Market Overview
On July 18, 2024, the three major indexes rose collectively, with the Shanghai Composite Index rising 0.48% to close at 2,977.13 points, the Shenzhen Component Index rising 0.50% to close at 8,879.33 points, and the ChiNext Index rising 1.25% to close at 1,717.71 points. Today's turnover of the two markets was 672.3 billion, a decrease of 15.7 billion from the previous trading day.
Disc observation
In terms of the index, the market opened low and rebounded, and the ChiNext index rose by more than 1%. Most of the core broad-based indices rose, with the ChiNext 50, the 50 Science and Technology Innovation and Entrepreneurship 50, and the Value Creation; The BSE 50 fell more than 4%. The SSE 50 and the CSI 300 both recorded 8 consecutive gains.
In terms of plates, lithography machines, rail transit equipment, industrial machine tools, online car-hailing and other sectors were among the top gainers, while consumer electronics, copper high-speed connections, PCB, Sora concepts and other sectors were among the top decliners. More than 2,900 stocks fell in the whole market.
From the perspective of the industry, the national defense industry, power equipment, public utilities and other sectors rose, while the media, computer, electronics and other sectors fell.
In terms of conceptual themes, photoresist, germanium gallium, industrial machine tools and other sectors rose, while the smallest market capitalization, Baidu platform, Apple and other sectors fell.
Hot industry - national defense and military industry
Today, the defense industry rose 2.0%. Guosen Securities: Due to the impact of factors such as plan adjustment and military price adjustment, the pace of demand release has fluctuated in the past year, and the income of military enterprises has slowed down or even declined after experiencing rapid growth in the early stage. Although the short-term performance of the industry is under pressure, with the marginal improvement of the demand side, as well as the end of the "14th Five-Year Plan" and the imminent goal of building a centennial army in 2027, the long-term upward momentum and certainty of the industry are still very strong, and the industry is expected to achieve performance recovery in the second half of 2024 and re-enter the upward channel. In the next 20 years, the global aviation market will continue to grow, of which China's aviation market will be the fastest growing market in the world in the future, and will surpass Europe and North America to become the world's largest aviation service market in the next 20 years. As one of the duopoly of the global civil aviation market, Boeing has been troubled by frequent accidents in recent years, and has significantly lagged behind Airbus in terms of reserve orders and aircraft deliveries, but at present, Airbus is limited by a tight supply chain and has insufficient production capacity. The C919 large passenger aircraft is oriented to the single-aisle passenger aircraft market, benchmarking the Boeing 737 MAX and Airbus A320Neo models, and is expected to replace the Boeing 737 series as a major player in the future. C919 is currently going all out to ramp up production capacity, C919 will become a "new engine" to drive the development of the continental aviation industry and high-end manufacturing industry, and the localization rate will continue to increase in the future.
(The above does not constitute a recommendation of individual stocks)
Market interpretation
On the one hand, the index has recently improved slightly under the drag of incremental funds, on the other hand, the market itself is in the repair stage since last Tuesday, and the active funds are expected to be relatively good, from the strength of the rebound and repair, the current rebound is slightly weaker than the previous decline, and the short-term or still in the shock pattern, with the end of the policy game node, the risk of re-exploration under the influence of emotions is not ruled out, but we are not pessimistic.
Since late May, the overall adjustment has been fully deduced, and for the medium-term market trend, we maintain the previous view: the short-term market downward trend is gradually curbed, or ushered in a wave of rebound opportunities, maintain an optimistic view, we may be standing in another round of pendulum more extreme position, followed by apparent earnings improvement, policy-driven is expected to appear in this year another stage low.
(The above does not constitute a recommendation of individual stocks)
Hot information
◆ [Communiqué of the Third Plenary Session of the 20th Central Committee of the Communist Party of China: Making Systematic Arrangements for Further Comprehensively Deepening Reform] The Third Plenary Session of the 20th Central Committee of the Communist Party of China was held in Beijing from July 15 to 18, 2024. The plenum made systematic arrangements for further deepening reform in an all-round way, emphasizing the construction of a high-level socialist market economy system, improving the institutional mechanism for promoting high-quality economic development, building an institutional mechanism to support comprehensive innovation, improving the macroeconomic governance system, improving the institutional mechanism for urban-rural integrated development, improving the institutional mechanism for high-level opening-up, improving the whole-process people's democratic institutional system, improving the socialist rule of law system with Chinese characteristics, deepening the reform of the cultural institutional mechanism, and improving the institutional system for safeguarding and improving people's livelihood. We will deepen the reform of the ecological civilization system, promote the modernization of the national security system and capabilities, continue to deepen the reform of national defense and the armed forces, and improve the party's leadership level for further deepening reform in an all-round way and advancing Chinese-style modernization. (CCTV News)
◆ [Communiqué of the Third Plenary Session of the 20th Central Committee of the Communist Party of China: The General Goal of Further Comprehensively Deepening Reform] Communiqué of the Third Plenary Session of the 20th Central Committee of the Communist Party of China: The Plenary Session pointed out that the overall goal of further comprehensively deepening reform is to continue to improve and develop the socialist system with Chinese characteristics and promote the modernization of the national governance system and governance capacity. By 2035, we will build a high-level socialist market economy in an all-round way, further improve the socialist system with Chinese characteristics, basically modernize the national governance system and governance capacity, and basically realize socialist modernization, so as to lay a solid foundation for building China into a great modern socialist country in all respects by the middle of this century. It is necessary to focus on building a high-level socialist market economic system, focusing on the development of whole-process people's democracy, focusing on building a socialist cultural power, focusing on improving the quality of people's lives, focusing on building a beautiful China, focusing on building a higher level of peace in China, focusing on improving the party's leadership level and long-term governing ability, and continue to push forward reform. By the 80th anniversary of the founding of the People's Republic of China in 2029, the reform tasks set forth in this decision will be completed. (CCTV News)
◆ [Communiqué of the Third Plenary Session of the 20th Central Committee of the Communist Party of China: Earnestly do a good job in the preliminary planning work of the 15th Five-Year Plan] Communiqué of the Third Plenary Session of the 20th Central Committee of the Communist Party of China: The plenary session analyzed the current situation and tasks, and emphasized the unswerving realization of the annual economic and social development goals. In accordance with the decisions and arrangements of the CPC Central Committee on economic work, we should implement macro policies, actively expand domestic demand, develop new productive forces in accordance with local conditions, accelerate the cultivation of new momentum for foreign trade, solidly promote green and low-carbon development, effectively protect and improve people's livelihood, and consolidate and expand the achievements of poverty alleviation. It is necessary to summarize and evaluate the implementation of the "14th Five-Year Plan" and do a good job in the preliminary planning of the "15th Five-Year Plan". (CCTV News)
◆ [Communiqué of the Third Plenary Session of the 20th Central Committee of the Communist Party of China: Optimizing the Supply Mechanism of Cultural Services and Cultural Products and Building a More Effective International Communication System] The Third Plenary Session of the 20th Central Committee of the Communist Party of China was held in Beijing from July 15 to 18, 2024. The plenum pointed out that Chinese-style modernization is a modernization in which material civilization and spiritual civilization are coordinated. It is necessary to enhance cultural self-confidence, develop advanced socialist culture, carry forward revolutionary culture, inherit the excellent traditional Chinese culture, speed up the adaptation to the new situation of rapid development of information technology, cultivate and form a large-scale contingent of outstanding cultural talents, and stimulate the vitality of cultural innovation and creativity of the whole nation. It is necessary to improve the responsibility system for ideological work, optimize the supply mechanism of cultural services and cultural products, improve the comprehensive network governance system, and build a more effective international communication system. (Finance Associated Press)
◆ [Communiqué of the Third Plenary Session of the 20th Central Committee of the Communist Party of China: Adhere to the basic national policy of opening up to the outside world and promote reform through opening-up] The Third Plenary Session of the 20th Central Committee of the Communist Party of China was held in Beijing from July 15 to 18, 2024. The plenum pointed out that openness is a clear sign of Chinese modernization. We must adhere to the basic national policy of opening up to the outside world, persist in promoting reform through opening-up, rely on the advantages of the mainland's super-large-scale market, enhance the ability of opening up in the process of expanding international cooperation, and build a new system of a higher-level open economy. It is necessary to steadily expand institutional opening-up, deepen the reform of the foreign trade system, deepen the reform of the foreign investment and foreign investment management system, optimize the layout of regional opening-up, and improve the mechanism for promoting high-quality Belt and Road cooperation. (Finance Associated Press)
◆ [Communiqué of the Third Plenary Session of the 20th Central Committee of the Communist Party of China: It is necessary to improve the system and mechanism for developing new quality productive forces according to local conditions and improve the system for promoting the deep integration of the real economy and the digital economy] Finance Associated Press, July 18, 2024, the third plenary session of the 20th Central Committee of the Communist Party of China was held in Beijing from July 15 to 18, 2024. The plenary session pointed out that high-quality development is the primary task of building a modern socialist country in an all-round way. We must lead the reform with the new development concept, base ourselves on the new stage of development, deepen the supply-side structural reform, improve the incentive and restraint mechanism for promoting high-quality development, and shape new momentum and new advantages for development. It is necessary to improve the system and mechanism for the development of new quality productivity in accordance with local conditions, improve the system for promoting the deep integration of the real economy and the digital economy, improve the system and mechanism for the development of the service industry, improve the system and mechanism for modern infrastructure construction, and improve the system for improving the resilience and safety level of the industrial chain and supply chain. (Finance Associated Press)
◆ [Communiqué of the Third Plenary Session of the 20th Central Committee of the Communist Party of China: We must unswervingly consolidate and develop the public economy and unswervingly encourage, support and guide the development of the non-public economy] The Third Plenary Session of the 20th Central Committee of the Communist Party of China was held in Beijing from July 15 to 18, 2024. The plenum pointed out that a high-level socialist market economic system is an important guarantee for Chinese-style modernization. We must give better play to the role of the market mechanism, create a fairer and more dynamic market environment, optimize the efficiency of resource allocation and maximize the benefits, "let it live" and "manage", better maintain market order, make up for market failures, smooth the national economic cycle, and stimulate the endogenous power and innovation vitality of the whole society. It is necessary to unswervingly consolidate and develop the public sector of the economy, unswervingly encourage, support, and guide the development of the non-public sector of the economy, ensure that the economy of all forms of ownership uses the factors of production on an equal footing according to law, fairly participates in market competition, and enjoys equal legal protection, so as to promote the complementary advantages and common development of the economies of all forms of ownership. It is necessary to build a unified national market and improve the basic system of the market economy. (Finance Associated Press)
◆ [Communiqué of the Third Plenary Session of the 20th Central Committee of the Communist Party of China: It is necessary to improve the macroeconomic regulation and control system, coordinate and promote the reform of key areas such as finance, taxation and finance, and enhance the consistency of macroeconomic policy orientation] Cai Lian Press, July 18 -- The third plenary session of the 20th Central Committee of the Communist Party of China was held in Beijing from July 15 to 18, 2024. The plenum pointed out that scientific macroeconomic regulation and control and effective government management are the inherent requirements for bringing into play the advantages of the socialist market economic system. It is necessary to improve the macroeconomic regulation and control system, promote the reform of key areas such as finance and taxation and finance as a whole, and enhance the consistency of macroeconomic policy orientation. It is necessary to improve the national strategic planning system and the overall policy coordination mechanism, deepen the reform of the fiscal and taxation system, deepen the reform of the financial system, and improve the implementation of the regional coordinated development strategy mechanism. (Finance Associated Press)
◆ [Fudan Department of Physics team discovers new high-temperature superconductor] Finance Associated Press, July 18, the research results of Professor Zhao Jun's team from the Department of Physics of Fudan University were published in the latest issue of Nature on the evening of July 17, Beijing time, with the title of "Superconductivity in pressurized trilayer La4Ni3O10-δ single crystals". Prof. Jun Zhao's team successfully grew a high-quality single crystal sample of three-layer nickel oxide La4Ni3O10 using high-pressure optical floating-zone technology, which confirmed the pressure-induced bulk superconductivity in nickel oxide, and its superconducting volume fraction reached 86%, which means that another new type of high-temperature superconductor has been discovered. The study also found that these materials exhibit exotic metals and unique interlayer coupling behaviors, which provides a new perspective and platform for understanding the mechanism of high-temperature superconductivity. (Finance Associated Press)
◆ [The National Medical Security Standardization Working Group was established, which will accelerate the construction of medical security standardization] Today (18th), the National Medical Security Standardization Working Group was established in Beijing. The mainland will accelerate the standardization of medical security, formulate various medical security standards as a whole, and promote the implementation of various standards, so as to provide strong support for the high-quality development of medical insurance. Huang Huabo, deputy director of the National Medical Security Administration, introduced that the next step is to adhere to the basic principles of scientific authority and people-oriented, take standardized management and improvement of services as the starting point, refer to the existing standards of the country, international countries and industries, scientifically formulate standards, and build a new system of medical security standardization. (CCTV News)
◆ [Wahaha General Manager Zong Fuli resigns? In response to the online rumor that Zong Fuli, vice chairman and general manager of Hangzhou Wahaha Group Co., Ltd., proposed to resign, a person close to Wahaha Group said that the situation was true, but the incident happened suddenly, and the company's executives did not know about it before, and the company's shareholders and management are currently negotiating to deal with it. (The Paper)
◆ [OPEC+ representative said August meeting will not change oil production increase plan] Finance Associated Press, July 18 -- OPEC+ representatives do not believe that the August meeting will change the production increase plan, and the organization has agreed to increase production from October. Delegates said next month's ministerial panel meeting will be routine and will not change plans to increase production from the fourth quarter. The group, led by Saudi Arabia and Russia, agreed last month to gradually resume crude oil production, which had been suspended at about 2.2 million barrels per day, starting in October. (Finance Associated Press)
◆ [Media: US heavyweight business executives will visit China next week] Cailian, July 18, according to a report on the website of Hong Kong's "South China Morning Post" quoted by the reference news network on July 18, according to people familiar with the matter, a group of heavyweight United States business executives will go to Beijing next week, and they hope to meet with Chinese officials in order to personally understand the situation. According to the report, the visit will be coordinated by the Washington-based U.S.-China Business Council. The executives will be led by Craig ·Allen, president of the U.S.-China Business Council, and Raj Subramaniam, CEO of FedEx ·. According to reports, the executives of the visiting companies come from Goldman Sachs, Starbucks, Honeywell, UnitedHealth, Nike and Qualcomm, all of which have a large presence in China. "The delegation hopes to meet with senior Chinese officials," a source said. (Finance Associated Press)
◆ [TSMC raised this year's revenue growth guidance to 24%~26%] Finance Associated Press on July 18, TSMC held the second quarter legal conference on July 18, Chairman and President Wei Zhejia proposed "wafer foundry 2.0", including packaging, testing, mask production and memory manufacturing related IDM industry, under this definition, the wafer foundry industry is expected to grow by 10% this year. Wei Zhejia pointed out that TSMC's 3nm and 5nm demand is strong, and this year it is because of the large demand for advanced processes for AI and smartphones. He said that TSMC raised its revenue growth guidance for this year to the middle of the 20% range (24%~26%). (Finance Associated Press)
Risk Warning
This material is only service information, not as a recommendation of individual stocks, does not constitute any substantive advice or commitment to investors, nor does it serve as any legal document. Past performance of the market or related products is not indicative of the future. Before investing in a fund, investors should carefully read the fund's "Fund Contract", "Prospectus" and "Product Key Facts Statement" and other fund legal documents, fully understand the risk-return characteristics and product characteristics of the fund, and fully consider their own risk tolerance according to their own investment objectives, investment period, investment experience, asset status and other factors, and make rational judgment and prudent investment decisions on the basis of understanding the product situation and sales suitability opinions, and independently bear the investment risk. The market is risky and investors should be cautious.
Source: wind, iFind, SSE, SZSE, various news outlets, 18 July 2024
Source: Official media/online news