A-share follow-up? It's not that simple

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Today, the three major A-share indexes collectively opened low and walked low, laying a “sad” tone for the downturn throughout the day. The market panic was obvious, and the daily turnover of the two cities was 978 billion yuan. What is really surprising is that the decline narrowed slightly in the late trading, and some sectors rose against the market.

Affected by the situation in Russia and Ukraine, the external stock market fluctuated. As of the press time, Russia’s RST fell by more than 10%. On February 22, the performance of a shares was sluggish all day and rebounded slightly in the late trading.

Analysts told the international finance news that the market chain reaction caused by the tension between Russia and Ukraine is gradually reflected. At present, it is more likely to be reflected in the venting of investment sentiment, and a shares and Hong Kong shares will also be affected by factors such as repeated outbreaks and the expected warming of interest rate hike by the Federal Reserve. With the downward trend, the market is easier to amplify negative factors. At present, the market investment sentiment and confidence are fragile, the risk aversion is dominant, and the risk averse assets may be more easily sought after by the market funds.

Three major indexes open low and go low

Affected by the shock and decline of peripheral markets, a shares performed poorly.

Today, the three major A-share indexes collectively opened low and walked low, which laid a depressed tone for the downturn throughout the day. The market panic was obvious, and the daily turnover of the two cities was 978 billion yuan. Fortunately, the decline narrowed slightly in late trading. Finally, the Shanghai index fell 0.96% to 3457.15 points, the Shenzhen composite index fell 1.29% to 13297.11 points, and the gem index fell 1.38% to 2765.91 points. A total of 3698 stocks fell in Shanghai and Shenzhen, with 10 stocks falling by the limit; 886 stocks rose and 62 stocks rose by the daily limit.

31 Shenwan level industries are “a little red in the 10000 green clusters”, and consumer stocks have become the main force of “delaying”, but fortunately, cyclical stocks have been supported.

Nonferrous metals rose against the market all day, and Ganfeng lithium and other stocks rose strongly; Petroleum, petrochemical, coal and chemical industry “awesome” from green to red. The media, food and beverage, household appliances and other sectors fell by more than 2%. Guizhou Maotai, the “first brother of Shanghai stock market”, fell 3.68% to 1807.87 yuan / share. Wuliangye and Luzhou Laojiao both fell by nearly 3% today and more than 10% since the beginning of the year. The power equipment sector with a large return during the year was “calm and slightly down” today, and individual stocks rose and fell.

Let’s take a look at the concepts of Ning portfolio and Mao index. The declines of them are 0.59% and 2.01% respectively, and the year to date declines are 17.26% and 11.67% respectively. Compared with the previous sharp decline, the overall performance of Nanjing composite plate is relatively calm today, mainly due to the rise of electronic components and semiconductor stocks such as star semiconductors and Zhongwei company, the decline of robot stocks such as stone technology, the decline of automobile and medical stocks, and the decline of individual stocks such as Ningde times, BYD and Mindray medical.

Mao index fell sharply today, mainly due to the drag of individual stocks such as food and beverage and household appliances. Midea Group fell more than 3%.

Hedge assets or sought after

Since the end of 2021, a shares have made a significant correction. For investors, the epidemic, the US stock market and the situation in Russia and Ukraine “affect” A-share investment sentiment. From the trading situation, the market risk aversion is very high, but the willingness to “bottom” is also very strong.

In case of conflict in Ukraine, will it bring sustained damage to the global asset market? In this regard, Tao Dong, a director of Credit Suisse First Boston and chief economic analyst in Asia, believes that one is to look at the oil supply and the other is the domestic demand of the United States and China. The former has a little uncertainty, while the latter should not be affected. Of course, once there is a military action in Ukraine, the energy price, consumption and investment climate in Europe may be affected, and the impact on the global economy is basically local.

Guo Shiliang, an independent financial commentator, told the international finance news that the current tense situation in Russia and Ukraine may have a negative emotional impact on the global market, but the actual impact remains to be assessed. At this stage, the market is most worried about the continuous rise of oil prices, which will lead to global imported inflationary pressure.

Guo Shiliang further said that the market chain reaction caused by the tension between Russia and Ukraine is gradually reflected. At present, it is more likely to be reflected in the venting of investment sentiment. A shares and Hong Kong shares will also be affected by factors such as repeated outbreaks and the expected warming of interest rate hikes by the Federal Reserve. In the downward trend, the market is more vulnerable to adverse factors and is easy to amplify negative factors. At present, the market investment sentiment and confidence are fragile, the risk aversion is dominant, and the risk averse assets may be more easily sought after by the market funds.

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