Category: Money tips Release Date: 2006-08-15
Source: Huatai Securities Author: Chen Huiqin
Mon cities Tiaokonggaokai, finance, real estate has taken the lead, machinery, automobile, media stocks are also a strong trend. As the shares of Industrial and Commercial Bank of China targets almost daily limit, resulting in the Shanghai Composite rose 3.93%. Why the two cities will appear high speed bull market?
Background "" "
There are reasons for emergency pull-high
Monday market in the context of consolidation last week, has continued to accelerate in 2245 points, rose above shows the money was fairly abundant at the end of the market under conditions Jiangshibugai current A-share market institutional long-term investment for the positive impact of the market is增加.
RMB appreciation led to abundant liquidity, and institutional change, as well as the merger of the tax system, also have increased the valuation of premium business, which makes the market optimistic about the center line. Next year's release of large blue chips may also be accelerated, while the carrier is clearly the issue of shares can not be completed in the Big Bear city. The giant fund the continuous emergence of the market structure has been further differentiation of investors, the fund in particular, some large fund company's market influence have been further strengthened. We have seen a continuous round of Quotes from the 2100-point rise since the Shanghai and Shenzhen 300 refers to the number of price with the good and the prices are still showing sector rotation, and healthy development momentum.
To the current market strength, plus ample funds side, unless there is a significant negative, stocks in China Life started before the sharp correction in the unlikely event, we believe that the market value at the end of the year institutions and short-term battle to protect the profitability of a huge demonstration effect, the of funds into the stock market will continue to keep the broader market is expected to maintain upward trend circuitous style shocks.
Trend "" "
Reason to rise to more sustainable
Quotes about the year in 2006 to wrap up, when the index used to new highs, we believe that the Shanghai Composite Index continued to rise ascribed to, the high wide shocks are inevitable, because the fund market value of the impulse to do a few trading days in the post - will be slowed down, although the market rose Quotes midline unfinished. However, we believe that the necessary adjustments and rational Quotes go up will make a more healthy and long-term.
2006 Annual Results Announcement imminent rise in the overall profitability, while there are still many fall or loss of performance of listed companies, some of the company's stock will likely decline significantly after the New Year, which is the primary investors need to guard against the risk. Secondly, to continuously update the record when the performance of large-cap stocks due to steady growth, the report is less likely to switch to send a high, short-term increase speed, the market is likely to face significant shocks, it should not blind pursuit of high-risk is an important means to control the . Finally, in a bull market, not only to take precautions against the risk of the concept of speculative stocks, the fund should also be rapid to prevent the stage when the liquidity risk which led to large swings in stock prices.
Strategy "" "
To continue to dig deep to grow the concept of
As the market matures and institutional investment philosophy rules of game to promote the gradual establishment of the all-time high to continuously update the market as a whole when the rising valuation of the investment also need the wisdom and rationality.
We believe that in 2007 the concept of agency will continue to dig deep to grow. Transport in value under the new mechanism, in the performance of growth-than-expected situation, this year's year-end distribution of listed companies be more generous than in any previous year. Therefore, the annual report sent to the transformation of the whole year of high Yejiyuzeng Stock market will be sought after. Investors should be based on multi-year line of sight at the end to make the investment layout, actively tap the market valuation of the core assets and has the potential advantages of variety, a calm attitude towards volatility, investors should look at the long-term, high-quality stocks to seize the opportunity to intervene in the callback. Adjustment for growth in the outstanding performance in 2007 to accelerate the release of stocks, such as co-added resources, Winbond pharmaceutical, mountain pushed shares SHunxin Agriculture Company and other varieties bought on dips. Recently, we see some of stocks due to "small non-reduction" and a serious stagflation, such as Softto, Xu relays, Guangdong Yung-tai, but also concerned about the midline.
