Today's A-share market is still showing a downward trend so far. The three major indexes all closed down, and the trading volume of the two cities was only 480 billion, compared with the previous trading day, although there were nearly 30 billion incremental funds, but the significance of this incremental funds was not great, after all, the trading volume of the two cities has been maintained at about 600 billion recently. In this general decline environment, we see a very strong rally in the banking sector today.
After the market value of ICBC surpassed Moutai, it rose again today to hit a new high in the year, and Bank of Nanjing and Bank of Communications also hit a new high in the year.
So what is the reason for such a large concentration of the financial sector today, is it really a disk protection?
To a certain extent, the rise of the banking sector is indeed to protect the disk and prevent the A-share market from falling more sharply in the short term. At present, the weight of the A-share market is larger, in addition to consumer stocks, that is, financial stocks, and the chips of the banking sector in financial stocks are relatively concentrated, which is also relatively easy to pull up, which can pull the weight of the Shanghai Composite Index to a certain extent to prevent a relatively large decline in the current situation of shrinking trading volume in the two markets.
Financials are inherently stronger than consumer stocks at the moment. From the current A-share market consumer stocks and financial stocks in the two directions, the current adjustment cycle of financial stocks has ended, showing an upward trend, and consumer stocks are still in a state of adjustment in the middle cycle, and today's financial stocks are understandable to a certain extent.
The RMB exchange rate hit a record low, and the market is looking forward to a stronger monetary policy. Another additional reason for today's rally in the banking sector is that the offshore renminbi exchange rate has recently broken through 7.3 and set a record. The recent new low is just one step away from the previous low above. At present, the market is expecting a stronger monetary policy to stimulate the current economy, so the banking sector is expected to be positive.
Against the backdrop of a strong US dollar interest rate hike, will the banking sector continue to rise?
Under the expectations of the market, I personally feel that banks and current financial stocks themselves have a tendency to strengthen, and they have to shoulder the responsibility of maintaining the broad market index, from this point of view, the financial sector may have a sustained upward trend in the short term.
The banking sector is higher across the board, what should we do?
Focusing on the current dividend direction, the banking sector also belongs to high-dividend dividends. The recent dividend direction is to be held by the capital, to a certain extent, in fact, it is also to avoid the risk of the market, the collection of dividends is basically high-dividend stocks and some central bank financial stocks, including a part of the bank stocks, which is worthy of our attention.