Since September, the Shanghai and Shenzhen stock markets have been in full swing for six trading days. Behind the hot market is a large inflow of funds. Yesterday, Beisheng purchased 2.785 billion yuan, the eighth consecutive day of net purchases. On only six trading days in September, Beisheng purchased 30.794 billion yuan, which ranked among the top 10 in the history of net purchases in a single month, more than the total of 13.206 billion yuan in August and 12.225 billion yuan in July.
Historically, only in January and February this year, the net monthly purchases of northbound funds exceeded 60 billion yuan, 60.688 billion yuan and 60.392 billion yuan, respectively, while in September alone, the net purchases in the first six trading days exceeded 30 billion yuan, and on September 23, Fushi Russells promotion of A-share inclusion factor and S&P Dow Jonesinclusion in the A-share list came into effect. According to the current trend, the probability of net monthly purchases of funds going north in September will set a new historical record.
Since September, the balance of financing has also increased continuously, with a significant increase of 18.299 billion yuan, more than the net purchase of 15.994 billion yuan in August.
Technology stocks led the rise
On the market yesterday, technology stocks rose sharply. Domestic software, semiconductors, chips, 5G and other sectors in the subdivision industry have risen in an all-round way. Wind statistics show that since September, Shenwan Electronics, Computer, Communications, Pharmaceutical and Biological Industries, which have the highest content of science and technology, have taken the top four net purchases of financing, with net purchases of 4.228 billion yuan, 4.153 billion yuan, 2.428 billion yuan and 2.286 billion yuan, respectively. The total net purchases of the four major science and technology industries amounted to 13.095 billion yuan, accounting for 71.56% of the net purchases of financing since September.
Since September, the top four net purchases of financing have been all technology stocks. Wentai Technologies bought 617 million yuan, ZTE 567 million yuan, ZTE Shuguang 460 million yuan and Great Wall of China 427 million yuan respectively. Due to the influx of funds, Wentai Technologies has risen 59.16% in six trading days since September, and its share price has continuously reached a record high. ZTE rose 27.87% in September after trading yesterday. China Science and Technology Dawn rose 13.79% and China Great Wall rose 24.20%, both of which exceeded the Shanghai Stock Exchange Indexs rise over the same period.
Domestic software is facing uncertainties in the external environment, which highlights the importance of autonomy and controllability, and on the contrary, it promotes the steady and sound development of Chinas software industry. According to the Ministry of Industry and Information Technology, in the first half of 2019, Chinas software industry completed software business income of 3283.6 billion yuan, an increase of 15% over the same period last year, an increase of 0.6 percentage points over the same period last year; the total profit of the whole industry reached 408.8 billion yuan, an increase of 9.9% over the same period last year; and the software industry exported 22.9 billion dollars, an increase of 2.6% over the same period last year.
Semiconductor index rose 4.69% yesterday, reaching a new high in the year. In fact, since the official listing of Kechuang board on July 22, the semiconductor board began to refuse to fall. The lowest point of the day was 1119, which was the stage lowest point. It never fell again. Since July 22, the semiconductor board has risen 23.82%.
Defense Military Industry Rises for 10 Days
Catalyzed by the National Day parade event, the Defense Military Industrial Plate Index jumped high yesterday, which is the 10th consecutive trading day of the index, the longest-lasting recent A-share rise. The cumulative increase on the 10th day was 11.36%. Over the same period, the Shanghai Stock Exchange Index rose by only 5.63%, and the National Defense Military Industry Index led by nearly 6 percentage points. Eston, Philippines, True Vision, Dongtu Technologies and other 8 shares rose and fell.
With the national defense construction entering the peak period of equipment procurement, the prosperity of the national defense industry continues to rise, and the advantages of sustained and stable growth in the current complex international environment will be further highlighted.
According to the semi-annual report of 2019, the total revenue of the defense industry sector in the first half of the year was 139.77 billion yuan, an increase of 8.7% over the previous year, and the net profit was 7.54 billion yuan, an increase of 23.1% over the previous year. Net profit growth rate is much higher than revenue, indicating that the industry continues to rise. And the gross national defense industry gross margin rose 0.1 percentage point to 17.4% year-on-year, ending seven consecutive quarters of decline. The net interest rate was 5.4%, a new high since 2016, reflecting the initial results of cost reduction and efficiency enhancement of military enterprises.
In sub-sectors, the aviation sector has grown rapidly. Recently, the Chinese Air Force released a video of seven J-20 stealth fighters flying simultaneously. In addition, Air China, China Eastern Airlines and China Southern Airlines recently announced that each company will purchase 35 ARJ21 aircraft with a total price of nearly 28.3 billion yuan. ARJ21 had 528 orders from 24 customers before the three airlines placed orders.
The semi-annual report also confirms the rapid growth of the aviation sector. In the first half of the year, the airline sector realized 70.857 billion yuan in revenue, an increase of 19.67% and a net profit of 4.09 billion yuan, a substantial increase of 49.05%. Of the 26 companies in the aviation sector, only Aviation Technologies and Hongdu Airlines suffered losses, but the loss margin was reduced year on year.
Sixteen companies have achieved performance growth, especially the core host plant. The annual net profit of China Airlines Shenyang Airlines, China Direct Shares and China Airlines increased 331.68%, 35.50% and 38.05% respectively. Upstream ancillary enterprises, AVIC Photoelectric and AVIC Electrical Survey also increased significantly, with net profit increased by 23.13% and 36.80% respectively in the first half of the year. As for civil service enterprises, MorningDawn Airlines has achieved remarkable results, with net profit increasing by 240.66% in the first half compared with the same period last year. Daily hair refiner and Haite Hi-tech also increased rapidly, with net profit increasing by 80.85% and 45.18% respectively. Wind statistics show that since September, the balance of defense industry financing has surged by 1.678 billion yuan, purchasing more than 5 industries for financiers. Three of the top five stocks in the net purchases of financing only have the concept of military industry. They are CAAC Shen Feis net purchases of 340 million yuan, as well as the dawn of China Science and Technology and the Great Wall of China mentioned by the aforementioned technology stocks. Source: Responsible Editor of Securities Times: Yang Bin_NF4368
Wind statistics show that since September, the balance of defense industry financing has surged by 1.678 billion yuan, purchasing more than 5 industries for financiers. Three of the top five stocks in the net purchases of financing only have the concept of military industry. They are CAAC Shen Feis net purchases of 340 million yuan, as well as the dawn of China Science and Technology and the Great Wall of China mentioned by the aforementioned technology stocks.