Category: Money tips Release Date: 2005-12-18
Source: Soochow Securities Author: Jiang Fan
Surrounding the Bank of China issued A shares on the market impact of deliberation, finally settled last Friday, all market participants think the market failed unexpectedly calm. Although the volume is still small only half the pre-peak, but the market was uncharacteristically close out a rare 7 Lian-yang, especially last Friday at the Bank of the issue and listing of Datong Coal Industry under the dual pressure remained stubbornly higher, indicating Quotes far than most of us imagine stronger.
7 Lian-yang is a small probability event
Based on our benchmark Shanghai Composite Index in January 1996 of the stock market has bottomed out 512 points, the statistical data, technical form the previous day with Yang K Line is seven times more than is actually not much, also appeared in a total of 5 times.
As for the connection of this 7-yang, neither generated at the bottom, but also of non-produced in the fast ascribed to the way that even the Bank of China released on the market short-term capital face a great impact events, also failed to stop its continuous upward pace, while the last weekend revive a feeling of the start as well as some technology stocks ahead of growth stocks hit a new high, but also to illustrate this is not an ordinary sense of the rebound. As long as there is a re-appeared in Yang Xian, the market is bound to re-evolve into new highs of the stock market. Therefore, we believe that with the new growth stocks, technology stocks rise, as well as large capitalization stocks short-term re-stabilized, even in this seven-yang can be used as a prelude to a record high Quotes.
The new call for change was underway fried
For the last week's market, this IPO shares in the resumption of work after the first day of the international market, the lack of a rational crazy speculation and subsequent 4 consecutive lower limit is undoubtedly the biggest things to watch for. While listed on the first day of the new shares started on a substantial speculation, the Chinese stock market has always been a unique landscape, but such hype has a lot to frustration. Value investing, said the new wave of North Korea where they have become no longer exist. Coincidentally, last Friday the second listed Datong Coal Industry, the market speculation is also a time for its glaring.
This shows that A-shares after the share reform despite considerable changes in the market, but some of the speculative market participants to change the mentality and the stock is no different from before. This will contribute to an atmosphere of speculation in the market for the short-term market, it is not a good thing. Because it has withstood the test of the value of investments bear the banner, there are likely to be re-subversion. Therefore, we believe that with the era of market access agency game, the current trading system needs to make major changes, such as the T +0 system, short mechanisms, once implemented, can be technically contain such a "one-stop" type of evil fried. Otherwise, the great bull market in the future, will inevitably lead to speculation of funds involved in an increasing number of results, the stock market bubble in turn a large number of man-made produce. In this regard, the proposed management of targeted measures must be introduced.
Stock selection is the second half of the time
For the A-share market, 2005 was a turning point in the institutional market in 2006 of a turning point, this point of view I believe no one would query. Even today, many individual stocks rose over the past year has been amazing, but we think this is just the beginning, because this is the most typical performance of the initial bull market.
The reason is simple, more and more stocks hit record highs, but also in the shares of many companies are committed to reform future performance will be increased significantly. Continuing appreciation of the RMB against the backdrop of a growing number of off-site resources, particularly the real estate funds, on-going back into the stock market. Therefore, for large funds, the current market readjustment is their best chance to bargain-hunting buying. Therefore, in the bull market to adjust what is terrible?
Recently, a number of different plates contrarian stocks strong, as in the G-pass Portuguese wine, G old cellar, G good housekeeping growth potential represented by the second-tier consumer company to G Xia, G in the record as the representative of the 3G Direct benefit from the company to G, 100, G Sui friendship on behalf of the leading regional commercial retail companies to G Fengle, G, represented by the new farmers the agricultural companies to G in the soft, G electric widely on behalf of technology companies, etc. a lot of money are all narratives are actively looking for the next round of investment opportunities.
Thus, with the share reform into the final end of the second half of the stock-picking strategy eventually will be re-transferred to the company's growth and value of the excavation on. By screening, we believe that, including the banking and securities represented by the financial sector in order to 3G, digital television, consumer electronics and new energy, represented by new technology industries, the future of reasonably priced small plates listed companies as well as those with the strategic value of significance large-cap stocks will be the agency Jiancang and configuration the preferred portfolio. In addition, the overall market, foreign M & A concepts and the Beijing Olympics section, will be the star of a local time period.
