Category: Money Tips Date: 2006-04-27
Source: Beijing in the first place
After a sharp oscillation for three consecutive days after the broader market Wednesday in Shanghai and Shenzhen and finally achieved a full breakthrough. In real estate, finance, represented by blue chip companies in order to fund Zhongcang represented by the consumer growth stocks, represented by the value of iron and steel stocks, and finally appeared in the resonance pattern of the overall higher side by side, both the Shanghai and Shenzhen hit a round of Quotes of the broader market a new high, Shen Chengzhi also hit a round Quotes largest single-day rise since, while the recent market has been continuing so-called "28" phenomenon has finally been fully reversed. At present, there are signs that point toward broader market a prelude to the 2000 has officially opened.
1, the four factors that build a broader market internal basis for a new round of offensive
Needless to say, the current fundamental factors that led to a good index to be repeated to achieve the fundamental basis of strong, look very carefully you can generally be attributed to the following aspects:
First, the RMB appreciation as the main line of the current round of Quotes is expected in the next 1-2 years, continue to be strong again important support broader market. Judging from the recent U.S. election situation reveals the news side, since the Democratic Party winning the midterm elections the Democratic Party, which has always stood for the depreciation of the dollar and oil prices low to maintain such policies as the market has basically been given the recognition of the medium-term objective exacerbated the upward pressure on yuan , the recent U.S. dollar against the renminbi has been falling 4 consecutive days, has been close to 1:7.86 mark. Authoritative agencies believe that the coming year, 3-5% appreciation of the renminbi is expected to continue.
The second is a huge capital supply is the current A-share market higher intrinsic motivation to be repeated. According to a recent central bank announced third-quarter monetary policy report, low-interest policy environment will continue for quite a long time the continuity of the foreign trade, capital account surplus will undoubtedly further strengthen the two-market liquidity in the current flooding situation. In fact, recent news has shown, the securities market in October of new capital inflows more than 200 billion yuan, ample liquidity situation can be seen in general, massive capital flows into A-share market index can be repeated leading to the current strength of the other important factors.
Third, a good three-quarter performance of listed companies remain attractive growth and valuation of the market continued to rise to the inherent hot base. Although the cumulative increases in the current round of Quotes has more than 70%, a considerable increase in total number of individual stocks has doubled, but if you carefully examine its valuation, not only did not imagine that high, and many of the valuation of stocks still have a certain advantage, which is a considerable number of species are still able to attract a large number of institutions involved in the underlying causes of high finance. Currently still in undervalued or reasonable number of species, regardless of the card 50, the card 180 or on behalf of the major cities of Shanghai and Shenzhen 300 index of blue chips, according to 2006 results, the average price-earnings ratio is still below 20 times, if taking into account the three-quarter Performance-than-expected growth in the situation in 2006 is expected to continue to the end of the performance better than expected.
4 is repeated around the market's recent strength of the A-share market to continue to provide favorable external support. Europe and the United States, Asia-Pacific stock markets have excellent performance of the Dow, the Hang Seng Index also reaching record highs. Especially the Hong Kong market, as more and more of the broader market heavyweight dual-listed, A shares of the company's high growth has finally received full recognition of international agencies, which led to the recent Hong Kong Chinese bank shares again stronger and more A shares the main reason for a substantial premium. In fact, the recent new highs in the Hang Seng Index is almost entirely from the Chinese, led by shares, especially on China Mobile, China Merchants Bank as the representatives of the communications, financial stocks is to become the most dazzling star of the recent market. The Hong Kong Chinese stock market rose for the A-share market will undoubtedly continue to do more institutional investors ate blue chips gave an assurance, follow-up to do more warm and has yet to be further released.
Second, ample liquidity support of the multiple beneficial to the background, regardless of value stocks or growth stocks, as long as the current valuation is reasonable, is expected to grow well, are expected to become the focus of new entrants chasing funds target.
Recommends specific attention to the following aspects:
One is represented by Sinopec large cap stocks, especially the newly listed, including Air China, Qin Empire and North Star and other "hot", overall valuations are still low, is expected to rise 10-15% of the market outlook is still room for some sound-type Investors can continue to hold, or concern;
Second, good performance, and the explosive growth opportunities with industry, the plate, such as the pre-rose's space industry, the concept of coastal and other of this type. At present, as these species come to an end a temporary rally, the recent convening of the summit will undoubtedly 3G officially opened a prelude to the plate full rose. Recent TeamSun, ZTE, as well as BOCO as the representatives of the leading stocks had sharp strong situation, is expected to tape a new round of offensives continue to have a good performance;
Third, a number of valuation is still significantly low value stocks, there are still opportunities for further strength. In fact, Wednesday, represented by Baosteel and other steel plate rose again the value of shares has been fully demonstrated the power of the outbreak Quotes. Still a lot of similar breeds, such as household appliances, coal, electricity, high-speed and paper industry, etc., there are a considerable number of individual stocks are still significantly higher chance. In fact, Wednesday Gree Electric, the United States and other electrical appliances, as well as Fuyao the re-established blue chip varieties significantly higher, the market has been fully reflected in this follow-up to trend, which investors can focus on.
Fourth, throughout the current round of Quotes has the financial, real estate board, also there is still potential for further gains. Especially in property shares, not only the valuation lower than the international market, but three quarters into the fund holdings of institutions such as key species, while the trend of the increasing appreciation of the renminbi to become real estate stocks at any time the most favorable light weapons, it is recommended to focus on the industry leading shares, as well as pre-or relatively small number of second-line varieties.
