On March 18th, the stock indices of the two markets rose unilaterally during trading, with the Shanghai Composite Index rising nearly 1% to a new high for the year, and the ChiNext Index and the Science and Technology Innovation 50 Index rising more than 2%. As of the close, the Shanghai Composite Index rose 0.99% to 3084.93 points, the Shenzhen Component Index rose 1.46% to 9752.83 points, the ChiNext Index rose 2.25% to 1926.4 points, and the Science and Technology Innovation 50 Index rose 2.07%; The total transaction volume between the two cities is 1137.9 billion yuan, an increase of 193.4 billion yuan from last Friday; Northbound funds have net purchases of 2.825 billion yuan and have been increasing positions for 7 consecutive days. In terms of industries, the media and semiconductor sectors have seen a strong rise, while securities firms, automobiles, pharmaceuticals, environmental protection, insurance, oil and other sectors have strengthened. Low altitude economy, consumer electronics, and automotive dismantling concepts are also active.
Guosheng Securities stated that with a concerted policy combination, the market is poised to rise, and the short-term index may challenge 3100 points upwards. Low performing sectors, combined with AI+, or the main investment theme in the market in March, may have high market sentiment, but it is not recommended to pursue an emotional upward trend, as there is still suppression above, and it is not too late for the market to become more aggressive after a breakthrough in volume. Strategically, it is recommended to focus on the direction of AI+; As the first quarter report approaches, the market's attention to performance will increase. It is recommended to focus on sectors and stocks that are facing marginal improvement or exceeding expectations in performance.
Analysis of Today's Investment Opportunities
Nvidia launches next-generation artificial intelligence supercomputers
Huang Renxun, co-founder and CEO of NVIDIA, delivered a keynote speech titled "Witnessing the Moments of AI Transformation", officially kicking off the 2024 NVIDIA GTC Conference. Huang Renxun announced the launch of the next generation of artificial intelligence supercomputers, stating that TSMC and Synopsys will use Nvidia's computational lithography technology. Huang Renxun also announced the official launch of a new generation AI graphics processor (GPU) called Blackwell, calling it "very, very powerful". The first Blackwell chip, named GB200, will be launched later this year.
Dongwu Securities stated that this conference will showcase technologies such as generative AI, automobiles, and robots, which will further catalyze the AI industry chain and continue to be optimistic about investment opportunities in the AI industry chain.
Accelerated promotion of domestic sea breeze
According to the official websites of various regional governments, the 800000 kilowatt sea wind project of Jiangsu Three Gorges Energy Dafeng has recently been approved, and the Qingzhou Five, Six, and Seven sea wind projects have released the "Construction Engineering Planning Permit" for the project before approval. This measure has released a signal to accelerate the resolution of related project approval and waterway issues in Jiangsu and Guangdong. In addition, after the traditional off-season in the first quarter, multiple sea breeze projects in Guangdong, Hainan, Zhejiang and other provinces in China have started construction one after another, gradually entering the peak construction season in March.
CITIC Securities stated that in China, with the advancement of approval and recovery of domestic offshore wind projects, coupled with strong demand for installed capacity during the 14th Five Year Plan period, it is expected that the domestic offshore wind power industry will experience a resonance of information catalysis and economic recovery. On the foreign side, as European and Southeast Asian countries gradually enter the peak period of sea breeze construction, leading domestic sea breeze manufacturers rely on their product advantages to enter the overseas supply chain for global layout, which is expected to accelerate their overseas expansion and global substitution, and fully benefit. In the new stage of accelerated recovery of domestic sea breeze and growth of overseas sea breeze, it is recommended to focus on the offshore wind power industry chain, including submarine cables, pipe piles, castings and forgings, supporting equipment, and complete machines.
The price of live pigs is rising out of season
Data shows that the price of live pigs continued to rise last week, with an average price of 14.49 yuan/kg nationwide, an increase of 0.22 yuan/kg compared to the previous week.
Regarding this, China Post Securities pointed out that the short-term price rebound does not affect the trend of long-term capacity depletion: 1) After a full year of significant losses in 2023, many companies in the industry have extremely tight cash flow. Currently, the pattern of strong supply and weak demand is difficult to change, and industry losses will continue, which will accelerate the exit of enterprises; 2) From the situation in the northern region at the end of 2023, the virus situation in this round is more complex than in previous years. With the arrival of spring, the disease prevention and control of southern farmers will face challenges; 3) Currently, the industry is generally cautious in its expectations, and some companies have lowered their targets for listing in 2024.
The institution stated that the current low industry valuation is a good opportunity for a left side layout. It is recommended to prioritize targets with prominent cost advantages, while also considering growth potential. 1) Leading enterprises have high certainty and relatively obvious cost advantages. Suggest following: Muyuan Shares and Wenshi Shares. 2) Small and medium-sized enterprises are experiencing faster growth in their exports, and there is greater room for cost reduction. Suggest following: Giant Agriculture and Animal Husbandry, Huatong Shares, Tiankang Biology, and Tang Renshen.
Other news that affects the market
The FTSE Russell Na A index sample is regularly adjusted and effective
On March 18th, the FTSE Russell Global Stock Index's first quarter regular adjustment of A-sample stocks officially took effect. This regular adjustment added 76 A-sample stocks, including 40 in the Shanghai Stock Exchange and 36 in the Shenzhen Stock Exchange. At the same time, the inclusion factor (i.e. market value adjustment coefficient) of over 600 newly included A-shares in the regular sample adjustment in September 2023 has also increased from 12.5% to 25%.
After the adjustment took effect, the FTSE Russell Global Stock Index has included a total of 1973 A-share samples, with A-shares having weights of approximately 6.1% and 0.6% in emerging markets and global market indices, respectively. Market analysts say that this adjustment is expected to bring over 5 billion yuan in incremental funds to A-shares, while also increasing the enthusiasm and trading activity of foreign active funds in A-shares allocation.
China's pilot program for deepening medical service price reform will expand its scope
According to the National Medical Insurance Administration on the 18th, on the basis of five pilot cities in Tangshan, Hebei, Suzhou, Jiangsu, Xiamen, Fujian, Ganzhou, Jiangxi, and Leshan, Sichuan, Inner Mongolia, Zhejiang, and Sichuan will serve as pilot provinces for deepening the reform of medical service prices and carry out provincial trials.
Previously, the National Medical Insurance Administration and other departments jointly issued the "Pilot Plan for Deepening Medical Service Price Reform", which clearly stated that through a pilot period of 3 to 5 years, we will explore the formation of replicable and promotable medical service price reform experiences. Over the past two years, the first five pilot cities have focused on reforming and piloting important mechanisms such as total price control, classification management, dynamic adjustment, monitoring and evaluation of medical services.
Evergrande Real Estate fined 4.175 billion yuan
On the evening of March 18th, Evergrande Real Estate issued an announcement regarding receiving a prior notice of administrative penalties and market bans from the China Securities Regulatory Commission.
The announcement shows that the China Securities Regulatory Commission (CSRC) has completed its investigation into the suspected illegal disclosure of bond information by Evergrande Real Estate. The CSRC plans to impose administrative penalties on Evergrande Real Estate Group Co., Ltd., Xu Jiayin, Xia Haijun, Pan Darong, Pan Hanling, Ke Peng, Zhen Litao, and Qian Cheng, as well as take measures to prohibit entry into the securities market in accordance with the law.
The China Securities Regulatory Commission has decided to impose penalties on Evergrande Real Estate for its illegal disclosure of false records in its 2019 and 2020 annual reports, suspected fraudulent issuance of corporate bonds by Evergrande Real Estate, and failure to submit relevant reports or fulfill information disclosure obligations in accordance with regulations. Taking into account the above three factors, Evergrande Real Estate is ordered to make corrections, given a warning, and fined 4.175 billion yuan; Give a warning to Xu Jiayin and impose a fine of 47 million yuan; Give a warning to Xia Haijun and impose a fine of 15 million yuan; Warn Pan Darong and Pan Hanling, and impose fines of 9 million yuan each; Give a warning to Ke Peng and impose a fine of 3 million yuan; Impose a fine of 2 million yuan on Zhen Litao; Give a warning to Qian Cheng and impose a fine of 200000 yuan.
Maotai launches new trendy drinks
On March 18th, during the 110th National Sugar and Wine Fair, the new product launch event of Maotai Ecological Agriculture UMEET Blueberry Sparkling Wine was held in Chengdu. It is reported that the UMEET blueberry sparkling wine released this time has five flavors: blueberry flavor, jasmine tea flavor, grapefruit flavor, passion fruit flavor, and green plum flavor. The alcohol content is 6 degrees, and each bottle has a specification of 375 milliliters. The market price is 118 yuan/bottle. Among them, passion fruit flavor and green plum flavor will be launched in the future.
Ding Xiongjun, Secretary of the Party Committee and Chairman of Maotai Group, attended the press conference and delivered a speech. Ding Xiongjun stated that UMEET blueberry sparkling wine is an important new product of Maotai Group that conforms to the development trend of youthfulness, low alcohol content, fashion, and trendy drinking; It is an important attempt to enrich the product range, optimize the price range, and create a full Maotai brand product matrix.