Category: Money Tips Date: 2006-07-12
Last week Market Review: Investors sue to paragraph broader market stabilized Education rebound
Last week, the broad market rebound bottom. The policy aspect becomes clearer, a number of so-called bad gradually been clarified, investor confidence has stabilized. Began last Tuesday, prior period adjustments are more adequate bank stocks led broader market rebound, while the asset injection and the overall listing of subjects continues to be the disk of the most active hot spots. Last week, A shares the main index of Jun Cheng broad based trend, in which heavyweight led the Shanghai and Shenzhen 300 (2520.262,34.87,1.40%), the Shanghai Shenzhen 180 and 100R (2642.502,39.93,1.53%), etc. component index on the Shanghai Composite Index rose more than.
Pattern from the market perspective, according to days relative to the market characteristics of index, a market capitalization of the stock market is still out from the big signs.
Significantly larger than small-cap plates or large capitalization, and turnover is also much higher than the large market segment. In addition, the lower the absolute price, the high PE stocks and losses in stocks, shares in profit shares perform significantly better in the low PE stocks and blue chip stocks, but obviously not as good as the low turnover PE stocks and blue chip stocks.
From the days relative to the industry index terms, last week, broad based across all sectors, electric power, machinery, components, water supply, car auto parts, agriculture, transportation, media plate among the biggest gainers, including, electric power, machinery, automobile, delivered with a performance bonus and asset injection is expected to expectations, but the agricultural sectors were "Document No." agricultural support policies to stimulate In addition, components, chemical fiber, medicine, industry or are recovering more. The last few weeks a continuous adjustment of the financial Last week, Qi Wen, rose slightly to stabilize the market has played a pivotal role.
Focus this week: the performance effects of the wave of Chinese New Year
Annual performance of A shares of a substantial increase in performance to promote the gradual deepening of wave Quotes significant increase profits of industrial enterprises for the A-share listed company performance and high growth are expected to provide strong support.
According to the National Bureau of Statistics 2006, from January to November, the National-scale industrial enterprises realized profits of 1.6532 trillion yuan, an increase of 32% over last year's growth rate of nearly 20 percentage points.
In 2006, a substantial increase in performance of listed companies is a foregone conclusion. According to wind statistics, as of February 11 have been published annual report of the 97 listed companies in 2006 net profit of 8.571 billion yuan, growing 73.45% compared with 2005; the end of the distribution of profits available for shareholders, a total of 16.247 billion yuan more than in 2005 the end of growth of 46.21%. Results already published notice of the 679 listed companies, the good news far more than reporting only bad news. One pre-growing 254, continued surplus of 9, and reversing losses of 160, a slight increase of 41. The performance of the company to remove uncertainty, the losses, pre-increase, a slight increase, four types of good news the company continued surplus 68% of the total.
Machinery and equipment (including automobile, engineering machinery), metal and nonmetal (including non-ferrous, steel, cement, ceramics), pharmaceutical, IT (including communications and electronic, etc.), chemical and other industries will reap a profit surprise. As for the February 11, 2007 issued notice to 679 listed companies for analysis, pre-largest industry by number of companies are machinery, metal and nonmetal, chemical plastics, wholesale and retail, textile and garments, food and beverage, information technology, medicine, electronics and other industries that pre-increasing losses, the company reported earnings and a slight increase in total coverage of 355 companies, accounting for 76% of the total number of companies reporting good news.
A harmonious society and promoting consumer stocks holiday effect New Year Quotes New Year's week is the last trading week, from the holiday effect analysis, the Spring Festival is the most important holiday, looking forward to reunion auspicious Chinese New Year before the A-share market gains an absolute large probability event. This tranquil and peaceful rally should be expected before the holiday thing, but to focus on Chinese New Year Quotes of investment products, in addition to the above-mentioned annual performance growth stocks outside the industry, we have recommended and the Spring Festival-related stocks, such as, transportation ( in particular the railway), automotive, food and beverage, medicine, retail, tourism, hotels, a leading consumer services stocks, these stocks short-term, middle investments are appropriate, in which the value of long-term investment with China's economic growth pattern as well as China The Government's strategy to link.
At present, the Chinese government to build a harmonious society is the biggest political task. "Building a harmonious society and realize sustainable economic development," China's economic development to a certain stage of reality and the future and giving them full consideration, the starting point for economic development of new requests, this connection, the requirement of technological innovation-based economy in the to achieve intensive-type growth; the other hand, require a gradual transition of economic development to rely on domestic consumption growth and the general population to share the benefits of economic growth. To achieve economic growth from investment-driven to consumption-driven to a successful transition from the economic power of China's economic power, an important condition for change, but also the follow-up of China's economic growth will be a huge space.
Building a harmonious society, China will appropriately adjust the structure of financial expenditure, focusing on greater education, health care and social security and other items of public finance spending. On the one hand, will focus on improving the income level of low-income earners, and strictly enforce corporate minimum wage system, to expand the proportion of middle-income earners, on the other hand, to further enhance the level of social security, which could be the stabilization of the expenditure is expected to enhance people's consumption confidence, the release of savings, improve the people's consumption tendency to increase consumer demand.
In 2007 the rate of growth in Chinese consumption is expected to big turning point. Analysis also has a high savings rate in Asian countries, Japan, South Korea and Thailand in the industrialization phase of the relevant data, consumption rate of 60% of the consumption of the three countries of the bottom line to make way for investment, after which all recovered. Qu Jiang on the world investment rate and consumption rate on the rise inflection point of view, this inflection point occurred at about 1000 U.S. dollars per capita income. China's final consumption, the proportion of GDP, from the last century, 80 years more than 62% in 2005, 52.1%, household consumption rates have fallen from 48.8% in 1991 to 2005, 38.2%, covering a historical low levels. China's 2005 per capita GDP of 1742 U.S. dollars is expected in 2006 will reach 1950 U.S. dollars in 2007, this turning point is imminent. In particular, in 2007, along with the WTO transition period, foreign banks full access to, consumer credit will be rapid growth in spending power so as to promote the full release. In accordance with international experience, in the 1000-3000 U.S. dollars per capita GDP between the period of the fastest-growing consumer credit, consumer credit in China there is huge room for development.
Week operation strategy: holding annual performance shares and preferred the Chinese New Year festive spending shares this week, A-share market will continue to maintain a strong upward pattern. Short-term concern about Chinese New Year Quotes stocks, including railways, food and beverage, medicine, business, tourism and hotel industries leading shares. Midline to the following stocks, 1) financial stocks and real estate stocks rebound opportunities; 2) in technology stocks, in 2007 a quarter of Buying tech stocks a good time, science and technology industry, performance turning point has emerged; China's economic growth to innovation model change is the continuing driving force for technology stocks; solution to the current spread of the liquidity problem, the best way is to lead to excess liquidity in China's most need to develop science and technology industries. We are optimistic about 3G communications, electronic components, computer hardware and software and so on. 3) Assets under the theme of the breakdown into investment opportunities, in 2007 the assets into the A-share market will reach a climax. Concerned about the railway, military, iron and steel, nonferrous metals, electric power, electronics and information, shipping and other industries as well as the overall listing of the assets into opportunities.
