Intertwined short-term market with multiple short-term factors is difficult to break through the structural opportunities of private equity focusing

category:Finance
 Intertwined short-term market with multiple short-term factors is difficult to break through the structural opportunities of private equity focusing


The latest market data from the A-share market shows that major stock indexes such as the Shanghai Composite Index resumed a narrow recess on Wednesday and Thursday after a sustained rebound in the first two trading days of this week. As for the market trend of A shares after the short-term bottom, the overall view of private equity institutions is still neutral.

According to Fan Bo, Vice President of Bedrock Capital, after more than a months adjustment in the early stage, many high-quality A-share stocks have a certain degree of correction, and many of the underlying stocks are in relatively cheap valuation range. At the same time, the inclusion of A shares in the FTSE Russell Index system will come into effect on June 24, and the superposition of these factors is becoming the main reason for the recent reversal of foreign investment. From this weeks market situation, medium and long-term foreign capital flows may continue to improve, and then become the dominant force in a new round of market. On the other hand, since this weeks rise in the market and news positive factors are relatively higher, the current market has not completely reversed the low volatility pattern. In addition, due to the intensive issuance of local debt and the semi-annual MPA assessment of banks, the A-share market may still face some pressure on liquidity and capital in the middle and late June. At this stage, the lifting of the ban on some stocks and the pressure of shareholder reduction are also expected to have a certain impact on the market. In all respects, short-term A shares are still in a balanced pattern, which is difficult to rise and difficult to fall.

Chen Zhen, Vice President of Liuhe Investment, said that the momentum and probability of the rebound of macroeconomic autonomy at this stage are relatively insufficient, and the market may have to wait for opportunities for a systematic rise.

Structural opportunities are available

For the specific investment opportunities in the current A-share market, minority investment analysis believes that the net outflow of funds from the north in May has been completely reversed from the recent market flows. At the same time, Tuesdays surge in the market was mainly related to construction materials and liquor industry sectors, which reflects the expectations of improvement in infrastructure investment, but the current recovery in infrastructure investment is still difficult to hedge against other downward demand. Considering the static valuation of market weights and the long-term growth prospects of macro-economy, high-quality blue chips still have better structural investment opportunities.

On the other hand, in the context of the recent significant increase in the activity of individual stocks, including 5G, rare earth and other thematic investment opportunities are also generally focused on and favored by the private equity industry. According to a survey released this week by Private Platform Networks, as many as 90.90% of the respondents believe that with the promotion of 5G business, 5G concept will be a long-term hot spot, and the investment opportunities will run through all the time. Only 9.10% of the respondents believe that it is difficult to judge whether the current market on 5G concept stocks will continue or not. u3002

Several private equity insiders pointed out that under the background that the current market as a whole has not completely reversed the interval turbulence, market investment opportunities are expected to still be reflected in the high-quality stocks in the theme industry with high recognition of mainstream funds, as well as some value stocks with a long-term basis for good fundamentals.

Source: China Securities News. Adding Responsible Editor for Source Name Compatibility: Ren Hui_NBJ9607