July 7th stock market review: Yang Bao Yin, return to the rising rhythm?

Xinhua Finance, Beijing, July 7 (Mu Hao) On Wednesday, the Shanghai and Shenzhen markets both opened low. The three major stock indexes fluctuated and rose at the beginning of the market. The ChiNext Index took the lead in turning red and gradually expanded to 3%. The Shenzhen Component Index rose. Over 1%, the Shanghai stock index is relatively behind. In the afternoon, the gains of A-shares expanded further, the ChiNext index returned to above 3,400 points, and the index fell slightly in late trading. It is worth noting that the turnover of the Shanghai and Shenzhen stock markets exceeded RMB 1 trillion for the fifth consecutive trading day. As of the close, the Shanghai Composite Index rose 0.66% to 3,553.72 points; the Shenzhen Component Index rose 1.86% to 1,4940.05 points; the ChiNext Index rose 3.57% to 3,409.59 points.


On the board, the electrical equipment, warehousing and logistics, medical care, materials industry, aerospace, chemical, iron and steel industry, non-ferrous metals and other sectors saw the highest gains. Coal mining, petroleum industry, tourism, insurance, telecommunications operations, precious metals, software services, etc. The sector’s decline was high.

Technical side

Li Longshuan, chief investment adviser of the Federal Reserve Securities, believes that the three major A-share indexes rebounded collectively, and the Shanghai and Shenzhen 300 Index stopped falling and rebounded near the annual line. The Zhongyang line indicated a strong signal for the market outlook to attack. Looking at the moving average, the upper 60-day line at 5144 points is a short-term pressure level, and the second pressure is at 5190 points at the July 2 gap. From the perspective of the technical form, it is currently a box finishing form. It can be said that there is pressure from the top and support from the bottom, but it also means that the bottom is moderately sorted. At this position, there are obvious signs of main fund absorption, such as short-term trading volume cooperation. For the lower valuation of the Shanghai and Shenzhen 300 Index, it may be a process of gaining momentum.

July 7th stock market review: Yang Bao Yin, return to the rising rhythm?
Disk Interpretation

Soochow Securities said that short-term structure is more important than positions: in the short term, there is no obvious marginal change in liquidity and fundamentals. We judge that the market in July is still in a turbulent pattern. The current allocation focus is still on positions, and the growth style is expected Continue to the beginning of August.

West China Securities believes that market systemic risks are limited, and it is expected that A shares will still have the characteristics of “structural market”. 1) At the overseas level, it is difficult for the Fed to exceed expectations in the short-term; 2) A-share interim corporate earnings are still on the upward trend. A-share ROE has continued to improve since it bottomed out in the first quarter of 2020. The growth rate of corporate capital expenditure has increased significantly. The growth rate has exceeded double digits for four consecutive quarters. In the second quarter, benefiting from the upward PPI, the upstream resource product industry performance is expected to benefit. A shares Corporate earnings are expected to continue to maintain a relatively high growth rate; 3) At the valuation level, the valuation of A shares is within a reasonable range, and the overall market risk is limited.


Hainan Province issued the “Fourteenth Five-Year Development Plan for High-tech Industries”: By 2025, the output value of high-tech industries will exceed 800 billion yuan

The General Office of the Hainan Provincial Government issued the “Fourteenth Five-Year Development Plan for Hainan’s High-tech Industries”: By 2025, Hainan’s high-tech industries will achieve leapfrog development, which will strongly support the construction of Hainan’s “Three Districts and One Center” and a free trade port. The total scale has been greatly increased, and the output value of high-tech industries has exceeded 800 billion yuan, of which the output value of new-type industries has exceeded 400 billion yuan, and the operating income of the digital economy industry has reached 400 billion yuan. The added value of high-tech industries accounted for 15% of the regional GDP.

The number of new energy vehicles in the country reached 6.03 million, accounting for 2.1% of the total number of vehicles

According to statistics from the Ministry of Public Security, as of the end of June 2021, the number of new energy vehicles in the country reached 6.03 million, accounting for 2.1% of the total number of vehicles. Among them, there are 4.93 million pure electric vehicles, accounting for 81.7% of the total number of new energy vehicles. In the first half of the year, 1.103 million new energy vehicles were newly registered, an increase of 774,000 vehicles or 234.9% compared with the same period last year; an increase of 473,000 vehicles or 74.9% compared with the first half of 2019, a record high. New registrations of new energy vehicles accounted for 7.8% of new registrations of vehicles.

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