Category: Money tips Release Date: 2006-05-29
Source: Ling Xue-wen Guangzhou Bandung
Abstract: Wednesday Shenzhen and Shanghai stocks in the previous session on the basis of stabilization bottom for further shocks rebound of the stock market, while the index gained momentum from stocks of the broad based; of these, China Ocean as well as the strong limit-weight financial sector, and other indicators of stock active in restoring the confidence of the performance of the market played a positive role in promoting. In the article I mentioned in the previous session, short-term effectiveness of the Shanghai Composite Index recovered 4,000-point mark and break the integral system of repression of the short-term moving average, would constitute a significant impact on market psychology; from Wednesday the market bounced back to regain a steady shock 4000-point mark for the good integer performance, bad policy is expected to gradually digested by the market, while living in the mainstream of the performance increased investment is expected to re-led the recent Quotes development. In the specific asset allocation, only choose a good variety of growth in order to get beyond the market return on investment. The performance of listed companies to achieve extraordinary growth in the main channel from the industry's sustained prosperity and industry of mergers and reorganizations, as well as the injection of quality assets.
Today's market conditions
Bottom stabilization in the previous session, based on the Shanghai and Shenzhen stocks in individual stocks Wednesday under the impetus for further broad based rally, where the Shanghai Composite Index back above the 4,000-point mark, the two cities in order to re-stock index closed at Yang Xian turnover a slight increase compared to the previous day, the total turnover of about 203.885 billion. Index runs from the day the trend point of view, early in the Shanghai Composite Index opened 3985.72 points, and finishing slightly higher after repeated shocks, particularly in the China Ocean stimulated by daily limit, market sentiment clearly active, and in the financial sector, asset restructuring and asset injection, as well as some institutions Shigekura species led to further gains after hitting a high shot up to 4090.72 points, the successful recovery of 4000-point mark and to break through 20 days of an integer moving average resistance. Shen Chengzhi accordingly to maintain the pattern of shock rebound.
From the disk situation, the situation stocks broad based, including the Shenzhen market, the ratio of 546:86 Number of Change, Change Number of the Shanghai market ratio of 694:165. Or table, the daily limit individual stocks increased significantly, including the Chinese l shares, Wuchang fish, Tung Wah Holdings, the Three Gorges water conservation, Zhongguancun, the victory of shares, etc. 51 non-ST stocks daily limit. The specific point of view, yesterday listed China COSCO (601919) continue to be strongly sought after, and the main funding strong limit-limit-driven in the Unit, some airport highway, ports, shipping and other transportation home loans to borrowers such as Shanghai airport, China Shipping Development, China Merchants ships, Chongqing Road & Bridge, the North Sea port, and so active. Second, the overall performance of the financial sector to become more active, such as China Life, Ping An of China, Bank of China, Industrial and Commercial Bank, Industrial Bank, Shanghai Pudong Development Bank, the financial sector's good performance in promoting the index rose to become a major driving force. In addition, asset restructuring, asset injection with the overall market shares are also subject to perform well, such as Hunan Post, science and technology, China Petroleum Chemical Building, Anyang Iron & Steel, Shennengyuan, Eastern Group.
Wednesday, the Shanghai Composite Index opened to 3985.72 points, up 4090.72 points, the lowest 3948.29 points to close at 4078.60 points, up 105.23 points, or 2.65%, turnover of 130.071 billion; Shen Chengzhi opened 13,309.34 points, the highest 13,641.98 points, the lowest 13,154.50 points, close of 13,583.70 points, up 364.29 points, or 2.76% on turnover of 73.814 billion.
In news today
Wednesday mainly in the following information for investors to focus:
1, it is learned, the first only innovative UBS SDIC Fund --- Equity Classification Rueifu Securities Investment Fund has passed the regulatory approval, will be distributed to the public two weeks later. Compared to the existing closed-end, open-end fund, UBS SDIC Rueifu Innovation Fund will have both the risk-return characteristics of the two. Industry pointed out that as a special priority to the risk of Rueifu distribution and the corresponding ratio of state revenue would increase investor confidence in the holding of the fund shares, effectively reduce the possibility of large-scale redemptions occur, to a certain extent, reduce the open-ended to help or contribute to the fund.
2, in the spot market continues to supply under pressure yesterday, the two major grain varieties of domestic corn and wheat futures prices hit a new low this year. Industry veteran, said 6,7 month basically stable domestic food supply and demand situation, there summer harvest, the basic food prices can be sure the chain declined. Prior to that, National Bureau of Statistics data show that food prices are driving China's May CPI rose the most critical reason for. In view of food prices accounted for the weight of China's CPI up to 33%, food period, spot prices in June, after simultaneous weakening, CPI data further the possibility of gradually reducing the higher, the central bank in the short term if re-used tool to raise interest rates there have been some variables .
3, the National Development Bank (referred to as "CDB") yesterday afternoon a ceremony held in Hong Kong bond issue, announced June 27 to July 6 to issue Renminbi bonds in Hong Kong, the bond sale targeted at institutional and individual investors, duration two years, the nominal annual interest rate of 3%. The high volume of bond issuance does not exceed 50 billion yuan, including the lowest retail bond issuance to 10 billion yuan. This is a domestic financial institutions in the Region is only the first renminbi-denominated bonds issued.
4, According to sources, the twenty-eighth session of the Tenth National People's Congress on June 24 to 29 held the agenda of this meeting is to discuss the interest tax relief granted to the State Department authorization. This means that since 1999 since the implementation of interest or changes in tax policy. In this regard, experts suggest that negative interest rates in the current circumstances, the interest rate to adjust towards tax policy can be divided into, first interest tax from the current level of 20% to 10% in order to improve the current after-tax real interest rate is negative-resident deposits situation.
Comment on market outlook
Wed bottom Shanghai and Shenzhen stocks in the previous session on the basis of stabilization for further shocks rebound of the stock market, while the index gained momentum from stocks of the broad based; of these, China Ocean as well as the strong limit-weight financial sector, and other indicators of an active stock restoration of confidence in the performance of the market played a positive role in promoting. In the article I mentioned in the previous session, short-term effectiveness of the Shanghai Composite Index recovered 4,000-point mark and break the integral system of repression of the short-term moving average, would constitute a significant impact on market psychology; from Wednesday the market bounced back to regain a steady shock 4000-point mark for the good integer performance, bad policy is expected to gradually digested by the market, while living in the mainstream of the performance increased investment is expected to re-led the recent Quotes development.
Stage of the stock market in recent trends point of view, constraints Quotes to develop and market psychology plagued the major negative factors include the upward adjustment of stamp duty rates, abolition of interest tax, inflationary pressure is expected to increase interest rates, export tax rebate policy adjustment, issue special treasury bonds as a national foreign exchange investment company start-up capital and market expansion and size of the non-lifting pressure. However, the trend of the recent stock volatility as far as the overall market valuation levels and structural constraints, the above-mentioned negative factors, the market is undoubtedly larger and eventually lead the market in the short term consecutive panic of collapse. In my opinion, although the operation of the market environment has become more complex, but judged that the fundamental logic of the factors afternoon to run point of view, the performance of listed companies growth and ample liquidity support is still no fundamental factors that reverse the signs.
Worthy of investor concern is to observe Wednesday's market performance, on the one hand Stock Quotes very active in promoting the index rose on the other hand noted that a major driving force is the weight of the financial sector, and other indicators of active stocks. I had a point repeatedly emphasized, including the weight of the financial sector, and other indicators of core assets, including shares will certainly be an important driver Quotes healthy development momentum. Moreover, from a fundamental point of view, the financial weight of plate or other blue chip varieties, there is growth in the valuation and performance advantages of a good forecast. Therefore, from this perspective, the core assets will continue to be the backbone of the development of the market outlook Quotes.
In the meantime, the market faces an increasingly complex operating environment, and do not have a significant advantage of the market's overall valuation of the level of objective conditions, the structural differentiation of the situation will be further extended, so the specific aspects of asset allocation, I believe that our only choice is a good growth varieties in order to get beyond the market return on investment. The performance of listed companies to achieve extraordinary growth in the main channel from the industry's sustained prosperity and industry of mergers and reorganizations, as well as the injection of quality assets.
