On November 5, the Shanghai and Shenzhen stock markets continues trend of forced air.
“Surprise, surprise. “A lot of fund managers described the forced air at this two-day a-share market.
On November 5, one day before the Shanghai and Shenzhen stock markets take up market, performing forced air movement. On the side, brokers financial unit to rise up again to serve as “lead to big brother.”
End of the year, familiar scene makes a lot of investors recalled the beginning of the bull market-in November 2014, the wave of market, at that time, in brokerage, banking stocks pull off the index siege pulling Zhai, breath rushed from 2,400 to 3,000-point mark. Since then, the surging bull market was opened up to half a year, until June 12, climbed 5178.19 peak.
This time, the market and how it will play?
“The geographical and human”
HSBC technology pioneer Fund Manager Chen believes that rebound has come late.
Chen believes that present short-term rebound more than expected, from “sharing among people,” three major factors. Li Ka shing a three page official response to
Timing – index shrank down in nearly a week, trading volume is close to continue shrinking space is very small, on the technical side is preparing to break the down channel. But recently rebounded to the need of a technical rebound.
Location – after a central bank rate cut in a row, the risk-free interest rates have fallen to half of last year, and the risk-free interest rate of decline also contributed to the promotion of risk appetite in the market, which become the most core markets continue rebound since mid-September.
And–the news messages provide hotspot support for market higher. First is 6.5% rate goal proposed by Mr XI, politically for China’s future economic growth to provide a “strong” guarantee. Secondly, the “Thirteen-Five plan” announced that provide the market with a lot of hype for hotspots and directions available for investment. Third, Shenzhen Tong rumors also were filled with anticipation by investors for new funds.
Southern Fund Chief Strategy analyst Yang DeLong from view, short people have short positions or close short positions, they are not short, but potential bulls, once the market improves, this forced air market, many investors are passive or active opening, “for many people, being vacant even worse than tied up. ”
Turn left, turn right
Leader in brokerage shares surge in the past two days without a doubt, this is the beginning of another round of market, is the end of this round of stock market? In this regard, the Fund has divided opinion.
A Fund Manager, told reporters in Shanghai, brokerage shares is actually fill up logic, from plate rotation angle, emerging stocks rose, then the brokerage unit.
“Brokers this rise may signal market draws to a close. “The Fund managers think, from fundamentals, cyclical industry fundamentals are very poor, brokers bottom in September, so as a transaction, which is currently on the market sector rotation, and a possible trade.
According to a-share listed company earnings data in 2015, overall net earnings a share in the third quarter (over the same period) compared to the growth rate fell sharply in the first half, profit growth slipped to 2.15% from 9.12% in first half of 2015. After eliminating the financial sector earnings growth fell from-1.03% to-10.79%. Industry, highest profit growth of five industries, namely: non-banking financial services, electrical equipment, media, leisure and medical biology. Associated with the macro-economic boom of large iron and steel, mining, construction and non-ferrous metals industry profit growth the lowest.
“Other cyclical industry fundamentals are so poor, not much chance. “The Fund said, brokerages rose up, having surged reasons, probably in a volatile range.
Another fund industry that, despite large gains in the recent blue-chip stocks such as brokerage, but over a period of time and price elasticity is still weaker than gem.
Bosera funds macro Strategy Department also believes that after a short period after the surge, changes in investor confidence or sentiment is reflected, a share is not the short term with continuous sharp rise in conditions, rates probably will maintain a slight concussion in the future.
But some fund managers believe that brokerage shares agitation means the start of a new round of prices.
Yang DeLong from said, brokers are the most plates to drive market sentiment, the market is expected to come out of a breakthrough, a second wave of rebound is imminent.