In the morning of today, the Shanghai and Shenzhen stock markets fluctuated strongly, and the securities sector performed strongly. As of the morning closing, the Shanghai Composite Index rose 0.30%, the Shenzhen Component Index rose 0.47%, and the ChiNext Index rose 0.61%. Among them, the Shenwan securities sector rose 1.06%, showing outstanding performance; among individual stocks, China Galaxy and Huatai Securities rose 4.47% and 2.65% respectively, and the Hongta Securities , CITIC Securities and other stocks also increased by more than 1.5%.
The securities sector stocks with the highest increase in the morning today
Data source: wind
On the evening of November 29, the China Securities Regulatory Commission replied to the "Proposal on Strengthening, Optimizing, and Expanding to Build a Leading Aircraft Carrier-level Securities Company, Building Four Poles of the Capital Market to Ensure Financial Security" and stated that in the next step, it will continue to encourage and guide securities companies to enrich their capital, enrich their service functions, optimize incentive and constraint mechanisms, increase investment in technology and innovation, improve international layout, strengthen compliance risk control, and actively promote the creation of a leading aircraft carrier-level securities company to promote the sustained and healthy development of the securities industry. In response to the suggestion of "significantly increasing capital investment in large state-owned securities companies through the combination of social security funds, Huijin and China Investment Corporation", the China Securities Regulatory Commission will actively support all types of state-owned capital to inject capital into securities companies through subscribing preferred shares, common shares, convertible bonds, subprime bonds, etc. on the premise of compliance with the law, and promote the securities industry to become bigger and stronger.
However, the trend of the securities sector is difficult to say "reversal". However, since the Shanghai Composite Index hit a recent high of 3042.93 points on September 16, despite the continuous adjustment of the securities sector, funds continued to flow into the relevant ETF. As of November 29, the total inflow of ETF funds of three brokerage firms, Cathay, Huabao and Southern, exceeded 6.5 billion yuan.
Industry insiders suggest that you can focus on leading securities companies, financial technology and other stocks in the medium and long term. The overall market of the securities sector also requires the overall market to warm up. Haitong Securities Xun Yugen said that technology and securities companies will perform better in 2020.
Shanghai Index has 6.5 billion yuan of funds since 3042 points bottom-up brokerage ETF
As of November 29, the Shenwan second-level securities sector index has risen by 34.70% this year. Overall, it ranks among the 32 Shenwan second-level industries, second only to electronics, computers and food and beverages. However, the securities sector has not performed well recently.
Shenwan Securities sector trend this year
Data source: wind, as of the morning of December 2, the closing
Shanghai Composite Index entered adjustment after hitting a recent high of 3042.93 points on September 16, and the securities sector also followed the market to fluctuate and decline. From September 16 to November 29, the Shenwan Securities sector fell by 12.69%.
It is since September 16 that funds have been continuously flowing into brokerage ETFs. Wind data shows that from September 16 to November 29, brokerage ETFs became the A-share ETF with the largest net inflow of funds.
Specifically, the shares of Cathay CSI All-Indices Securities Company ETF, Huabao CSI All-Indices Securities Company ETF, and Southern CSI All-Indices Securities Company ETF increased by 3.841 billion, 2.260 billion, and 967 million, respectively, with an increase of more than 40%. Based on the average transaction price of the range, the net inflow of funds was 3.618 billion, 2.023 billion, and 870 million, respectively, accounting for the top three A-share ETF net inflows, with a total net inflow of 6.511 billion yuan.
From a longer perspective, this year is still a big year for the growth of securities companies' ETF shares. Taking the Cathay CSI All-Indices Securities ETF, which has a latest share of 13.377 billion shares as an example, its share increased by 2.877 billion shares last year, an increase of 393.95%. However, as of November 29, the share of ETFs of Cathay CSI All-Indices Securities Company has increased by 9.77 billion shares this year, an increase of 270.84%, maintaining a rapid growth trend.
Changes in the share of ETFs of Cathay CSI All-Indices Securities Company since this year (weekly) Data source: wind, as of November 29
Haitong Securities Xun Yugen: Recommended technology + brokerage
funds continue to enter the brokerage ETFs have become a precursor to the re-launch of the brokerage sector? What is the future trend of the securities sector, which has been "rest for a long time"?
A private equity person said that the securities sector made efforts in the morning session today, benefiting from favorable policies, but the overall policy is more beneficial to the leading securities companies, but the overall market still needs to warm up the market as a whole. When the overall market performance is not good, it is difficult for securities companies to have a systematic market.
An analyst of a public fund said that in terms of investment opportunities in the securities sector, stocks can be selected from three aspects.First, the leading securities firms, and the strong ones are always strong and have obvious trends. Second, considering that the securities firm's business is highly homogeneous, you can choose small and medium-sized securities firms with their own development characteristics and room for growth, such as Internet brokers. The third is financial technology stocks that provide service support to securities firms. Judging from the current situation, it is advisable to plan securities companies in the medium and long term.
Haitong Securities Xun Yugen believes that looking forward to the whole year of 2020, technology and securities companies will be better. In history, the initial period of the main upward trend of bull markets often rely on banks to drive the index to break through upward trend, but focusing on the overall main upward trend, the profit rise is steep in the industry, which leads to the leading industry. The leading industries in each round of bull market are in line with the background of the times, and "technology + securities companies" are expected to become the leading industry in this round. As for securities companies, financial supply-side reform will help securities companies recover comprehensively. At present, China needs to vigorously develop direct financing represented by equity financing to help the development of emerging industries. Against the backdrop of financial supply-side reform, expanding direct financing and equity financing will surely make the securities industry bigger and stronger. It is expected that various policies will continue to be implemented in the future, and large banks will increase their support for securities firm financing. The issuance of securities firm financial bonds and the increase in short-term financing will help securities firms reduce capital costs, increase leverage ratio, and thus increase ROE. In addition, as the second wave of bull market rise gradually unfolds, the stock market trading volume will increase, the high beta characteristics of securities companies will gradually emerge, and the performance of securities companies can further improve.
Fengjing Capital further pointed out that in the short term, the market will face pressure on investors to fulfill their capital at the end of the year and the pressure of tight overall funds. Without strong external policies, it is difficult for the market to have a large-scale market trend, but there have been some positive changes in the fundamentals of the microeconomics, which has also made certain adjustments to the stock market structure. Whether this sign can continue to be observed, but in terms of the layout next year, this change at the end of the year may be a favorable opportunity to optimize the structure. In the medium and long term, the medium-term trend is relatively optimistic, and the short-term market fluctuates, and the neutral and positive positions continue to be maintained.
(Editor in charge: Zhao Jinbo)
