A-Share Rebound: 7.7 Billion Capital Flows Back To The North, And Some Institutions Start To Increase Positions

On July 29, a shares rebounded in a large scale, opening the collective rising mode. Shenwanwan 28 industry sectors rose, and the overall market value of a shares rose by more than 1.8 trillion a day.

By the end of the day, the Shanghai composite index was up 2.04% to 3294.55; the Shenzhen composite index was up 3.12%; the index was up 3.78%.

Foreign capital and main funds have changed from net outflow in the previous few trading days to increasing positions. Many institutions interviewed by 21st century economic report also said that they had turned from "wait-and-see" to "slow increase" mode, but they were still observing the sustainability of market capital purchase.

On July 29, a shares rebounded in a large scale, opening the collective rising mode. Photo by Xu Hui

Start bounce mode

Since July, the A-share market has been quite volatile.

First, it experienced a round of unilateral rise, with cyclical stocks, big finance and other undervalued concepts as the main force of the rise. However, since the middle of July, a shares have fallen sharply twice, with the Shanghai index falling 4.50% on July 16 and 3.86% on July 24 (last Friday).

As of last Friday, six of the 30 CITIC's primary industry indexes have fallen by more than 10% in the past two weeks, including electronics, computers and retail trade, which have performed better this year.

After a substantial adjustment, this week, a shares started a rebound mode, the market rose for three consecutive days.

On Monday (July 27), a shares fluctuated, with gold stocks leading the gains. The Shanghai stock index closed up 0.26% around 3200 points;

On Tuesday (July 28), gold opened high and went low, and the Shanghai index closed up 0.71%. Military stocks rebounded on the same day, while cyclical stocks such as nonferrous metals, coal and steel strengthened.

On Wednesday (July 29), biomedicine, home appliances, semiconductor, securities companies and other sectors showed strong performance, and the Kechuang 50 index also rose 5.45%. The leading plate of the day was dominated by technology and consumption, which was the rebound after the super drop in the previous two falls.

Overall, the money making effect of July 29 was quite good. A shares of 3563 stocks rose, only 244 fell.

In this regard, Morgan Stanley Huaxin Fund believes that the recent adjustment is mainly dominated by market risk aversion sentiment and trading capital profit taking.

"With the recovery of the economy and the trend of capital allocation to the equity market, the center of A-share will gradually rise, and the A-share market will further attract investors' attention." Morgan Stanley Huaxin Fund that.

People in the industry believe that the vaccine industry may lead the rise in the news on July 29. In addition, the Politburo meeting will be held this week, and the market is expected to have structural transformation and no tightening of monetary policy.

Foreign investment and main position increase

An important indicator is that on July 29, the turnover of the Shanghai and Shenzhen stock exchanges returned to trillion yuan two trading days later, which is considered to be still popular in the market.

In addition, the net outflow of funds to the North reached 547.7 billion yuan in two consecutive days before the end of the trading day.

In terms of the overall net inflow and outflow of Shanghai and Shenzhen stock market on the previous day, the net inflow and outflow of funds were RMB 14.5 billion for two consecutive days.

However, there are obvious fund differentiation in the market. Large and super large orders, which constitute the main funds, have larger net inflow, while medium and small orders have net outflow, which indicates that retail investors are not optimistic about the market and some investors are still willing to sell high.

"Two large-scale rise, once again confirm the bull market." In the early stage, Yang Dehai, the chief economist of the open source market, believes that the long-term pattern of the bull market has not changed significantly. Now the market has ended the unilateral rise before the market, into the shock rebound trend, the market volatility began to increase

After a period of adjustment of the market sentiment, Yang Delong, as a strong indicator of the stock market, rose in July. It believes that only by adhering to value investment can we seize investment opportunities.

The 21st century economic reporter learned that many organizations hold a cautious and optimistic attitude towards the future market.

"In addition to foreign investors, domestic investors also had a large increase in positions on July 29, but it is suggested that attention should be paid to the persistence of buying." One person said.

"Today is from the low start, a big positive line to start the rebound market, this can be regarded as a sign of low stabilization. But whether the follow-up is continuous or not depends on the gathering of market sentiment, and the trading volume is not very able to explain the problem. " On July 29, a private equity source said.

The above-mentioned private investors said that they would consider gradually adding positions, "but the action of adding positions will not be too positive. After all, 5g stocks are still expected to rebound in a certain direction. After all, it is not a part of the market driven by the development of science and technology stocks. In addition, for epidemic vaccine, or vaccine upstream and downstream stocks, we can also consider appropriate warehouse

Another private-equity personage also said, "with a trillion trading volume, sentiment converges again, and bulls have the determination to go further. After the trillion yuan and the re accumulation of popularity, there should be another attack in the short term. "

However, the above-mentioned private investors also suggested that "those who are in a hurry to enter the stocks which are overvalued or even have already talked about the market dream rate can be sold when they rise."

"It's just that when we focus on how long the trillion trading volume can last, we can't expect the trillion trading volume to continue this way. Once the volume can shrink, the market will be tested. " The above-mentioned private investors are reminded.

Morgan Stanley Huaxin Fund believes that the early market continues to rise, the valuation level of a shares has been significantly repaired, and the subsequent allocation will be more balanced, and more attention should be paid to the segmentation areas with high performance certainty. In the medium and long term, the market is still in the expectation of quarterly profit recovery and relatively abundant liquidity. In the structural direction, it will continue to focus on high-quality consumption, technology leaders, real estate completion industry chain and optional consumption recovery.