Category: Money Tips Date: 2006-05-31
The current stock market has been in a bull market, but rather, the stock market right now is an index of bull. In such a market, the rise does not represent the majority of index stocks rise, following the relevant data are illustrative.
Tape October 24 broke through 1,800 points, an integer bit, after 11 trading days to 1897.41 points, the highest on the 7th of this month, during which constantly reaching broader market over the past five years, a new high, broad market gains as high as 7.40% total. But the statistics show, or be able to beat the market during this period, only 209 stocks, only to transactions in 1361 during which A shares 15.36%, up to 85% or less than the index of stocks rose. This one, actually there are 745 stocks fell more than 20% had five. Meanwhile, the heavyweight won the favor of mainstream funding, there are 19 billion in total market value of more than 100 large-cap stocks rose more than 20%, such as Baoshan Iron and Steel shares rose 33.57 percent, Angang Steel rose 30.97 percent stake.
In such a market, stock picking has become particularly important. In fact, this is precisely the direction of the future development of the market, mature market, in fact more so-called "28 phenomenon." Such as Hong Kong Hang Seng Index, has recently touched 19000 integer point and this year's gain was more than 25%. In fact, the Hang Seng Index soared, largely thanks to China Mobile and HSBC Holdings this year, the two heavyweights of the way up. According to statistics, in the current Hang Seng index, the light that the two indicators of stock, they contributed about 40% of the weight, while China Mobile for 36.65 Hong Kong dollars from the big end of last year 7th of this month rose to the highest 69.70 Hong Kong dollars, or as high as 90.18%.
Present such a "virtual up" in the market, investors need to adapt to more, rather than blaming the market. Then, the context of the bull market in the index, how to choose a good company?
In my opinion, from the "in" prefix companies to look for potential stocks, after all, a simple and effective method.
If a listed company referred to precede the word "China" word, it is not to be understood as representing the company in the industry a certain image? Such as China Petrochemical, China's petrochemical industry that is the "first"; China Air China, China's aviation industry "first"; Chinese satellite, aerospace industry, listed companies, "first unit" and so on. In fact, such a company in the Hong Kong market more, such as Chalco, China Life, PetroChina, China Mobile, China COSCO, China's rare earth, China Power, etc., basically represent the same industry in China's best listed companies, at the same time, these stocks were among the Hong Kong market is also quite good performance.
At present, the Shanghai and Shenzhen A shares, the listed company before the short title with the word "China" listed companies are: China International Trade, China's Sinopec, China Unicom, China Satellite, China Fiberglass, Chinese software, Chinese High-Tech, China Jialing, Air China, Bank of China, China Wuyi, China's heavy truck and so on. Among these, Sinopec, China Unicom, China Satellite, Air China, Bank of China and other companies, no doubt to a considerable extent, on behalf of this industry "Chinese standard" is worthy of focused attention.
In fact, concerned about the "in" prefix stock is just a thought, simply to illustrate, in the present such a market, we must pay attention to the texture of a listed company, selecting the best in the industry invest in listed companies, while "China" as a short listed companies, no doubt a certain degree of strength on behalf of the company. In this sense, a number of "n-word", "Chinese character head" of the company, no doubt worth investors, such as Huadian Power International, Huaneng Power International, Sinopharm stake.
If we say that the previous A-share market, investors may be more the size of the plate and thus small-cap value stocks tend to get more premium, then, and now may be more attention to the texture of a listed company, that company may dish large , but as long as there is good growth performance, still has room to rise. This happens, investors in the current market structure has a lot to. Because the current market, is clearly not the previous "rules" of the era, but an investment fund, QFII, insurance funds, pension funds and other power agencies compete for a place, which is on the one hand; the other hand, high-quality large-cap stocks are favored, but also and stock index futures, margin trading and other institutional innovations will soon launch the
