Interruption of valuation of technology stocks

 Interruption of valuation of technology stocks

Style switching

On February 26, the growth enterprise market (GEM) experienced a decline of nearly 5% for 16 trading days; on February 27, though gem rebounded and slightly opened 0.73%, many stocks still showed a trend of continuous weakness.

In the view of many industry insiders, the decline of gem on that day was mainly due to the normal adjustment under its previous increase.

Tong Li, deputy general manager of Research Department of Huashang fund and the proposed fund manager of Huashang science and technology innovation fund, said that the adjustment of science and technology stocks is a normal phenomenon, and the subsequent divergence of science and technology stocks will be growing. I think its very normal. The differentiation of technology companies will become more and more big. Technology stocks have been a unique trend in the past period of time. Some adjustments in the middle are normal. There may be some callback pressure and momentum. The core is the trend of focusing on the industry. Tong Li said. There is a need for profit taking in the pre ambush buying funds, so the adjustment is expected, just happened this week. On February 27, the head of a private equity firm in Beijing said, there is also the overseas market has been falling, and the A-share market will be affected jointly and severally.

On February 3, the large-scale net purchase of northbound capital also became the main force of withdrawal. On February 26, the net outflow of northbound capital for the whole day was 6.727 billion yuan, the first time since August 7, 2019.

Analysts from a listed securities firm in Beijing also said, in recent days, the growth enterprise market has shrunk down from the daily line. This wave of technology stocks is showing a trend of insufficient upward momentum, and there was a certain degree of panic at the end of the day on the 26th.

At the same time of the decline of technology stocks, cyclical stocks have ushered in a certain degree of rebound. For example, on February 26, eight real estate and infrastructure stocks in China, including Zhongzhi, Tengda construction, Hefei urban construction and Shangshi development, bucked the trend, while the infrastructure, real estate and steel sectors generally saw gains.

According to the reporters understanding, the reversal of this style is related to the style adjustment of some public institutions, and the large-scale adjustment of science and technology shares also makes the phenomenon of fund managers holding science and technology shares loose.

A fund manager in Shanghai revealed that he chose to change his position in some technology stocks into undervalued blue chip stocks. No matter whether the style will change or not, there will be changes in the technology sector in the past two days, and the net value may have a callback, and there may be redemption pressure in the communication between the company and the channel.

On the one hand, it is to prevent gem callback from causing rapid decline, and to switch some styles for rhythm and speed adjustment. On the other hand, it is necessary to deal with the profit taking that may occur in the near future. The fund manager said.

A private investment manager in South China also said that the strong performance of the Shanghai stock index on the 26th coincided with the sharp fall of the growth enterprise market, which has never appeared since the launch of the market and is also a relatively obvious shift signal. At present, it is not ruled out that the technology stocks with positions will be switched to the undervalued blue chip represented by financial real estate, but there will not be too much worry at present. The growth enterprise market may be Will enter a period of sideways shocks, but also to see the next trend decision.

Confidence in the future

There are also fund managers who choose to stay put, believing that the overall trend toward good has not changed.

Xingshi investment believes that the current rebound of cyclical stocks is only a response to stable growth, while in the long run, growth stocks are still the main investment line.

According to Xingshi investment, the short-term rebound of cyclical stocks is more a response to the expected warming of resumption of work and the policy of counter cyclical adjustment to increase the steady growth of infrastructure. For cycle stock investment, traditional infrastructure is more of the role of supporting the bottom, and its space is limited. In the long run, new infrastructure is the important direction. In the past several important meetings, new infrastructure has been mentioned. The new infrastructure will bring more performance support to 5g, cloud computing, industrial Internet and other industrial chains.

The sentiment and activity of technology stocks still exist. After short-term adjustment, investors who did not participate in the early stage actually have a certain opportunity to get on the bus. In the medium and long term, there is still room for valuation repair in the A-share market. Of course, we should also pay attention to risks in the subject matter of individual overvalued and pure speculation concepts, said the investment researcher The short-term fluctuation will not affect the overall trend, and the big logic of science and technology growth plate has not been destroyed, which is still the main line of the stage. In addition, in terms of liquidity, since December last year, the liquidity is expected to improve, and the capital from northbound continues to flow into technology growth stocks. Monetary easing supports the valuation of growth stocks to improve. The acceleration of commercialization has led to the start of 5g industrial chain cycle in 2020, benefiting from the continuous easing of M & A and restructuring policies. It is expected that this years technology growth stocks will have a comparative performance advantage, with a dominant boom, said SAIC Morgan fund

In addition, there are also public institutions that believe that there may be a certain range of volatility in the future market.

The Fund said that the fundamental factor determining the market trend is the medium and long-term trend of the economy and the change of economic structure. For the Shanghai stock index, which mainly reflects the overall situation of the economy, the impact of the epidemic on the economy is objective, and the future market index is still an interval shock operation. Investors can play down the index, pay attention to the structure, and focus on the plate stocks with long-term performance.