Index shrinkage lower, A-share acceleration in the process of liquidation should "abandon the inferior and select the best"

Public Securities Journal

2024-06-05 22:15Published on the official account of Jiangsu Dazhong Securities News

Image source: Visual China

On Wednesday, A-shares shrank lower, with more than 4,600 stocks in the market falling, with a turnover of less than 700 billion yuan. A few sectors such as lithium batteries, military industry, and semiconductors rose, and themes such as short dramas and virtual power plants pulled back significantly. The three stocks that entered the delisting period fell by more than 80%, and the risk was released at an accelerated pace. Industry insiders believe that under the new rules of strong supervision and delisting, the A-share market is accelerating its liquidation, which is conducive to the survival of the fittest in the market.

The turnover is less than 700 billion yuan

On the 5th, A-share trading was thin, with a turnover of 688.6 billion yuan in Shanghai and Shenzhen, a decrease of 57.1 billion yuan from the previous trading day. At the close, the Shanghai Composite Index fell 0.83% to 3,065.4 points, the Shenzhen Component Index fell 0.8% to 9,393.61 points, the ChiNext Index fell 0.54% to 1,833.55 points, and the STAR 50 Index fell 0.21% to 752.04 points.

In terms of sectors, only a few sectors such as lithium batteries, military industry, and semiconductors rose. In the lithium battery sector, Xinde New Materials rose 10.59%, and Putailai, Zhongke Electric, and Shangtai Technology followed suit. The rise of military informatization concept stocks, aerospace electrical, Zhimingda, Zhongbing Red Arrow, Northern Changlong, Triangle Defense and other stocks rose sharply. The semiconductor industry chain has risen, and Changchuan Technology, Zhongjing Technology, Shanghai Belling, Minxin Co., Ltd., Fuman Micro, Xinyuan Micro, Ziguang Guowei and so on are red.

Short dramas, virtual power plants and other theme stocks have pulled back significantly. Gravity Media fell to the limit, Shanghai Film hit the fall limit, Dragon Media, Huace Film and Television, China Publishing, Southern Media, etc. followed suit. Virtual power plant concept stocks such as Hengshi Technology, Jicheng Electronics, Guoneng Rixin, Ankerui, and Wansheng Intelligence have fallen among the top companies. The concept of cross-border e-commerce fluctuated lower, and cross-border pass, Xinghui shares, Oriental Jiasheng, Henglin shares, etc. fell significantly, inhibiting the market bullish sentiment. Home appliance stocks also continued to decline, Chen Yi Intelligent, TCL Smart Home, Vantage shares, Huarui shares and other relatively sluggish.

The operational risk increases during the clearing process

On the 5th, the three delisted stocks of Delisted Yuancheng, Delisted Carbon Yuan, and Delisted Tongda entered the delisting period, and the stock prices all plummeted. The share price of the delisted Yuancheng plummeted by 98.68% at the highest, from nearly 10 yuan per share to about 0.1 yuan per share. As of the close, the delisted Garden City fell by 96.44%, and the delisted Tongda and delisted Carbon Yuan fell by 80.65% and 83.33% respectively. According to the relevant trading rules, there is no price limit on the first trading day for individual stocks that enter the delisting period, and the daily price limit is 10% thereafter.

"In fact, it's not just the delisting period that individual stocks have fallen rarely. Under the strong supervision and new regulations, market risk warnings and delisting of individual stocks are also unprecedented. Since the beginning of this year, about 100 stocks have been issued delisting warnings, and the number of delisted stocks is gradually increasing. Guo Yiming, director of investment consulting of Jufeng Investment Advisory, believes that "the A-share market is accelerating its clearing. For the market, clearing is a good thing, which is conducive to the survival of the fittest in the market and ushers in high-quality development. However, in the short term, in the process of clearing, investors have increased operational risks, especially when their holdings are often warned by risks or face the risk of delisting. Therefore, for investors, they should change their thinking in time and try to choose reliable listed companies while avoiding problem stocks and delisted stocks. ”

Where there is a big fall, there is a big rise. On the 5th, the new stock Huicheng vacuum closed up 752.95%, with a turnover of more than 1.2 billion yuan, and it was temporarily stopped for the second time in the intraday, becoming the largest increase in the first day of the new stock in the year. The issue price of the stock is 12.2 yuan / share, calculated according to the closing price of 104.06 yuan / share, and the profit of the first sign is 45,900 yuan.

Be patient and wait for the right moment after the trend turn

"Wednesday's trend did not continue Tuesday's strong pattern, but instead fluctuated lower. Heavyweight stocks did not continue to be active, the money-making effect of theme stocks continued to be missing, and the cautious sentiment of funds heated up again. At the indicator level, the main board continued to be under pressure on the 5-day line and then launched a test to the position of the annual line. The daily stop-fall pattern was destroyed again, and the 30-minute line was also approaching the stage low of the previous decline, showing a continuous negative pattern with the center of gravity moving downward. The short-term market is not ideal. The GEM index rose and fell, and then pay attention to the support of the 5-day line. Yuanda investment consultant Wang Yuqian analyzed after hours on the 5th.

In terms of operation strategy, Wang Yuqian believes: "On Wednesday, the market sentiment was sluggish again, individual stocks fell, and the sector also showed a sluggish state of trading. In addition, the time point is close to the Dragon Boat Festival, and the uncertainty in the news also has an impact on the sentiment of capital participation. Therefore, strategically, it is recommended to continue to see more and move less, do a good job in position management, and patiently wait for the right opportunity after the trend turns. ”

CITIC Securities' A-share investment strategy for the second half of 2024 believes that the A-share market will usher in the starting point of the annual rise in the second half of the year, with policy effectiveness and profit quality improvement being the main drivers.

Reporter Chen Hui

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