March 16, mid-day, the State Council Financial Stability Development Commission (hereinafter referred to as "Financial Committee") released positive signals, the A-share drought for days to meet the rains, ushering in a long-awaited surge. The funders who have turned off their lights and eaten noodles for a while have finally dared to open their funds to take a look at the earnings.
After the Financial Committee issued a "pill", a line of two meetings, the Foreign Exchange Bureau and other ministries followed the intensive statement, will work together to maintain the smooth operation of the capital market.
In early trading on March 17, A-shares were in full mood, with both the Shanghai and Shenzhen markets opening higher. As of the lunch break, the Genesis index rose over 4%, with real estate, construction materials and pharmaceutical and biological sectors leading the way. Fund weighted stocks Guizhou Maotai closed at 3.77% and Ningde Times closed at 5.74%. As market sentiment turned warm, northbound funds also took a turn, with net buying of 3.181 billion yuan.
Many ministries and commissions take a stand on real estate, the policy bottom has emerged
The special meeting held by the Finance Committee on March 16 was chaired by Liu He, member of the Political Bureau of the CPC Central Committee, Vice Premier of the State Council and Director of the Finance Committee.
Against the backdrop of a volatile overseas situation, a bloody international capital market and a tumbling A-share market, this conference provided a clear and informative response to the capital market's concerns about economic policy, real estate, Chinese stocks and the platform economy.
Zhao Wei, chief economist at IFC, believes that the meeting highlights the importance that policy makers attach to the healthy and stable development of the capital market, which plays an important role in stabilizing market expectations and boosting market confidence.
For the policy signal, A shares also made a full response - Shanghai index rose more than 3%, led by the rise of the GEM index rose more than 5%. Hong Kong stocks also rebounded, with the Hang Seng Index regaining 20,000 points intraday and the Hang Seng Technology Index rising more than 20%.
It is worth noting that, regarding real estate issues, the Finance Committee proposed to study and propose strong and effective programs to prevent and resolve risks in a timely manner. Since then, the Central Bank, State Administration of Foreign Exchange, China Securities Regulatory Commission, China Banking Regulatory Commission and Ministry of Finance have taken a stand, saying that they will cooperate with relevant departments to effectively resolve the risks of real estate enterprises and promote the virtuous cycle and healthy development of the real estate industry.
Since this year, real estate related policies have been released nearly 80 times around the world, of which the supportive policies to stabilize the property market have been released nearly 40 times. And this intensive voice of many ministries and commissions, or means the emergence of a real estate policy bottom.
Ping An Securities said the regulatory statement, firm confidence in the timely and effective resolution of industry risks, is expected to be followed by more stable real estate policies.
Yan Yuejin, research director of the Think Tank Center of the E-House Research Institute, said such statements indicate that the financial and fiscal sectors are concerned about the financial aspects of the real estate market. It has a positive guiding effect on the subsequent development of the real estate work of the financial and fiscal departments of the provinces and cities, and will be actively implemented in one city and one policy around the world.
Buoyed by multiple statements, March 17 morning trading, the real estate sector rose again, as of midday, closing up 5.2%. Many stocks such as Tefa Services, Sunshine City and Shilianxing rose, while construction materials in the real estate industry chain were also up over 5%. Hong Kong stocks of domestic housing stocks are also higher across the board, as of press time, Sunac China rose more than 45%, Cinnamon Park, Cinnamon Park Services are up more than 20%.
It is worth noting that the Financial Committee meeting also stressed the transformation of real estate companies to a new development model. early March 17, the flush concept of rent-to-own, property management rose more than 5%.
CITIC Securities pointed out that while resolving short-term risks may rely on mergers and acquisitions and loan placement, companies still need to adapt to a whole new era to solve the industry's long-term problems. The future of real estate enterprises mainly lies in the holding, operation and service of real estate space, including meeting the demand of new citizens for housing, meeting the demand for leasing, meeting the demand for renewal and renovation of old neighborhoods, and urban space service business opportunities.
Star funds rally violently to start the road back to positive returns?
Since this year, especially after the outbreak of the Russia-Ukraine war at the end of February, global markets have been shaken violently, and A shares have not escaped. At the same time, the Fed's interest rate hike expectations are also stirring the mood of emerging market funds from all directions. For the past eight trading days, the northbound funds have continuously net sold and slammed the track stocks, which is one of the important reasons for the recent continuous plunge of A-shares.
On March 16, local time, the Federal Reserve announced an increase in the target range of the federal funds rate by 25 basis points to between 0.25% and 0.5%. With the Fed's boots on the ground and the timely release of stabilization signals from the FSC, short-term risk aversion eased and net outflows of northbound funds decreased significantly compared to the previous trading day, with A-shares and Hong Kong stocks seeing a rebound.
On March 16, the net value of a number of funds pulled up violently. Flush data show that day a total of 14 heavy Hong Kong stocks fund net value rose more than 20%. 23 funds net value of a single day rose more than 10%.
2021 for betting on the track heavy position in liquor "100 billion top flow" Zhang Kun's E-Fonda quality selection mix on the one hand, stepped in the very rapid force of Hong Kong stocks technology stocks, on the one hand, long positions in stocks containing market sentiment boosted by the track stocks, such as the second largest long positions in Guizhou Maotai, Wuliangye were up more than 4% yesterday, Luzhou Laojiao also had more than 3% increase.
Last year's scenery of the double champion fund manager Cui Chen Long suffered a "black" market, he managed the Qianhai open source public utilities stocks fell more than 20% year-to-date, and Wang Xia co-managed the Qianhai open source Shanghai, Hong Kong and Shenzhen non-cyclical stocks C fell more than 30%. With A shares, Hong Kong stocks rebounded across the board, the new energy sector strengthened, the two funds a snow, respectively, up more than 8%, 10%. The emotions of the fund holders have also been greatly soothed.
Famous Qiu Dongrong's Zhong Geng Value Pilot Mix has demonstrated better risk aversion during the market crash, and as of March 16, the fund has not fallen more than 3% since the beginning of the year. Not only that, the fund's sprinting ability is not weak, in the A-share Hong Kong stocks rebounded across the board, but also made a gain of more than 9%, "others down when down less, others up when not lagging behind", giving investors a good experience of holding the fund.
Looking ahead to the future market, CITIC Investment Chen Guo team issued an article, said the market confidence boost catalyzed the A-share market rally across the board, a quarterly report performance is the core of concern. According to its statistics, from the meso data, new energy vehicle sales data in February this year, photovoltaic demand in the first quarter of this year is better than expected, semiconductor, military industry is still in the high boom range, coupled with the decline since December last year and the current relatively reasonable valuation points, bullish on its subsequent relative return performance.
(The text of this article is copyrighted by China Merchants Bank. All rights reserved. In no event does the information in this material or the opinions expressed constitute an advertisement, an offer, an invitation to make an offer, or investment advice to anyone, and is for communication purposes only.)