February to become the largest month in the history of the growth enterprise market.

February 26th seems to be a turning point in the growth of the gem. From the day's turnover, the growth enterprise market began to decline. Wind showed that the turnover of gem was 275 billion 654 million yuan, 13.93% less than that of the previous day.

"As we all know, shrinkage is generally a more dangerous signal, indicating that the potential energy to drive up is weakening." Wu Tong said, "so there is also some panic at the end of the day."

With the adjustment of technology stocks, the cyclical stocks represented by real estate, infrastructure and steel are showing an upward trend. According to the classification of CITIC industries, the index of building, real estate, steel and building materials rose by 4.38%, 2.17%, 1.65% and 1.07% respectively.

Some buyers said that this style switch on the one hand from the market to underestimate the value of the stock allocation, on the other hand also with the public private institutions involved in the regulation of warehousing.

"At present, the valuation of the real estate and infrastructure sector is low, and even a lot of them are broken. In the case of technology stocks driving up A shares, there is room for inflation." An analyst with a listed brokerage in Beijing said.

"Taking into account the impact of the epidemic on the first quarter, there is little possibility that the fundamentals of infrastructure, real estate and other industries will rebound in large areas, mainly because the valuation is too low." A fund manager of a large public offering institution in Southern China said, "another reason is that some public funds have their own positions. At the same time, there are some window guides to restrict the scale of net sales. Fund managers are worried that there will be redemptions, so in order to control net value withdrawal, they have to switch to some targets with lower pre valuation and more defensive effects."

Crossroads of operation

Whether the index adjustment represented by gem is to stick to positions or switch styles, or turn around and leave, investors seem to have come to a crossroads.

Some investors pointed out that for today's stock market with no performance expectations and high dependence on subject matter alone, it can switch to an undervalued consumer share.

"At present, some consumer stocks do not have high technology stocks and may become a better defensive target. Cyclical stocks, though low in valuation, are still constrained by factors such as rising steady growth pressure and poor elasticity." Wu Tong said.

However, some analysts believe that as the market fever still exists, there is still a chance of short-term rebound in technology stocks, and investors can consider gradual retreat in specific operations.

Some data are showing signs of this. For example, in February 26th the Shanghai and Shenzhen two cities fell more than 9% of the stock, although up to 170, but up to 73 stocks have not yet been down, accounting for 42.97%.

"If the downward trend is very strong, most of them will be on the limit, but close to the limit line, it shows that some stocks are still fierce, and there is hope that the price will come again after the price adjustment." The strategic analysts pointed out that "and the Shenzhen stock market has been very strong. At present, the gem has stepped onto the 10 day line, and there may also be a short-term rebound. However, such a rebound is not recommended to catch up, but may become an opportunity to change positions or adjust positions."

Some private agencies also believe that the adjustment does not mean that style will switch to cyclical stocks, for example, star stone investment believes that growth stocks are still the main investment mainline.

"The short-term rebound of cyclical stocks is more of a response to the expected increase in the expected temperature of the resumption of work and the stable growth of the infrastructure in the period of reverse cyclical adjustment. We think that for the investment of cyclical stocks, the traditional infrastructure is more than the bottom line, and its space is limited. In the long run, the new infrastructure is the important direction. In the past several important meetings mentioned the new infrastructure, the new infrastructure overweight will bring more performance support to 5G, cloud computing, industrial Internet and other industrial chains. Star Stone Investment said.

For the future trend of A shares, many industry organizations still expressed optimism for the medium and long term.

"A shares are still in the middle of the" well-off cattle "channel, it is estimated that the second round of industrial capital admission and basic recharge drive will rise in the two quarter. Qin Peijing, chief strategist of CITIC Securities, said: "there is still inertia and inflow of funds in the short term. However, due to the current policy focus on orderly return to work, the monetary policy objective is more focused on steady growth, and the easing of macro mobility is hard to predict. The current round of market capital is also coming to an end. The admission of individual investors is still the main driver in the near future.

"At present, the funds to avoid withdrawal and adjustment are mainly for high-yield, but if the timing ability is not strong, they can also adopt the holding strategy. In addition to some highly valued technology stocks, the valuation of many stocks is still at a low level, and the short-term adjustment is not terrible. In the medium to long term, the A share market will still maintain a certain growth force." Wu Tong said, "some investors who did not enter the market earlier could find opportunities to get on the train in the process of some good companies' valuation decline."

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