Why are a shares still in shock in November when PMI exceeded expectations? Thats what the Fund says

category:Finance
 Why are a shares still in shock in November when PMI exceeded expectations? Thats what the Fund says


In response, public fund analysis said that the main reason why PMI exceeded expectations in November was that PMI in October was significantly lower than expected, and the rebound of global PMI was also an important reason. For the aftermarket, concussion is still the theme of a shares.

According to the analysis of Morgan Stanley Huaxin Fund, although the current economic boom is still not high, we still need to pay attention to the positive signals of economic stage stabilization sent by PMI data, because the global manufacturing PMI has continued to recover, and the low inventory supports the economy in terms of domestic demand; it is expected that the PMI data will boost the manufacturing industry and cycle related sectors at the bottom of the valuation.

Wanjia Fund pointed out that the improvement of PMI in November was significantly higher than the market expectation. The main reason is that PMI in October was seriously lower than the expectation. In two months, PMI picked up slightly. The rebound of global PMI, warm winter and the superposition of multiple festivals are also important reasons.

However, for the future economic outlook, Wanjia fund is cautious, which believes that the economic data has not yet got rid of the repeated monthly performance and downward volatility. In the process of economic downturn, it is possible to improve data in a certain month or several months. In order to stabilize the economy for more than half a year, three conditions need to be met: first, China and the United States have reached an important agreement to eliminate most of the tariff impact; second, the PPI has rebounded significantly to drive the replenishment of the inventory; third, the steady growth has made significant efforts and the social finance has improved significantly.

Specific to the follow-up trend of A-share, Boshi fund Wei Fengchun said that the policy face A-share repression, the market remained volatile in the short term.

The macro combination of CPI upside and economic downside still restricts the policy space, and the uncertainty of external situation disturbance increases, which suppresses a shares. Although MSCI achieved the highest weekly inflow last week, it will also tend to be stable in the short term after one-off inflow. Market sentiment is low. Trading volume of a shares last week hit a new low after the Spring Festival. The market has limited space to move up and down, and it is expected to maintain a volatile market.

Tianhong fund also said that although from a technical point of view, last week there were bad signals such as the markets daily line fell four times, the next years line, or investors turned pessimistic about the future market. But in the next week, the market may fluctuate around 2900. Deppon Fund believes that the market adjustment may continue for some time, but the space is limited. In the long run, a shares still have a high investment value, and adjustment is the best time for layout. Morgan Stanley Huaxin Fund also believes that the probability of the market to continue a sharp correction is small. Judging the short-term market fluctuation is the result of the year-end capital game, maintaining a cautious and optimistic attitude towards the market, A-share will go out of a relatively stable trend in the medium and long term. Source: First Financial Editor: Wang Honggui, nf7326

Tianhong fund also said that although from a technical point of view, last week there were bad signals such as the markets daily line fell four times, the next years line, or investors turned pessimistic about the future market. But in the next week, the market may fluctuate around 2900.

Deppon Fund believes that the market adjustment may continue for some time, but the space is limited. In the long run, a shares still have a high investment value, and adjustment is the best time for layout.

Morgan Stanley Huaxin Fund also believes that the probability of the market to continue a sharp correction is small. Judging the short-term market fluctuation is the result of the year-end capital game, maintaining a cautious and optimistic attitude towards the market, A-share will go out of a relatively stable trend in the medium and long term.