Beijing, August 12th, Monday - A-share's three major indices experienced fluctuations and adjustments.

By the close, the Shanghai Composite Index fell by 0.14%, closing at 2,858.2 points; the Shenzhen Component Index fell by 0.24%, closing at 8,373.47 points; and the ChiNext Index fell by 0.2%, closing at 1,592.39 points.

The turnover of the Shanghai, Shenzhen, and Beijing markets fell below 500 billion yuan, reaching a new low since May 25, 2020.

Over 3,600 individual stocks declined in both markets.

In terms of sectors and themes, the pharmaceutical sector erupted, with COVID-19 special drugs and antigen testing leading the gains.

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The energy-saving and environmental protection sector strengthened, with the hydrogen energy and natural gas sectors moving up in the afternoon.

The real estate, education, commercial aerospace, and automobile sectors adjusted.

On the hot plate, pharmaceutical stocks collectively strengthened, with COVID-19 drug direction leading the gains, Guangsheng Hall, Xinhua Pharmaceutical, Da'an Gene, and Kehua Biology all hitting the daily limit up; traditional Chinese medicine stocks fluctuated and rose, with Xiangxue Pharmaceutical, Teyi Pharmaceutical, and Yiling Pharmaceutical all hitting the daily limit up.

Environmental protection stocks opened higher, with Qingyan Environment, Xue Di Long, Yutong Heavy Industry, and Shenwu Energy Saving all hitting the daily limit up.

Oil and gas stocks fluctuated and strengthened, with Zhunyou Shares hitting the daily limit up.

At the end of the day, nuclear pollution prevention and control concept stocks moved, with Jieqiang Equipment and Beihua Shares hitting the daily limit up.

On the downside, real estate stocks adjusted, with Shenzhen Property A and many other stocks falling more than 5%.

Jufeng Investment Consulting's institutional view: The market operated with fluctuations on Monday, with environmental protection equipment leading the gains.

Currently, A-shares are in a valuation lowland, with a high cost-performance ratio.

Major overseas economies may start an interest rate reduction cycle in the second half of the year, which will attract foreign capital to flow into the A-share market at an accelerated pace.

With the expectation of economic recovery, A-shares are expected to enter a medium to long-term bull market.

In terms of investment opportunities, sectors such as environmental protection equipment, consumer goods, pharmaceuticals, and semiconductors can be closely tracked.

Chen Guo from CITIC Construction Investment: The world has entered a "turbulent period," affecting the risk preference of the A-share market.

However, a comprehensive assessment shows that the U.S. economy is still far from a recession, and the reversal of the yen carry trade has a limited direct impact on A-shares.

Domestic demand data is still weak, and for most funds, it is necessary to confirm that the expansion of domestic demand policies has been significantly implemented and the economy has stabilized.

Investors need to be patient, waiting for the opportunity to attack, first guarding the "winning assets" mainly in stable dividend industries, and then gradually laying out the direction and growth industries benefiting from the expansion of domestic demand policies at a low point.

Key attention: electricity, telecom operators, state-owned banks, highways, military industry, pharmaceuticals, etc.

Zhejiang Securities: A-shares have entered the bottoming period of the medium line, but the formation of the bottom will not be achieved overnight and may last for a period of time; before the real medium line trend starts, the market is likely to show a range of fluctuations with "support at the bottom and pressure at the top."

In terms of allocation, considering that the main broad-based index has very limited downside space, there is no need to worry about the medium line position, and it can still maintain the current position, and increase the allocation when the index challenges the lower edge of the range; but for short line positions, it is recommended to operate from the perspective of range fluctuations, quickly enter and exit to make the difference.

Considering that a considerable number of individual stocks have been fully adjusted, after entering the bottoming period, stocks can be selected based on the compound conditions of "full decline in the previous period + recent stable trend + improvement in fundamentals," and appropriately "light index, heavy individual stocks."

In terms of news, the market rumors that Jiangsu Rural Commercial Banks have been notified to prohibit government bond transactions, and responses from Suzhou Rural Commercial Bank and Jiangyin Bank.

According to the 21st Century Business Herald, today, government bond futures fell across the board, as of press time, the main contract of the 30-year government bond futures fell nearly 1%, and the main contract of the 10-year government bond futures fell 0.53%.

An article published on the public account of Xingye Research, a member institution of Xingye Bank, said that the market rumors that the Jiangsu Provincial Federation notified Jiangsu Rural Commercial Banks to prohibit government bond transactions, and some securities proprietary and asset management have also been guided.

In response, reporters contacted the investor relations departments of Suzhou Rural Commercial Bank and Jiangyin Bank as investors.

A person related to Suzhou Rural Commercial Bank told the reporter, "I have not received the news here."

"We have not received this instruction for the time being."

A person related to Jiangyin Bank also said, "Let's confirm it with the peer department later."

How is the current government bond trading situation of the two banks?

The person above from Suzhou Rural Commercial Bank said that it is still cooperating with the investigation of the (Interbank Market Trading Association of China).

The person above from Jiangyin Bank said that there is no impact at present and it is normal.

The personal pension product area continues to expand, and 21 public funds have entered.

According to China Securities News, as of August 12th, personal pension funds from 21 public funds including Guangfa Fund, Yinhua Fund, Huaxia Fund, Huitianfu Fund, China Merchants Fund, Xingye Global Fund, Fuguo Fund, Zhongou Fund, Jia Shi Fund, Nanfang Fund, Huabao Fund, Yifangda Fund, Wanjia Fund, Tianhong Fund, Hua'an Fund, Bosera Fund, Guotou Ruiyin Fund, ICBC Credit Suisse Fund, Penghua Fund, Taikang Fund, and Dongfanghong Asset Management have officially entered the "Personal Pension Product Purchase Area" of the electronic social security card.

Goldman Sachs said that hedge funds sold Japanese stocks at the fastest pace in five years last week.

Goldman Sachs data shows that as the Japanese stock market fell last week, hedge funds sold Japanese stocks at the fastest pace in more than five years.

The benchmark index of the Japanese stock market set the largest single-day decline since "Black Monday" in 1987 last week.

Goldman Sachs analysts wrote in a report on August 9th that in the past five trading days, there were four trading days of net sales in the region.

Industries such as industrial, financial, and healthcare were the most net sold, while real estate, information technology, and non-essential consumer goods were the most net purchased.