China Banking Regulatory Commission (CBRC) will respond to market fluctuations: it will promote the healthy development of the capital market from five aspects.
Ministry of Industry and Information Technology: Comprehensively carry out special supervision work on order rectification of rare earth industry
Market review
Market comment: The CSRC expressed its support for A shares in intraday trading, and the market rebounded.
Macro perspective: the initial GDP of the euro zone in the third quarter increased by 1.7% year-on-year, hitting a four-year low.
Communication industry: the allocation of funds is close to the historical low, and it may encounter an inflection point in the short term.
Futures information
Metal energy: gold 276.45, down 0.36%; Copper 48960, down1.77%; Rebar 4 130, down1.14%; Rubber 1 1 165, down1.63%; The PVC index was 6390, down1.31%; Zheng Chun 3006, down1.54%; Shanghai Aluminum 14070, down 0.35%; Shanghai nickel 98240, down 0.43%; Iron ore 532, down1.12%; Coke 2382, down 0.58%; Coking coal 1384.5, down 0.93%; Crude oil was 532.6, down1.24%;
Agricultural products: soybean oil 5660, down 0.42%; Corn 19 10, up1.0%; Palm oil 4644, down 0.30%; Cotton 14850, down 0.07%; Zheng Mai 2560, up 0.00%; Sugar 5 102, up 0.28%; Apple 1 1342, up1.35%;
Exchange rate: Euro/USD 1. 1344, down 0.28%; USD/RMB 6.9703, down 0.05%; USD/HK$ 7.8424, down 0.0 1%.
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1. The CBRC will respond to market fluctuations: it will promote the healthy development of the capital market from five aspects.
101On the afternoon of October 30th, the State Council held a press conference on banking insurance services for private and small and micro enterprises. When answering a reporter's question, Wang Zhaoxing, vice chairman of China Banking and Insurance Regulatory Commission, said that there have been some fluctuations in the capital market, especially in the stock market recently, and the the State Council Financial Stability and Development Committee has also made a serious study on the stability and future development of the financial market and made a comprehensive judgment on the current market fluctuations. It should be said that there are many factors of current market fluctuation, largely because the world economy and domestic economy have entered the stage of periodic structural adjustment. At the same time, we can see that there have been obvious fluctuations and even obvious declines in markets around the world. Wang Zhaoxing further stated that under the leadership of the State Council Financial Stability and Development Committee, we have taken many measures. Recently, the the State Council Financial Stability and Development Committee held several meetings to study and make a series of arrangements, and relevant policies are being implemented one by one. We believe that strengthening system construction, strengthening corporate governance, improving market transparency, improving legal system construction and strengthening investor protection will be our next direction to promote the healthy development of the capital market. As far as I know, the the State Council Financial Stability and Development Committee will continue to intensify its efforts and take measures in this regard.
Comments: Following the 10th Special Meeting on Preventing and Resolving Financial Risks held by the State Council Financial Stability and Development Committee, which focused on analyzing the economic and financial situation in the third quarter and doing a good job in further improving the financial environment of enterprises and preventing and resolving financial risks, the central bank, CSRC and China Banking and Insurance Regulatory Commission successively issued relevant policies to promote the stable and healthy development of the capital market. Judging from Wang Zhaoxing's position, the management is very concerned about the fluctuation of the capital market and financial stability. "We should have every reason to have confidence in China's capital market." This news will help to further stabilize market expectations and benefit the broader market.
(investment consultant? Jin Cai? Certificate number of registered investment consultant: S02606 1 1090020)
2. Ministry of Industry and Information Technology: comprehensively carry out special supervision work on order rectification of rare earth industry.
According to the website of the Ministry of Industry and Information Technology, since the publication of "Several Opinions of the State Council on Promoting the Sustainable and Healthy Development of Rare Earth Industry" (Guo Fa [201]12), the members of the inter-ministerial coordination mechanism for rare metals have jointly launched several rounds of special actions to crack down on violations of rare earth laws and regulations, and investigated and dealt with a number of typical cases, and the industry order has improved. However, driven by interests, black and rare earth problems such as private mining and unplanned production still occur from time to time, which seriously interferes with the market order and the normal production and operation activities of legitimate enterprises. The illegal production and management of rare earths has become a major challenge for the development of the industry.
In order to further deepen inter-departmental cooperation, effectively implement the regulatory responsibilities of local governments, and maintain a high-pressure situation against rare earth violations, with the approval of the leaders of the State Council, from this year, members of the inter-ministerial coordination mechanism for rare metals will jointly organize and urge key rare earth producing areas to carry out order rectification work. This inspection was led by the leaders of the Ministry of Industry and Information Technology, the Ministry of Natural Resources, the Development and Reform Commission, the Emergency Department, the General Administration of Customs, the Tax Headquarters, the General Administration of Market Supervision and other departments, with the participation of industry associations, experts and mainstream news media. Divided into 8 inspection teams, which lasted for 1 month, focusing on the implementation of local government rectification work, the implementation of rare earth enterprise policies, and the investigation and handling of reporting clues. Enterprises with outstanding problems such as unplanned and over-planned production, unlicensed exploration and mining, illegal rare earth products trading, environmental pollution and tax evasion. And where the work is not implemented, the supervision is not in place, and the investigation is not timely, it will be notified to the whole country and the relevant personnel will be held accountable according to law. This inspection will give full play to the supervisory and guiding role of the news media, publicize local work achievements and experiences in a timely manner, expose typical cases of illegal acts found, and create a good public opinion atmosphere and external environment for the order rectification work. The ultimate goal of supervision is to promote the implementation of policies, maintain a high-pressure situation against illegal rare earth enterprises, enhance the awareness of local governments and key enterprises to take the initiative and take responsibility, and actively grasp the requirements of order rectification. By exposing and informing illegal enterprises, we will warn enterprises in the industry not to touch the red line of illegal activities, create a standardized and orderly market order and a good business environment for legitimate enterprises, improve the development quality of rare earth industry, and promote the coordinated development of upstream and downstream industries.
Comments: Carrying out special supervision to rectify the order of the rare earth industry and crack down on illegal activities in the rare earth industry will help improve the development quality of the rare earth industry and be beneficial to listed companies in the rare earth industry. It is expected that the related stocks will be active in the short term.
(investment consultant? Jin Cai? Certificate number of registered investment consultant: S02606 1 1090020)
Market review
1, market comment: CSRC supported A shares in intraday trading, and the market rebounded.
The market opened slightly lower on Tuesday, and then the RMB exchange rate hit a new low of 10, which once caused market panic and fell rapidly. Then it rose rapidly after the CSRC announced measures to further stabilize the capital market. The successive efforts of the insurance sector and the securities sector have effectively boosted market confidence, with the Shanghai and Shenzhen 300 Index rising by more than 2%. Although the market fell back in the afternoon, the overall performance of the market was still relatively good. At the close, stocks in the two cities rose generally, with 69 daily limit stocks and 5 daily limit stocks.
On the disk, after two days of short-term adjustment, the securities sector has once again become the engine of today's market. Individual stocks in the sector reappeared daily limit, and the volume of the sector index soared by 4.99%, which is expected to remain strong in the near future. In the brewing sector, which almost fell across the board the day before, the index plunged 2.96% again and continued to bottom out. The overall weakening trend of the plate is difficult to reverse in the short term. It is expected that the weakness of white horse stocks will continue for some time. Tuesday is a special day, and the intraday CSRC and CBRC once again supported A shares. The policy of maintaining the stable development of the market and guiding various funds to enter the market has gradually changed from a slogan to a landing policy, and investor confidence has quickly recovered. Judging from the market performance, the recent continuous strength of the securities sector also indirectly reveals the trend of improving market sentiment. Therefore, we maintain the view that the short-term market is expected to rebound further. In operation, holding shares is the main way to avoid the weakness of brewing consumption, and it is suggested to pay attention to the beautiful high-quality growth stocks in the third quarterly report.
(The investment consultant has registered the investment consultant certificate number: S02606 130900 15)
2. Macro view: The initial GDP of the euro zone in the third quarter increased by 1.7% year-on-year, a four-year low.
The initial GDP of the euro zone in the third quarter increased by 1.7% year-on-year, hitting a four-year low. Expected growth 1.8%, the previous value increased by 2. 1%. The chain increased by 0.2%, expected to increase by 0.4%, and the previous value increased by 0.4%.
Investment Comments: Since the third quarter, except for the United States, most economies in the world have shown signs of economic slowdown, especially in the euro zone. The economic slowdown in the euro zone directly affects the trend of the euro against the US dollar, and the US dollar index has continued to strengthen recently, largely because of the weakness of the euro. Therefore, although the RMB has depreciated against the US dollar recently, it is not weak compared with other currencies.
(The investment consultant has registered the investment consultant certificate number: S02606 130900 15)
3. Communication industry: the allocation of funds is close to the historical low, and it may encounter an inflection point in the short term.
According to the data of the third quarterly report of wind Fund, as of September 30th, 20 18, Public Offering of Fund's position in the communication industry accounted for 1.6%, which was close to the historical low (20 12Q4= 1.0%), compared with 20 18Q2.
Investment Comments: Affected by ZTE's sanctions, many funds have reduced their allocation to the communications sector this year. Then 5G is one of the most certain industries in the next year or two. With the advancement of 5G, the performance of the 5G sector will be gradually realized in the next year or two. At present, the allocation position of the communication sector is low, but since the third quarter, the organization has gradually increased the allocation of the communication sector. It is suggested that investors can pay attention to the target of performance determination or fundamental improvement in the sector.
(The investment consultant has registered the investment consultant certificate number: S02606 130900 15)