Shanghai Stock Index Soared 5.71% Points To Break 3300 Points A Shares "Bull Market" Came?

Under the bull market atmosphere, the whole market is excited.

In July 6th, the market rose sharply. As of the close of the day, the Shanghai composite index was 3332.88 points, up 5.71%, the largest daily gain in 5 years; the Shenzhen stock index reported 12941.72 points, up 4.09%, and the gem index reported 2529.49 points, up 2.72%.

As of July 6th, the Shanghai Composite Index has been rising for five consecutive trading days since June 30th. Since July, the Shanghai Composite Index has risen by more than 11%.

In July 6th, the turnover of the two cities also exceeded 1 trillion and 500 billion, a 5 year high.

The rapid rise of the market has led to unprecedented heated discussions on the topic of "bull market". In July 6th, many of the business people showed great enthusiasm for the bull market in an interview with the twenty-first Century business reporter.

"Today's heavy volume has broken through the big line to break the 3288 high point of April 2019, the high point has risen, and the Shanghai Composite Index has risen by 30% from the lowest point 2440. It can be said that today's landmark is a sign of the formal establishment of the bull market." In July 6th, Kang Shuiyue, chairman of Danyang investment, told the business reporter in twenty-first Century.

Is the bull market coming?

Since the early July 6th, the enthusiasm of the market has been almost overflowing.

Not only is the broker trading software appearing Catton or even downtime, even the new fund on sale that day was also "rob" by investors and had to announce the early closing of the offer.

On the morning of July 6th, the huitianfu Fund announced that the mixed value securities investment fund of huitianfu, which was launched on the same day, was closed early. Subsequently, at noon, the huitianfu fund also called active subscription. In order to control the reasonable scale of the fund, the agencies were asked to stop subscribing on the same day at 13.

Enthusiasm has pushed the market further higher. In July 6th, all 28 industries in the first half of the year ended up rising, with banking and non silver finance leading all sectors.

Specific to the stocks, Bank of Zhengzhou bank, Qingdao bank, Zhangjiagang line and more than 20 stocks were trading, even the lowest Bank of the day, closed up 5.98% in July 6th, or more than the Shanghai Composite Index rose.

In addition, the brokerage sector continued the trend of the previous few days. The entire non banking financial sector rose to 8.95% in July 6th, including a number of brokerages including the Pacific, Orient Securities, and Guoxin Securities.

"Today, the whole market is showing signs of inflation, including financial and cycle leadership." In July 6th, the Boshi fund's Macro Strategy Department said, "the domestic epidemic is controlled, the economy has gradually returned to normal, the monetary environment is better, the inflation is controllable, and the external disturbances are relatively few in the near future, which is the background of the current market change. Earnings recovery is the basis for repair of the undervalued sector such as the current cycle. There is still room for the repair. The continued rise of the market has also brought some money making effect, and the market transaction heat tends to rise and has shifted to the heavyweight market in the near future, which is more normal when valuations are repaired.

Harvest Fund also said that the market risk preference, undervalued inflation, loose liquidity, and gradually improve the economy and other factors are the core reasons for the rapid rise of the market in July 6th.

"Today, the market is rising with volume, announcing the opening of the bull market. From a technical point of view, from the low point of the year to today's closing rate of increase has exceeded 20%, it can be called a technical bull market. From another point of view, today's turnover reached a new high of 5 years, closing at the same time, breaking through the 3288 points in April 2019, forming a technical form of breaking through the bottom area. In July 6th, Zhang Zihua, chairman of Yun Yi asset, told the business reporter in twenty-first Century.

"Undervalued" inflation?

From the perspective of market feedback, "undervalued inflation" has become a trend in the recent market.

"The serious differentiation between small and medium-sized growth and blue chip valuation is the basis for this undervaluation to rise." Harvest Fund Research believes that "at the same time, the market risk preferences increase, incremental capital access is the main driving factor for the rapid rise of the market. For example, since July, the volume of market transactions has increased significantly, and the inflow of capital to the North has also increased significantly. In addition, with the increase of blue chips and the peak of the disclosure of the report, the verification of the fundamentals will lead to a constraint on the cycle and blue chips, while the growth boom is expected to continue.

In the direction of growth potential, the investment director of cashmere fund development investment group GUI Kai believes that the opportunities for future growth imagination are mainly concentrated on four directions: big health, big consumption, technology and advanced manufacturing.

However, Kang Shui Yue said, "this market can be called universal inflation, and it can not be called an undervalued inflation. Because the growth of technology stocks is also very gratifying, and high growth companies are usually not too cheap.

Specifically, in view of the current market configuration, Kang Shui Yue pointed out that "with the rise of the valuation level, we will gradually increase the allocation of the undervalued sector when we can not find suitable growth technology stocks. Before that, the growth technology stocks with larger positions have been allocated, and they also enjoy the benefits brought by the current round of uplink. They will pay close attention to the performance of the financial sector and the cycle plate in the near future, and gradually increase the allocation of these two industries.

"At present, the main positions are consumer and technology. The trend of consumption in the first half of the year is very strong. In the second half of the year, it may be restrained by earlier growth. However, the leading technology stocks with performance growth will still be popular in the second half of the year, and the reform of the registration system and trading system of gem will also enhance the investment sentiment of the gem." Zhang Zihua told the twenty-first Century economic news reporter.

It is worth noting that although the market sentiment is constantly rising, it is still a risk point to continue to maintain.

"It should be noted that in the current macro and financial environment, it is not appropriate to take the rise of market heat as a key reason for further market growth." Bo Shi macro strategy department believes.

"In the short term, whether the market volume can continue to volume or continue to remain at a higher level is a major concern for investors. At the same time, the market has been slightly overexcited. Whether there will be a proper cooling down in the latter stage of regulation will also attract some attention. The deepening of the reform of the financial supply side and the gradual switch from indirect financing to direct financing is undoubtedly a major policy direction that is clear and popular. But in this process, we should curb excessive irrational investment behavior, avoid abnormal fluctuations in the stock market in the past 2014-2016 years and sequelae, and ensure that the right direction is not subject to greater interference, which should also be the focus of attention. Yang Gang, chief economist of Golden Eagle Fund and general manager of research department, pointed out.