At the style level, the growth styles of large and large markets and value have been severely differentiated. Pro-cyclical and low-valuation value sectors such as banks, real estate and food and beverages closed slightly higher. In the early stage, the growth sectors such as powe

Reporter Du Meng

Yesterday, the market continued to pull back sharply. The pullback for many consecutive days has aroused the attention and concern of investors. At the style level, the growth styles of large and large markets and value have been severely differentiated. Pro-cyclical and low-valuation value sectors such as banks, real estate and food and beverages closed slightly higher. In the early stage, the growth sectors such as power equipment, new energy, machinery, automobiles, and nonferrous metals led the market to decline.

Wind data shows that since August, the net value of a total of 28 funds has dropped by more than 15%. This has also brought the net value of many funds back to the sluggish state before this wave of rebound. Wind data shows that a total of 6,263 funds have still had negative returns this year.

As the previous rebound pioneer, why did new energy sector suffer severe setbacks?

Jiashishi Wealth said that changes in policy changes in Europe and the United States related to China were the main reasons for the decline. Relevant proposals have impacted the high-profit sectors in the early stage, including photovoltaic and the new energy vehicle industry chain.

Morgan Stanley Huaxin Fund believes that it is mainly affected by external events, coupled with geopolitical risks, which has caused the market's concerns about the export demand for industrial chains such as photovoltaics and new energy vehicles, and has become the main driving force for the market's downward trend.

, while domestic investors are worried about whether the new energy track is overcrowded. A research report released by the Economic and Financial Research Institute of Industrial Securities on September 2 stated that the current congestion of new energy has dropped to a medium and low water level.

"At the end of April, we were bullish at the bottom of the 'new half army'. One important reason is that the crowding index created by Xingzheng Strategy has dropped to a historical low, and the significant increase in May and June has once made the new energy congestion close to the historical high. However, after experiencing the volatility, differentiation and rest in July and August, the congestion of new energy has dropped to a medium and low water level. Among them, the congestion of lithium mine , automobiles, new energy vehicles and other subdivided directions has dropped to a relatively low level." Industrial Securities said.

Chen Li, the global chief strategy officer of Dongwu International, said at a recent strategy meeting that the current allocation ratio of equity-oriented public funds to new energy has reached an astonishing 40%, which is a high point that has never been seen in the history of A shares . He believes that the macro assumption corresponding to this allocation ratio is that liquidity is relatively loose, economic highlights are concentrated in a few tracks, global inflation can be suppressed, and the energy crisis will continue. "We can't say that this assumption is wrong, but I personally think that this assumption will have some fragility in the next six months."

also has an international rating agency expressing concerns about the profitability of electric vehicle companies. Fitch Rating released a report on September 13 saying that despite the sharp increase in China's electric vehicle sales in the first half of 2022, most Chinese electric vehicle companies except BYD are still difficult to achieve profitability. In the second half of the year, the losses of leading electric car companies may narrow, but most electric car companies are unlikely to achieve a break-even at the EBIT level in the next 12-18 months.

Huaxia Fund stated that in the current chaotic period of style, we should make preparations to reduce volatility. The current logic of bearish growth is more about the congested growth of the track and the high valuation of some sub-sectors. However, the investment of growth stocks is more closely related to demand prosperity, performance fulfillment, valuation and return ratio, etc. There are still opportunities beyond expectations next year, and the logic of completely bearish is difficult to gain a foothold.

From the perspective of responding to risks, it is currently in a "chaotic period" caused by the reduction of risk preference . It is recommended to prepare both hands to balance industry allocation to reduce the volatility and withdrawal of growth sectors: on the one hand, the economic-related value sectors pay attention to the allocation opportunities of cycles (coal, oil transportation), white appliances , and banks; on the other hand, further focus on more growth directions during the decline, and optical storage, military industry, smart cars, VRAR, etc. are still worthy of continuing to grasp.

Ping An Fund stated that my country is currently in a critical period of slow economic recovery, and capital liquidity and macro liquidity are still abundant, supporting the recovery of market risk preferences and do not have the basis for continuous sharp drops. At the current stage, we need to find the direction where the molecular side still maintains prosperity and the direction where marginal improvement is strong, balance the configuration, and seize the low-level opportunities brought by the pullback.

Jinxin Fund believes that this market adjustment is a concentrated release of risks at the bottom stage of the economy and belongs to the category of short-term adjustments. There is no need to panic too much. The prosperity of emerging growth industries and the medium- and long-term endogenous growth of the overall economy are still stable. Leading companies in the segments of Pan-Tech-related tracks have significant barriers and long-term risk resistance. Technology innovation and performance growth will be the most lasting driving force for the cross-cycle.

Looking ahead to the fourth quarter, Jiashishen Wealth said that it is optimistic overall about the stock market. On the one hand, the epidemic policy is likely to be significantly optimized. On the other hand, the Fed's interest rate hike may end. The current downturn is the time for the medium-term layout. It is recommended that investors, in light of the family asset allocation situation, comprehensively consider the long and short cycles of future changes in the global political and economic situation, and maintain reasonable equity allocation on the basis of solidly implementing the interest rate chassis.