Today, the stock of CITIC Securities ranks first on the popular list of stock apps such as Flush and Oriental Wealth. The chart below shows the top 10 hot stocks of today's straight flush:
Why is CITIC Securities suddenly popular? The reason is that this past weekend, Douyin's video of "Shanghai Uncle (Big A loves in late autumn)" sang more CITIC Securities out of the circle. The Shanghai uncle pointed out that CITIC Securities will pull three daily limits from July 22nd to 25th, and the target price will reach 700 yuan per share.
Shanghai Uncle (Big A loves in late autumn) is not an analyst, and he was not a well-known Internet celebrity in the first place, why did he suddenly take CITIC Securities out of the circle by himself?
Judging from the video, there is no fundamental logic in Uncle Shanghai's statement, and he said in the slogan style: "If you want to buy a leading company with real technical content, you will be backed by a central enterprise, and you will never buy a garbage company, and the garbage will be thrown into the trash in the end!" ”。 However, the Internet has a powerful capacity for mobilization. At present, the stock market continues to adjust, and the mood of shareholders is low, and the exaggerated interpretation of the uncle has aroused the emotions of shareholders. Shareholders didn't believe their uncle's opinion, but their uncle's exaggerated interpretation allowed them to find the longing and happiness of the stock market. Of course, the hype behind this is not ruled out.
Netizens joked that Uncle chose to fill the warehouse at the age of filling teeth.
In early trading today, when almost all heavyweight stocks were adjusting, CITIC Securities once rose more than 4%, and its H shares rose by more than 5%. Under the leadership of CITIC Securities, the entire brokerage sector was also once red. However, after midday, as the broader market weakened, the brokerage sector turned green. However, CITIC Securities rose again in late trading, with a final increase of 4.13%.
The central bank cut interest rates in early trading today, with both the one-year and five-year LPR cut by 10 basis points. As an interest-rate-sensitive sector, it is reasonable for brokerage stocks to rise.
However, for brokerage stocks as a whole, there are still variables at the moment. As of July 20, a total of 21 brokerages released the first half of the performance information, on the whole, the decline in performance is the main tone, 6 brokerages to achieve net profit growth, 15 brokerages net profit declined.
The weakness of the investment banking business is the main reason for the decline in the performance of most brokerages. In the first half of the year, the net income of Xiangcai Securities' investment banking business fell by 50% year-on-year, and the net income of investment banking business of SDIC Securities and Guodu Securities fell by 54.42% and 77.52% respectively. This general decline reflects the severe challenges of the current capital market funding environment. In the context of the decline in the scale of equity financing, many brokerages have difficulty maintaining the performance level of previous years. As a traditional advantageous business of brokers, the sharp decline in investment banking income has directly affected the overall profitability of brokerages. In contrast, proprietary business has become a key factor in determining the performance of brokers. Overall, the brokerage industry is facing severe operational challenges in the first half of 2024.
People's minds rose, but today the market has adjusted again. The major A-share indexes diverged, with blue-chip sectors such as liquor, banks, and oil falling. The market as a whole rose more and fell less, with more than 2,900 stocks rising in Shanghai, Shenzhen and Beijing.
Why are high-dividend assets falling? Analysts said that there may be three reasons: First, it has risen a lot, since the beginning of this year, the high-dividend sector has continued to perform against the trend, and individual stocks represented by Agricultural Bank of China and Yangtze River Power have continued to hit record highs. Although individual stocks such as PetroChina and China Shenhua failed to hit a record high due to the high stock prices before, they generally rose by more than 30% during the year. Second, the recent sluggish market turnover is bound to compress the space of the "technology + high dividend" dumbbell strategy, and most of the high-dividend assets are large-capitalization stocks, and the current capital is not enough to support its continued upward movement. The third is to map the trading structure of U.S. stocks, the recent Fed interest rate cut expectations have risen, the "seven sisters" of technology stocks held in the early stage of the market have continued to adjust recently, and the Russell 2000 index, which represents the small and medium-sized cap, once rose sharply.
Author: Xu Jinhua
Editor: Yan Dan
Producer: Wang Junji
This article is the exclusive content of the WeChat public account of "CBN Broadcasting", please contact the background for authorization before reprinting. The individual stocks involved in this article are for reference only, and are not recommended for trading and are not responsible for personal income.