Key Recommendations
Foreign Exchange Bureau: Cancel QFII and RQFII investment quota restrictions and expand financial market opening to the outside world
Chinese Academy of Agricultural Sciences: African swine fever vaccine is about to enter clinical practice Experimental stage
Market Comments
Market Comments: After consecutive gains, the market is consolidating at a high level, and individual stock themes are still active
Macro perspective: The second phase of China Insurance Investment Fund is coming Got it! Issuance scale of RMB 100 billion
Cosmetics: Alibaba’s total cosmetics sales in August were 18.1 billion yuan, a year-on-year increase of 51.1%
Futures Information
Metal Energy: Gold 345.1 , down 0.53%; Copper 47320, down 0.15%; Rebar 3481, down 0.11%; Rubber 12020, up 0.12%; PVC index 6505, down 0.08%; Zheng Chun 2258, up 0.31%; Shanghai Aluminum 14390, up 0.07% ; Shanghai Nickel 143800, up 0.39%; Iron ore 659.0, up 1.23%; Coke 1959.5, up 0.08%; Coking coal 1342.5, up 0.34%; Crude oil 477.4, up 0.00%;
Agricultural products: soybean oil 6070,
Exchange rate: EUR/USD 1.1043, down 0.04%; USD/RMB 7.1093, down 0.10%; USD/HKD 7.8399, up 0.02%.
(The above futures data come from Shanghai Futures Exchange, Dalian Commodity Exchange, Zhengzhou Commodity Exchange)
New stock tips?
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Key recommendations
1. State Administration of Foreign Exchange: Cancel restrictions on QFII and RQFII investment quotas and expand the opening of financial markets
In order to implement the provisions of the Party Central Committee and the State Council on promoting the formation of As part of the major decision-making and deployment of the new pattern of comprehensive opening-up and further opening up of my country's financial market, with the approval of the State Council, the State Administration of Foreign Exchange decided to cancel the Qualified Foreign Institutional Investor (QFII) and the RMB Qualified Foreign Institutional Investor (RQFII) (hereinafter collectively referred to as " Qualified Foreign Investors") investment quota limits.
The qualified foreign investor system is one of the most important systems for the opening up of China’s financial market. Since the implementation of the QFII system in 2002 and the RQFII system in 2011, more than 400 institutional investors from 31 countries and regions around the world have invested in China’s financial market through this channel. While sharing the results of China’s reform, opening up and economic growth, they have also actively Promoted the healthy development of my country's financial market.
For many years, the State Administration of Foreign Exchange has been insisting on actively promoting the opening up of the financial market and continuing to promote the foreign exchange management reform of the qualified foreign investor system on the premise of effectively preventing risks. It has canceled the relevant exchange in 2018 limit. The complete cancellation of investment quota restrictions for qualified foreign investors is another major reform measure taken by the State Administration of Foreign Exchange in the field of foreign exchange management for qualified foreign investors. In the future, foreign institutional investors with corresponding qualifications will only need to register to remit funds independently to carry out securities investments that comply with regulations. The convenience for foreign investors to participate in domestic financial markets will be greatly improved again, and China's bond market and stock market will also will be better and more widely accepted by the international market.
At the same time, the State Administration of Foreign Exchange is in the process of applying to the State Council to cancel the corresponding administrative licensing projects. After approval, the State Council will make a unified announcement to the outside world.
In the next step, the State Administration of Foreign Exchange will continue to deepen the reform of foreign exchange management, continue to take effective measures to expand opening to the outside world, support foreign investors to invest in domestic financial markets, and improve the facilitation of cross-border investment and financing. At the same time, we must adapt to opening-up, effectively prevent cross-border capital flow risks, and maintain national economic and financial security.
Comment: The complete cancellation of the investment quota limit for qualified foreign investors is a major reform for the State Administration of Foreign Exchange to implement the decisions and arrangements of the Party Central Committee and the State Council, deepen the reform and opening up of the financial market, and serve the new pattern of comprehensive opening up. It is also a proactive reform measure to further meet the investment needs of foreign investors in my country’s financial market. Removing restrictions on RQFII pilot countries and regions will help further facilitate foreign investors’ investment in the domestic securities market and enhance the depth and breadth of my country’s financial market opening. This news is a long-term positive for the A-share market in terms of capital. However, there is obviously still a process from relaxing restrictions to capital entry. In the short term, we need to pay attention to the volatility risk of the market rising and falling.
(Investment consultant? Cai Jin? Registered investment consultant certificate number: S0260611090020)
2. Chinese Academy of Agricultural Sciences: African swine fever vaccine is about to enter the clinical trial stage
The Chinese Academy of Agricultural Sciences announced on the 10th that after the successful laboratory research work in my country's African swine fever vaccine development in April this year, in August this year, the vaccine research and development work made new and important progress.
A double-gene deletion attenuated live vaccine has completed laboratory safety assessment and effective testing, breaking through the technical bottleneck of large-scale production. It has recently submitted a biosafety evaluation application to the Ministry of Agriculture and Rural Affairs and is about to enter the clinical trial stage.
Comment: The progress in the research and development of African swine fever vaccines is a catalyst for the overall rise of the animal vaccine sector. Once successfully developed, it will greatly expand the market space for animal vaccines, thus converting into growth in the performance of listed companies. In recent times, animal vaccine stocks as a whole have accumulated considerable gains. In the short term, we need to pay attention to the risk of rising and falling after being stimulated by relevant news. It is not recommended to participate in chasing the rise for the time being.
(Investment consultant? Cai Jin? Registered investment consultant certificate number: S0260611090020)
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Market comments
1. Market comments : After consecutive gains, the market consolidated at high levels, but individual stock themes remained active
The two cities opened slightly higher on Tuesday. After the opening, the technology stocks that had surged recently collectively corrected and fell rapidly, and heavyweight sectors such as brokerages and banks also fell rapidly. It led the index to a continuous downward trend, and the popularity on the market was average. In the afternoon, other topics such as pharmaceutical stocks, industrial hemp, and financial technology became active in the two cities, and the popularity recovered. The financial technology sector performed strongly, and the brokerage sector also rose rapidly, and the closing index decline narrowed. Overall, individual stocks have gone up and down, and the profit-making effect is average. On Tuesday, 58 companies hit the daily limit and 4 companies hit the daily limit. In terms of sectors, industry sectors such as planting and forestry, traditional Chinese medicine, and agricultural services were among the top gainers, while electronic manufacturing, semiconductors and components, communication equipment and other industry sectors were among the top losers. As of the close, the Shanghai Stock Exchange Index was at 3,021 points, down 0.12%; the Shenzhen Component Index was at 9,964 points, down 0.37%; the ChiNext Index was at 1,725 ??points, down 0.46%. The total transaction volume of the two cities was 696.302 billion yuan, a slight decrease from the 716.048 billion yuan on the previous trading day.
The index has been rising continuously recently. Since rebounding from the low point, there have been three gaps, accumulating a large amount of profits, and there is limited room for continued upside in the short term. At present, favorable policies are being continuously introduced, northbound funds are actively entering the market, and market trading volume is increasing and sentiment is improving. These are all signs of A-share strength, and the index is not affected. The short-term correction of the index on Tuesday is a normal phenomenon, and the market is likely to consolidate repeatedly around 3,000 points to accumulate strength. Generally speaking, the short-term sentiment of technology stocks, which has surged recently, has reached a climax and is undergoing differentiation and adjustment. Financial technology, medicine and other theme sectors have driven the overall recovery of the market, and the market has begun to rotate. There is no need to chase highs at this stage. Instead, you can dig out stagflation blue chip stocks with performance support at low levels and seize opportunities in structural market conditions. In terms of operation, wait for the opportunity to buy low and follow the market rhythm to seize the rotation opportunities of individual stocks and sectors.
(Investment consultant Zeng Zilei, registered investment consultant certificate number: S0260613090015)
2. Macroscopic perspective: The second phase of China Insurance Investment Fund is coming! The issuance scale is 100 billion.
In the current period of important strategic opportunities for economic development, China Insurance Investment is preparing to launch the second phase of China Insurance Investment Fund. The second phase of the fund implements a subscription system and plans to raise 100 billion yuan. It will mainly focus on key areas and regions in the country's economic development. A number of high-quality projects have been reserved.
Investment advisory comments: As our capital market system is established and improved and we continue to increase opening up to the outside world, more and more long-term funds will be allocated to A-shares in the future. In addition to domestic insurance funds and pension funds, there are also overseas QFII, MSCI index funds, etc. These funds will provide long-term stability and growth for A-shares in the medium and long term. Recently, domestic and foreign policies have frequently released favorable policies, and A-shares are expected to usher in a golden autumn market.
(Investment consultant Zeng Zilei’s registered investment consultant certificate number: S0260613090015)
3. Cosmetics: In August, Alibaba’s cosmetics sales totaled 18.1 billion yuan, a year-on-year increase of 51.1%.
In August 2019, Alibaba’s cosmetics sales totaled 18.1 billion yuan, a year-on-year increase of 51.1%, and an increase of 17.2pc from July. The sales volume was 270 million pieces, a year-on-year increase of 9.6%, and the average price was 67.6 yuan, a year-on-year increase of 37.8%. The industry continued to be highly prosperous, with both volume and price rising.
In terms of categories, sales of most categories increased month-on-month, with facial makeup, lip makeup, and perfume growing rapidly. Lipsticks and foundations are mainly international brands. Among domestic brands, Perfect Diary ranks high. In August, Perfect Diary sold 318,000 lipsticks and sold 22.93 million yuan. It ranked 2nd and 8th among major brands, and sold 266,000 foundations. pieces, with sales of 18.85 million yuan, ranking 1st and 4th among major brands.
Investment advisory comments: The cosmetics industry is a segmented industry that has experienced rapid growth in the consumer market in recent years. In addition to the upgrading of residents’ consumption and domestic substitution factors, the main reason is that some domestic cosmetics stores are rapidly sinking to the third and fourth tiers. In fifth-tier cities, the sales of domestic cosmetics leaders have increased rapidly this year, and their concentration has also increased rapidly. It is recommended that investors continue to pay attention to cosmetics leaders Proya and Marubi during the correction.
(Investment consultant Zeng Zilei registered investment consultant certificate number: S0260613090015)