Chen Li, chief economist of Soochow securities, believes that the improvement of the profit-making effect of a shares will provide rich returns for investors. In particular, the increase in the number of new economy enterprises such as mobile Internet, big data and cloud computing has improved the pattern of A-share industry and attracted more new investors to enter the market.
According to wind information statistics, in 2010, the market value of financial, industrial, energy and materials sectors ranked first. Since this year, the market value of big finance (banking, non bank finance and real estate) has gradually decreased to 20%. The proportion of information technology has exceeded that of traditional industry, and the market value of daily consumption and medical care has exceeded that of materials, The proportion of energy has dropped to the third from the bottom, which reflects that the proportion of enterprises related to the new economy in the A-share market continues to expand and is sought after by various funds.
The implementation of the reform and opening-up measures in the capital market has effectively stimulated the market vitality and enhanced the confidence of investors. Deng Shubin, chief economist of Zhongyuan securities, believes that since this year, Chinas capital market reform and opening up has overcome many unfavorable factors, and has launched a package of reform measures in areas such as improving the quality of listed companies, protecting the legitimate rights and interests of investors, and improving the multi-level market system, so as to create favorable conditions for enhancing the vitality and toughness of the capital market.
The driving effect of the continuous inflow of funds from overseas institutions enhances the recognition of ordinary investors for the investment value of a shares. Statistics of Zhongyuan securities show that since this year, driven by the acceleration of capital market opening-up, poor valuation of A-shares and the first recovery of economy after the epidemic, overseas investors represented by Mingsheng index and FTSE Russell have continued to enter A-shares through the interconnection mechanism. The proportion of northward capital in the average monthly turnover of A-shares has stood at 10% since May 2020, reaching a maximum of 11.54%.
The increase of new shareholders also shows that the concept of family asset allocation is quietly changing. In the view of Xia Chun, chief economist of Noah holdings, for a long time, Chinas resident sector savings rate is too high, asset allocation is too concentrated in real estate, such a portfolio is difficult to support Chinas residents property income growth, pension security enhancement and intergenerational wealth inheritance and other needs.
With the enhancement of residents awareness of investment in equity, the recognition of valuing real estate rather than stocks has turned in the past. In addition, the A-share market is actively traded. Many residents are choosing stocks, funds, and trusts to participate in the securities market investment. This not only shows that individual investors have increased trust in asset management institutions and are willing to share equity market income through professional institutions, but also reflects the acceleration of A-share institutionalization and the maturity of market and residents financial awareness.
Ma Tao believes that the securities market provides a channel for optimizing the allocation of residents assets. The improvement of the market environment has significantly enhanced the profit-making effect of high-quality securities, which makes the inferior securities eliminated naturally. The residents savings can maintain and increase the value by continuously allocating them to the efficient direction. The securities market has also played a role in price discovery, giving higher valuations to key industries and promoting high-quality resources to shift to key areas. With the smooth progress of the registration system, the related enterprises can obtain direct financing support in time and play a greater role, which constitutes a good supplement to the indirect financing system.