Summary of this issue
Key recommendations
The China Securities Regulatory Commission publicly solicits opinions on the "Administrative Measures for Convertible Corporate Bonds (Draft for Comment)"
< p> Passenger Car Association: Preliminary estimates of retail sales in October were 1.955 million units, a year-on-year increase of about 6%Market Comments
Market Comments: The weekend news was stable, and the market will continue to have structural trends , grasp the main line of economic recovery
Macro perspective: Financial technology unicorn "Lufax" is expected to land on the New York Stock Exchange this Friday
Military industry: industry fundamentals continue to improve. , the valuation of industry leaders will increase
Futures Information
Metal Energy: Gold 404.92, down 0.48%; Copper 51990, down 0.88%; Rebar 3574, down 0.83%; Rubber 14795 , up 0.24%; PVC index 6680, down 0.52%; Zheng Chun 2059, down 1.67%; Shanghai Aluminum 14460, down 0.31%; Shanghai Nickel 119760, down 0.42%; Iron ore 761.5, down 2.99%; Coke 2106.0, down 0.89 %; coking coal 1341.5, down 1.14%; Brent oil 42.49, down 1.76%;
Agricultural products: soybean oil 7008, up 0.89%; corn 2571, down 0.04%; palm oil 5996, up 0.81%; Zheng cotton 14465, down 0.58%; Zheng wheat 2700, down 0.59%; white sugar 5234, down 1.19%; apple 7689, down 3.72%; red dates 10035, down 0.15%;
Exchange rate: EUR/USD 1.19 , up 0.34%; USD/RMB 6.68, up 0.03%; USD/HKD 7.75, flat.
II. Key recommendations
1. The China Securities Regulatory Commission publicly solicits opinions on the "Administrative Measures for Convertible Corporate Bonds (Draft for Comment)"
Event: China Securities Regulatory Commission On October 23, the "Administrative Measures for Convertible Corporate Bonds (Draft for Comments)" and "Administrative Measures" were publicly solicited. In response to the recent phenomenon that individual convertible bonds have been over-hyped and experienced sharp rises and falls, the "Administrative Measures" 》Focus on solving problems such as inadequate investor suitability management, lack of checks and balances in the trading system, unequal rights and responsibilities between issuers and investors, incomplete daily monitoring, and lack of fiduciary management systems, by improving transaction transfers, investor suitability, and information disclosure , protection of rights and interests of convertible bond holders, redemption and sell-back clauses and other systems to prevent transaction risks and strengthen investor protection.
Comments: Convertible bonds have attracted the attention of some investors because they have both "debt characteristics" and "equity characteristics" and a trading system that is different from A-shares, but they themselves have a certain value. , the over-hyping of some types of convertible bonds completely deviates from the value of the convertible bonds themselves and becomes speculative types, which will inevitably lead to greater risks. It is recommended that investors avoid such types of types.
(Investment consultant Zhong Yanling’s registered investment consultant certificate number: S0260613020024)
2. Passenger Transport Association: Preliminary estimates of retail sales in October were 1.955 million vehicles, a year-on-year increase of approximately 6%
Event: According to the Passenger Car Association, the narrow passenger car retail market is initially estimated to be around 1.955 million units this month, a year-on-year increase of approximately 6.0%.
Comment: Car sales continued to grow rapidly in October, and the industry's positive trend continued. As October will begin to enter the year-end stock replenishment stage of manufacturers, it is expected that subsequent car production and sales will maintain high growth. The recovery of the industry will provide greater support to the performance of related companies, and future valuations are expected to further increase.
(Investment Consultant Zhong Yanling’s registered investment consultant certificate number: S0260613020024)
3. Market Comments
Market Comments: The weekend news was stable and the market will continue to be structural Market trends, grasp the main line of economic recovery
Last Friday, the major stock indexes fluctuated and pulled back, with a turnover of 687.7 billion in the two cities. Looking at the market, banking, shipbuilding, marine economy, brewing industry and other sectors were among the top gainers, while biovaccines, photoresist, social security heavyweights, second-child concept and other sectors were among the top losers. In the two cities, 31 companies hit the daily limit and 9 companies hit the daily limit. The Shanghai Composite Index fell 1.04% to 3,278 points, the Shenzhen Component Index fell 2.00% to 13,128.46 points, and the Chuang Index fell 2.72% to 2,600.84 points. Overall, the wait-and-see sentiment in the market is strong. Considering that the news over the weekend is relatively stable, the market is expected to continue its structural trend this week. It is recommended to continue to grasp the main line of economic recovery, strategically allocate leading financial and real estate companies, and pay attention to the prosperous sectors such as military industry and cloud industry in the third quarter. Computing, environmental protection and other sectors. There are risks in the stock market, so investment needs to be cautious.
(Investment consultant? Gu Zhixiong? Registered investment consultant certificate number: S02606611020066)
Macro perspective: Financial technology unicorn "Lufax" is expected to land on the New York Stock Exchange this Friday
Event: The financial technology unicorn "Lufax Holdings" is expected to be listed on the New York Stock Exchange on October 30, Beijing time. According to the prospectus, Lufax's stock code is "LU" and it plans to issue 175 million ADS shares, with the issuance pricing range being US$11.5-13.5 US dollars.
Based on this calculation, Lufax Holdings raised US$2.013 billion to US$2.363 billion.
Comment: Analysts believe that Lufax is expected to become the largest Chinese concept stock IPO listed on the US stock market this year, and may be the largest financial technology IPO in the United States to date. The overall impact on the market is expected to be neutral from the news perspective Slightly towards the front.
(Investment consultant Gu Zhixiong registered investment consultant certificate number: S02606611020066)
Military industry: the fundamentals of the industry continue to improve, and the valuation of industry leaders will increase
The situation in the periphery is turbulent, and coupled with the increasing securitization of military assets, it is expected that the fundamentals of the military industry will continue to improve in 2020; secondly, the industry is less affected by the epidemic and has a certain safe haven effect. The strategy is bullish on the military industry sector. It is recommended to focus on leading stocks.
(Investment consultant Gu Zhixiong registered investment consultant certificate number: S02606611020066)