The A-share market rose on Tuesday, with all major stock indexes up more than 1 per cent. The Shanghai Composite Index successfully regained the 3,000-point integer mark, and the trading volume quickly magnified to more than 300 billion yuan, reaching a three-month high. The trend of the gem index is even stronger, successfully breaking through the year's new high, reaching a 19-month high.
Recently, the easing of trade frictions between China and the United States and the continuous improvement of macroeconomic data have attracted the influx of capital from all sides. Northbound Capital made a net purchase of more than 8.8 billion yuan on Tuesday, the 24th consecutive day of net buying, with a cumulative net purchase of 329.3 billion yuan for the whole year. The scale of financing and financing has also climbed to 990.8 billion yuan, close to the trillion threshold. The position of public offering funds began to increase gradually in July and reached 78.44% by the end of November, higher than the historical average.
Determination of high growth of brokerage stocks for the whole year
Yesterday's market, the big financial plate rose strongly, banks, brokerages, insurance all three major plates floating red. The financial sector is also a hot spot in the pursuit of funds. Since December, funds going northward have bought a total of 8.546 billion yuan in large financial sectors, accounting for 6 of the 21 heavy stocks with positions of more than 10 billion yuan. Financiers have also continuously increased their positions in financial stocks since December, with a total net purchase of more than 2.3 billion yuan, making it the third largest industry in the same period. Financial stocks accounted for 5 of the top 10 stocks in the financing balance.
A few days ago, the meeting of the political Bureau of the CPC Central Committee and the meeting of the Securities Regulatory Commission have successively defined the direction of capital market reform in 2020, and the future reform dividend will continue to be released. In the context of financial supply-side reform, expanding direct financing and equity financing will expand and strengthen the securities industry.
Affected by the continued release of favorable policies in the industry, a number of data show that part of the business of securities firms is showing strong growth. The size of IPO issuance increased by 50% in November compared with the same period last year, and the IPO market will also erupt after the refinancing rules are revised. With the acceleration of capital management and public offering, the revenue side of listed securities firms has taken the lead in becoming regular members of the industry in the first three quarters. Under the background of the expansion of the two financing targets, the scale of the two financing is once again close to the trillion mark.
Data statistics show that from January to November, listed securities firms accumulated operating income of 215.481 billion yuan and net profit of 80.091 billion yuan, up 35.04% and 48.95% respectively over the same period last year. The cumulative net profit of head brokerages CITIC, Guotai Junan, Haitong and Huatai increased by 34.55%, 41.63%, 31.10% and 5.89% respectively compared with the same period last year. The high performance growth of the brokerage plate for the whole year is almost certain.
Following the LPR interest rate cut in mid-November, the brokerage plate outperformed the market for four consecutive weeks. In the last three trading days, the trading volume of the brokerage sector soared from about 10 billion yuan to more than 40 billion yuan, and yesterday it was further enlarged to more than 63.5 billion yuan. At one point, the sector index rose nearly 6 per cent. Nanjing Securities and Hua'an Securities rose by the daily limit, while Southwest Securities and Central Plains Securities were among the top gainers.
Since December, northbound funds have bought a total of 2.546 billion yuan of brokerage shares, of which CITIC bought the most, reaching 697 million yuan, increasing his position by more than 30 million shares. Huatai, Guotai Junan, Haitong and other six brokerage stocks were also bought more than 100 million yuan by northbound funds in the same period.
Pay attention to the risk of lifting the ban on restricted shares
Bank stocks are the worst-hit areas, with a clean rate of 75%, and the overall price-to-book ratio of the industry is about 0.85 times. After rising in recent trading days, the share prices of Zhangjiagang Bank and Postal Savings Bank of China have successfully returned to their net assets per share, and the Bank of Nanjing is only 1 cent short of net assets per share. As of Tuesday, Huaxia Bank, which had the lowest price-to-book ratio, had only 0.58 times. China Minsheng Banking Corp, Bank of Communications, Bank of Beijing and Bank of China Ltd. all have a price-to-book ratio of no more than 0.7 times.
The banking sector rose collectively yesterday, with the sector index up 1.18 per cent, with trading volume nearly double that of the previous trading day. Among them, the performance of the second New Town Agricultural Bank is the most dazzling, with Suzhou Bank and Zijin Bank rising by the daily limit, and the recently listed Postal Savings Bank of China also rose by the daily limit.
Statistics show that revenue of listed banks in the third quarter of 2019 increased by 11.9% compared with the same period last year, compared with 8.3% growth in 2018, the growth rate rebounded sharply, and net profit increased by 7.1% year-on-year, an increase of 0.4 percentage points over the first half of 2019.
The third quarterly report of the fund shows that the allocation proportion of the partial stock fund bank plate is 5.38%, which is 0.05 percentage points higher than that in the second quarter. Since December, northbound funds have bought a total of 3.172 billion yuan in bank shares, while China Merchants Bank, Industrial Bank, China Minsheng Banking Corp, China Construction Bank Corporation and Jiangsu Bank have all bought more than 300 million yuan.
The insurance sector also increased its volume yesterday. The increase in the holdings of insurance stocks by northbound funds was mainly concentrated in Ping An Insurance, with a net purchase of 2.484 billion yuan since December. China Pacific Insurance and New China Life Insurance also received a net purchase of 260 million yuan and 214 million yuan respectively in the same period.
When financial stocks soar, investors should also note that late December and January are the peak for the lifting of restricted stocks, which coincides with the end of the year and the Spring Festival, when the capital side is the most tight. Before the lifting of the ban on a large number of restricted shares of Tianfeng Securities, the stock price fell by the limit in a row, and the lifting of the ban on restricted shares of Zijin Bank also led to a flash collapse of the stock price. According to statistics, in the past month, China Galaxy, Central Plains Securities, Qingdao Bank, Anxin Trust and other 10 financial stocks will lift the ban on the listing and circulation of restricted shares.