The three major A-share indices collectively opened higher and lower. The index continued to consolidate at a low level in the afternoon. Individual stocks in the two markets were more popular and less green. The turnover exceeded 1.5 trillion yuan, exceeding 1 trillion yuan for 33 consecutive trading days;
On the sector side, stimulated by the news, concept stocks on the Beijing Stock Exchange, such as the New Third Board selected and venture capital, surged, and wind power stocks continued to rise; high-ranking stocks such as military, coal, chemicals, non-ferrous metals, lithium batteries, and photovoltaics plummeted again; resource stocks such as lithium ore, rare earths, titanium dioxide, and small metals fell to a halt in batches;
At the close, the Shanghai Index fell 0.43% to close at 3,581 points; the Shenzhen Index fell 0.68% to close at 142179 points; and the GEM Index fell 1.17% to close at 3102 points. Northbound Capital made net purchases of 7.068 billion yuan throughout the day, 10 consecutive days of net purchases.
The Beijing Stock Exchange concept is fully exploding
Yesterday evening, General Secretary Xi Jinping said that he will continue to support the innovation and development of small and medium-sized enterprises, deepen the reform of the New Third Board, establish the Beijing Stock Exchange, and create a main position to serve innovative small and medium-sized enterprises.
Subsequently, the head of the Securities Regulatory Commission stated that deepening the reform of the New Third Board and establishing the Beijing Stock Exchange is an important measure to implement the country's innovation-driven development strategy and continuously cultivate new momentum for development. It is also an important part of deepening financial supply-side structural reforms and improving the multi-level capital market system.
Influenced by this news, the Beijing Stock Exchange concept ushered in an explosive rise today. The selection layer, innovation layer, and basic layer of the New Third Board went berserk.
By the close, the selected concept sector on the third board had surged more than 5% overall. In terms of individual stocks, many stocks such as Dongfang Electronics, Beijing Investment Development, and Chuangyuan Technology had risen and stopped. Dinghan Technology had risen 20 cm, while Dinghan Technology had risen 20 cm, while Dabanong, Huabang Health, and Placo followed suit.
The performance of the innovation layer was even stronger. Gangbao shares once rose 100%, Flying Enterprise Connect and Huaxi Yitong rose more than 90%, and Kangyuan shares such as Avon Low Carbon rose more than 50%, more than 10 times the volume of more than 70 shares.
There were as many as 17 individual stocks with a 100% increase in the base layer, including Dahui Biotech, Xunmei Energy Saving, the delisting of Yongping, the delisting of Yuxin McD Refrigeration, Beike Everbright, Ruixing Pharmaceutical, Zhongan, and Jinke Environmental. There were also 36 individual stocks that rose between 50% and 100%.
Furthermore, due to favorable policies, the opening of the brokerage and venture capital sectors changed in early trading. The brokerage sector index reached its highest point in recent years, but it declined all the way down thereafter. First Venture, Shen Wan Hongyuan, performed excellently, closing close to rising and stopping. In the venture capital sector, many individual stocks rose and stopped, and the dark horse of entrepreneurship rose and stopped 20% at one point.
Furthermore, the establishment of the Beijing Stock Exchange also had a positive effect on IT concept stocks of A-share securities. Hang Seng Electronics and Vertex Software rose and stopped in early trading, and Gold Securities shares also hit a rise and stop for a while. When wins, wins, and wealth trends all rose sharply during the intraday period.
Guotai Junan said that the main driving force of securities IT performance is system upgrades caused by changes in the securities industry. The launch of the Beijing Stock Exchange this time will bring about an increase in performance from two aspects. The first is a change in trading rules, and the second is an increase in trading volume that brings demand for capacity expansion. It is difficult for brokerage firms to undertake the development of system updates alone in a short period of time, which benefits existing securities IT vendors.
What was the subsequent impact of the establishment of the Beijing Stock Exchange
Institutions have expressed their views on the establishment of the Beijing Stock Exchange. The following is a summary of institutional views:
CITIC Construction Investment: The establishment of the Beijing Stock Exchange helps small and medium-sized enterprises directly finance and broadens the space for brokerage firms to expand their business
The number of new third-board companies that each brokerage firm continues to supervise/market. Brokers with a large number of New Third Board reserve projects can obviously benefit the most from the establishment of the Beijing Stock Exchange.
Furthermore, monetary relaxation+wealth management+performance growth will be the main catalyst for the brokerage sector. Catalyzed by monetary policy easing and capital market reform dividends, the brokerage stock market may not be limited to just a few leading wealth management institutions. Investors are advised, on the one hand, to pay attention to the short-term trading opportunities brought about by the establishment of the Beijing Stock Exchange, and on the other hand, to pay attention to other brokerage firms with good performance and low valuations, which are wealth management agencies or venture capital institutions, and are ambushed on the left, waiting for good news.
CICC: China's capital market ushered in a new pattern, focusing on three revenue areas including brokerage firms
Research by CICC points out that the establishment of the Beijing Stock Exchange means that the reform of the New Third Board has entered a new stage in history. Recently, it has focused on three beneficiary areas.
1) The establishment of the Beijing Stock Exchange means that the capital market has ushered in a new development pattern. We believe that changes at the level of financing and trading brought about by the upgrading of the selection layer will benefit the development of relevant financial institutions, focusing on brokerage firms and venture capital-related sectors;
2) Companies currently listed in the select tier and companies that may upgrade from the basic layer and innovation layer to the Beijing Stock Exchange in the future are expected to improve markedly at the trading and financing levels, and will receive high attention from the market;
3) The Beijing Stock Exchange is positioned to help the development of small and medium-sized enterprises, especially those specialized in innovative enterprises. Related enterprises may receive attention from the capital market.
CICC pointed out that after the establishment of the Beijing Stock Exchange is proposed, various related basic systems may be arranged and improved one after another in the future, such as arrangements for issuance, trading, supervision, etc. We will also continue to closely monitor related developments.
Haitong Securities: Broker Venture Capital may take the lead
Haitong Securities said that the multi-level capital market is an important aspect of supporting China's economic transformation and economic development. The establishment of the Beijing Stock Exchange will not only benefit the brokerage sector, but listed companies with the main board venture capital concept and select tier companies on the new third board will also benefit from this. Investors can focus on individual stocks in related sectors in the near future. It is recommended to focus on brokerage firms, venture capital concepts, and select tier companies in the near future, which is likely to be on the cusp of capital chasing.
Institutional future market views
Regarding the current market trend, Galaxy Securities believes that current liquidity is still abundant, but the upward momentum in the market is insufficient, and there is a high probability that the market will rotate in a structured market style in the future. In the short term, it is recommended to adopt a defensive strategy, balance the allocation, and focus on high-quality individual stocks with low valuations and strong performance fundamentals.
Long-term recommendations focus on: Main line 1. Independent and self-improvement in technology, specialization in high-end manufacturing and technology such as special and new small and medium-sized enterprises. Continuing to be strategically optimistic about new energy vehicles, photovoltaics, semiconductors, military industries and other industries, it is recommended to buy when they fall. Main line 2: Resource-cycle industries with improved supply and demand patterns. Resource-cycle industries with improved supply and demand patterns, such as phosphoric chemicals, coking coal, non-ferrous metals, steel, etc., still have upward momentum.