US stocks continued to improve. China and the United States are ready to implement the signing of the first-phase agreement
In addition, the United States plans to remove China from the list of exchange rate manipulators, creating a good atmosphere for subsequent negotiations, and the market is optimistic. The trend of the US dollar has stabilized. The 10-year US bond yield has risen to 1.84%, while oil and gold prices have been under pressure. The performance of the mainland stock market is up, the performance of the renminbi is strong, the Shanghai Composite Index has risen to 3100 points, and the turnover of the Shanghai and Shenzhen markets has also increased slightly. The performance of Hong Kong stocks continued to be strong, driven by external trends, coupled with heavy blue chip stocks being sought after by funds, the Hang Seng Index was approaching the level of 29,000 points, and trading continued to remain active. The short-term trend of the market has not been reversed. It is expected that the index is expected to test the 29,500 resistance level, and the support below is at 28,500.
Positive for new energy auto stocks
The Mainland Passenger Car Market Information Joint Announcement announced that in 2019, the cumulative sales volume of generalized passenger cars in the Mainland reached 21.037 million units, a year-on-year decrease of 7.5%. The cumulative output of generalized passenger cars was 21,127,800 units, and the output decreased by 9.7% year-on-year. In December alone, the output of generalized passenger vehicles reached 2.144 million units, an increase of 1.1% year-on-year, and the sales volume was 2.171,800 units, a year-on-year decrease of 3.6%. According to the data of the China Federation of Automobile Manufacturers, the sales of mainland cars have entered a cold winter since mid-2018, and automobile sales have been declining year-on-year. Most months have recorded significant year-on-year decreases. The CIC believes that the auto market in the Mainland will come out of the valley in 2020, and the growth rate of passenger cars will improve from last year. The Federation of Automobile Manufacturers predicts that in 2020, the sales volume of narrow passenger cars will reach 21 million, and the sales volume is expected to increase by 1% year-on-year. Although the market expects that the mainland auto market’s sales are expected to stop falling this year, it is still necessary to observe the monthly sales changes to determine whether there is a turnaround.
The number of new energy vehicle registrations in the Mainland last December fell by 15% year-on-year to 137,000 units, but rose by 74% month-on-month, which was better than market expectations. The sales volume of pure electric vehicles was 119,000 in December last year, a month-on-month increase of 76%. Officials from the Ministry of Industry and Information Technology said that subsidies for new energy vehicles will no longer drop from July 1 this year. Means that the original arrangements for the withdrawal of the new energy vehicle subsidy policy after 2020 may be postponed. The market is more concerned about the issue of new energy subsidies. Last year, the sales of new energy vehicles exceeded 1.206 million, of which November and December sales have returned to the average level before the decline in sales, reflecting the impact of reduced subsidies. The growth rate of sales declined, but the overall sales were basically the same as in 2018. The market expects that the mainland’s new energy vehicle subsidies this year will remain at the current level, becoming a catalyst for the industry, which will benefit all new energy vehicle related shares.
CITIC Securities Undervalued
The amendment of the securities law was recently reviewed and approved by the Standing Committee of the National People’s Congress to further improve the basic system of the securities market, effectively prevent and control market risks, improve the quality of listed companies, safeguard the legitimate rights and interests of investors, and promote the function of the securities market to serve the real economy. A series of reforms. The Mainland will fully implement the securities issuance registration system, cancel the issuance review committee system, and no longer adopt the approval system. Significantly streamline IPO conditions. CITIC Securities (6030) has a leading position in the industry of all major securities companies in the Mainland, and the return on equity performance is also better than the market average. CITIC Securities ranks first in the mainland in terms of equity and debt underwriting, and its customer base is also diversified. The implementation of this registration system will bring more opportunities for CITIC Securities. Earlier, the company also announced the acquisition of Guangzhou Securities, which is expected to increase the brokerage market share in southern China, which will help increase commission income. Although the stock price of CITIC Securities has rebounded a lot from the low level, the current valuation is still at a low level and the market outlook is expected to rise further. Can be considered at the level of 17.8 yuan absorption, the upper target of 19.8 yuan, fell below 16.2 yuan stop loss.