Biden has spoken again. To sell his infrastructure and tax plans, he once again mentioned China in his speech.
On the evening of May 7th, China Mobile disclosed New York Stock Exchange's reconsideration decision on the delisting decision of American Depositary Shares: On May 6, 2021 (EST), the New York Stock Exchange maintained this decision. Decide. This evening, China Telecom , China Unicom, and China Mobile all said that the New York Stock Exchange maintained the decision to delist the company's American depositary shares.
In terms of A-shares, today's fluctuations continue to adjust, with the ChiNext Index holding a heavy position of 3.46%, the largest drop in the past two months. The transaction volume between the two cities was 883.9 billion yuan, showing a downward trend in heavy volume. On the disk, sectors such as coal, gold, steel, and paper were active against the trend, and sectors such as medical beauty, semiconductors, and consumer electronics were among the top decliners.
Biden: The Chinese are taking our jobs.
"The Chinese are taking our jobs. They have invested hundreds of billions of dollars in research and development." President Biden touts his "American Jobs Plan" to the audience. Unsurprisingly, this time China was forced out again as a tool for Biden to sell plans such as infrastructure and taxation.
Biden said that investing in projects such as infrastructure in the United States could create as many as 16 million high-paying jobs and have a ripple effect. He also declared that he expects to spend $600 billion this year to make sure Americans "buy American."
The speech released by the White House official website shows that at the beginning of the speech, Biden emphasized the importance of investing in infrastructure and claimed that it was a "once-in-a-lifetime opportunity" to rebuild a fair, resilient and competitive. economy.
In the United States, 45,000 bridges have structural defects; every 5 miles (about 8 kilometers) a section of highway is damaged; infrastructure problems cost more than 160 billion US dollars a year...Biden to the audience to list the poor infrastructure in the United States one by one , and regretted that the United States "was also a world leader."
"When we make all these investments, we want to make sure of one thing: we're buying American."
Biden said the US government will spend about $600 billion this year to ensure that everything from the deck of an aircraft carrier to everything else, Every component will be manufactured by American companies, American labor, and through the American supply chain.
U.S. Treasury interest rates rose and gold strengthened
Beijing capital slightly net bought A shares of more than 380 million yuan, by market, Shanghai-Hong Kong Stock Connect was sold by a net 1.282 billion yuan, and Shenzhen Stock Connect received a net purchase of 1.662 billion yuan . COSCO SHIPPING Holdings, BOE A, Mindray Medical, Ningde Times, etc. actually received net purchases of more than 100 million yuan from northbound funds, while Ping An, Kweichow Moutai, Hengrui Medicine, Wuliangye, etc. were net sold for more than 100 million yuan.
Due to the rising interest rates of US Treasury bonds and the strengthening of crude oil, the international gold price has recently strengthened again after 8 consecutive months of adjustment, reaching the $1,800 mark again. Industry insiders said that under the background that the moderately loose monetary policies of various countries have not changed significantly, and the US dollar inflation expectations continue to rise, this round of gold's rebound is expected to continue in the medium and long term.
In addition, from the consumer point of view, China and , India, and are the world's first and second gold consumers, respectively. In the first quarter of 2021, gold demand in both countries recovered. In the first quarter, the demand for gold in China rose to the pre-COVID-19 level, and gold consumption increased by 93.9% year-on-year. Meanwhile, India's official gold imports hit their highest level in a decade in March.
According to the just-announced 2021 quarterly report statistics, the overall revenue of the gold sector increased by 25.1% year-on-year, and the net profit after deducting non-returning to the parent increased by 80.7% year-on-year, showing the strongest momentum of improvement.
Under the combined effect of multiple positives, the A-share gold sector saw heavy volume for 2 consecutive days after the May Day. Jinyi Culture, Chifeng Gold, and China Gold traded at their daily limit today, while Intime Gold, Zhongjin Gold , and Shandong Gold also rose strongly.
Industrial Securities said that it is difficult for the yield of U.S. bond to fall sharply. The Federal Reserve is likely to release tightening signals more intensively, and tightening expectations will push U.S. bond yields to continue to rise. Moreover, the United States has begun to put pressure on the rapid rise in energy prices, and the overall inflationary pressure is controllable. In general, there is limited room for gold to continue to rebound sharply, and it is more likely to maintain shocks in the short term.
The coal index soared
After the festival, the coal opened higher for 2 consecutive days, and the sector index soared 8.14%, hitting a new high in more than 3 years. Waiting for today's daily limit, Jinkong Coal Industry, Open-pit Coal Industry , Lanhua Kechuang, etc. have risen sharply.
Due to various inspections such as safety and environmental protection, the production site has been restricted, and the market supply has fallen sharply. The superimposed cement, chemical and other industrial enterprises have high demand for coal and electricity, and the coal inventory in power plants is at a low level. The peak summer season is approaching. Willingness is strong. Since February, coal prices have been in a unilateral upward channel. During this period, the main contract of thermal coal futures has risen by more than 40%, hitting a record high.
Open Source Securities pointed out that under the trend of good coal prices, the improvement trend of coal companies' performance will be established, and the stability of performance may be further highlighted in the future.On the basis of stable performance, some leading coal companies have increased the guaranteed minimum dividend level, actively rewarded shareholders, and highlighted long-term investment value. On the other hand, factors such as the deepening of national reforms and the transformation of new industries will also inject strong performance growth momentum into relevant coal companies. Overall, the coal sector valuation is still at a low level, optimistic about the recovery of the coal stock valuation.
Apple's concept trend is weak, and the recent heavy volume has fallen for 5 consecutive days. According to data released by Canaly, a foreign data research organization, in the first quarter of the European smartphone market share, Apple slipped to third (19% market share), surpassed by Xiaomi (23% market share). Today, the Apple Concept Sector Index plunged 2.86%, and Goertek shares, Jintuo shares, and BOE A all tumbled.
What will happen to the market outlook for A shares?
Regarding the trend of A-shares in the market outlook, Northeast Securities said that the time for a higher index winning rate may be from the end of May to the middle and early June, which is a good time window for the index repair before and after the “July 1st” layout game. It may be a period when the policy environment has improved after prices have peaked. In terms of configuration, you can pay attention to banks with low valuations, central SOEs with Chinese prefixes, corresponding Hong Kong stocks with high AH premium rates, and resource price hikes with both price increases and carbon neutrality.
