news

한어Русский языкEnglishFrançaisIndonesianSanskrit日本語DeutschPortuguêsΕλληνικάespañolItalianoSuomalainenLatina

Reporter of China Business Network: Xiao Ruidong Editor of China Business Network: Zhao Yun

On August 12, the market fluctuated and adjusted throughout the day, and the three major indexes all fell slightly. As of the close, the Shanghai Composite Index fell 0.14%, the Shenzhen Component Index fell 0.24%, and the ChiNext Index fell 0.2%.

The trading volume of the Shanghai and Shenzhen stock markets today was 495.9 billion yuan, down 67.2 billion yuan from the previous trading day. The trading volume fell below 500 billion yuan, hitting a new low since May 25, 2020.

Overall, more stocks fell than rose, with more than 3,600 stocks falling in the entire market.

In terms of sectors, environmental protection equipment, new crown drugs, traditional Chinese medicine, oil and gas and other sectors had the largest gains, while education, real estate, tourism, ST sectors and other sectors had the largest losses.

The index fell slightly and individual stocks did not fall across the board. A-shares seemed unremarkable today.

But what is outrageous is that the market turnover hit a "super low" level - the three cities of Shanghai, Shenzhen and Beijing totaled 498.8 billion yuan.

Maybe just looking at the numbers, you can't feel how low it is, let me put it this way:

Currently, there are more than 5,300 listed companies in the entire market. If you divide it equally, the transaction volume of each stock cannot even reach 100 million yuan.

As of the close, the stock with the largest trading volume in the entire market isPublic Transportation(3.525 billion yuan); the most "dismal"*ST WeiChuang、ST Xuefa, the transaction volume was only more than 300,000 yuan throughout the day. How should we view this?

How rare is today's land volume?

As mentioned yesterday, northbound funds have been flowing out recently, the short-term profit-making effect has been weak, and the market liquidity is under pressure in August, which may lead to sluggish stock market trading.

Today's A-share trading volume is close to double the level in 2020, which also confirms this concern.

Huafu Securities research report shows that last week (August 5 to 9), the trading activity of various broad-based indexes declined further compared with the previous week.

However, the effects of the reduction in volume may not all be negative.

From the market perspective, all three major indexes closed slightly lower today, with intraday fluctuations, but the amplitude was much smaller than last week. Previously, we often complained about "weak upward attack", but correspondingly, when the market volume shrinks, funds are not likely to smash the market vigorously, but tend to be flat.

Even if a large-volume decline occurs at the bottom, there will be an expectation of a "last drop".

According to China Securities Journal, some analysts said that since 2021, the market's land volume has basically maintained a level of more than 500 billion yuan, and the current transaction volume is in the land volume level area. Since 2020, when the market has established an absolute land volume for the year, it will rebound in stages in the short term. The largest rebound occurred in 2020, when the absolute land volume level of the market fell below 500 billion yuan. On May 25, 2020, the transaction volume was 482.5 billion yuan, and then the market ushered in a reversal.

Of course, in response, ordinary investors should avoid uncertain operations at this time, and consider "long-term holding" or "wait and see" more; the real signal of a change in the market must be the "arrow through the clouds" with a large volume of upward attack.

COVID-19 drugs and environmental protection concepts rose against the trend

From the perspective of sectors, there are two major directions of counter-trend rise today, and they are both stimulated by relatively timely news; but how they will continue to rise in the future remains to be seen.

Direction 1: Pharmaceutical sector led by COVID-19 drugs

The direct stimulus from the news is that the overview of the provincial statutory infectious disease epidemic situation in June and July 2024 released by the Guangdong Provincial Bureau of Disease Control and Prevention shows that the number of new coronavirus infections in Guangdong Province was 8,246 in June and 18,384 in July, an increase of more than 10,000 cases.

According to the Chinese Center for Disease Control and Prevention, from July 1 to 31, 203 new severe cases of COVID-19 infection and 2 deaths were reported in 31 provinces (autonomous regions, municipalities) and the Xinjiang Production and Construction Corps.

Recently, many people on social media platforms have said that they have tested positive; the World Health Organization said that the abnormal increase in new coronavirus infections in the summer deserves attention.

Zhang Wenhong, director of the National Center for Infectious Diseases and director of the Department of Infectious Diseases at Huashan Hospital affiliated to Fudan University, said that the new coronavirus infection is currently in an upward stage in July, but the overall trend shows that the overall number of patients seeking medical treatment for this infection is still lower than the peak in autumn and winter last year, and will not cause a serious disease burden on current medical resources and population.

But the panic caused by the "positive" virus is actually limited, and market funds are more likely to be "taking advantage of the situation."

In fact, pharmaceutical stocks have gradually become active since the end of July. For example, the traditional Chinese medicine sector has increased by more than 10% since July 30.

From a comprehensive market perspective, the pharmaceutical sector has seen a series of favorable policies since July, coupled with low valuations and low institutional positions, which have been beneficial at the trading level.

Direction 2: Environmental protection concept

Just last weekend, the "Opinions on Accelerating the Comprehensive Green Transformation of Economic and Social Development" (hereinafter referred to as the "Opinions") issued by the Central Committee of the Communist Party of China and the State Council was officially announced to the public. This is the first time that a systematic deployment has been made at the central level to accelerate the comprehensive green transformation of economic and social development.

The "Opinions" put forward quantitative work goals for different fields: by 2030, the scale of the energy-saving and environmental protection industry will reach about 1.5 trillion yuan; the proportion of non-fossil energy consumption will increase to about 25%, and the installed capacity of pumped storage will exceed 120 million kilowatts; the carbon emission intensity of unit turnover of operating vehicles will be reduced by about 9.5% compared with 2020; the annual utilization of bulk solid waste will reach about 4.5 billion tons, and the output rate of major resources will increase by about 45% compared with 2020, etc.

In addition to the directly related "environmental protection equipment" sector, the news also led to the afternoon movement of hydrogen energy concepts. The "Opinion" proposes to promote the development of the entire chain of hydrogen energy "production, storage, transmission and use".

According to CCTV Finance, export orders for electrolyzers, the core equipment for producing hydrogen, have increased rapidly this year. Industry insiders said that currently, there has been a significant increase in green hydrogen projects under construction and planning in many regions around the world.

Daily Economic News