Summary of this issue

Key recommendations

The central bank has made a big move, and private enterprise financing has received huge benefits

The Zhuhai Air Show was held, focusing on Showcasing military technological achievements

Market Comments

Market Comments: The overall policy tone is warm and trading remains active. It is recommended to pay attention to deterministic opportunities

Macro perspective: the United States Voting starts today in the mid-term elections, and the Trump administration welcomes the "high school entrance examination" for the administration

Photovoltaic industry: Photovoltaic policy reversal, photovoltaic installed capacity is expected to increase in 2020

Futures Information

Metal energy: gold 277.95, up 0.18%; copper 49710, down 0.64%; rebar 3869, down 1.75%; rubber 11320, up 0.40%; PVC index 6245, down 0.87%; Zheng Chun 2873, down 2.35% ; Shanghai Aluminum 13945, up 0.07%; Shanghai Nickel 98350, up 0.28%; Iron Ore 505.0, down 0.39%; Coke 2390.0, up 1.14%; Coking Coal 1357.5, flat; Brent Oil 71.74, down 1.10%.

Agricultural products: soybean oil 5580, up 0.25%; corn 1952, up 0.21%; palm oil 4606, down 0.65%; cotton 15345, down 0.78%; Zhengmai 2606, flat; sugar 5091, up 0.12% ; Apple 11659, up 3.71%.

Exchange rate: EUR/USD 1.14, up 0.10%; USD/RMB 6.92, down 0.11%; USD/HKD 7.83, up 0.01%.

Key Recommendations

1. The Central Bank’s big move will bring huge benefits to private enterprise financing

Event: On November 6, Yi Gang was interviewed by the Economic Daily It was revealed at the time that there are "real money" policies and measures to help private enterprises solve the problem of difficult and expensive financing.

Comments: The private economy supports "half of the national economy" and solving the problem of difficult and expensive financing for private enterprises is not only a "blood transfusion" for private enterprises, but also a boost for economic development. In order to solve the problem of financing difficulties and expensive financing for private enterprises, the central bank has resorted to another big move. The central bank is studying the establishment of equity financing support tools for private enterprises, and promotes the establishment of equity financing support tools for private enterprises by qualified private equity fund managers, securities companies, commercial bank financial asset investment companies and other institutions, with the People's Bank of China providing initial guidance funds. Drive the joint participation of financial institutions and social capital, and provide phased equity financing support for private enterprises experiencing financial difficulties in accordance with the principles of marketization and rule of law. Since the beginning of this year, the People's Bank of China has adopted a stable and neutral monetary policy from a macro perspective to ensure reasonable and sufficient liquidity. At the same time, it has adopted a "three arrows" policy combination to allow liquidity to flow to private enterprises and places where it is most needed.

(Investment consultant Zhong Yanling’s registered investment consultant certificate number: S0260613020024)

The Zhuhai Air Show was held to showcase military scientific and technological achievements

Event: The 12th China Aviation The exhibition will be held in Zhuhai City, Guangdong Province from November 6th to 11th. This Zhuhai Airshow will attract 770 exhibitors from 43 countries and regions around the world, of which international exhibitors account for about 45%. More than 100 aircraft are expected to be on display. The Zhuhai Air Show will not only showcase my country's military scientific and technological achievements, but also directly promote China's military exports.

Comment: Supported by favorable factors such as technological progress in China’s military industry and the lack of political strings attached to military exports, China’s military industry is expected to further increase its international market share and remain the third largest defense exporter in the world after the United States and Russia. Location. Historically, military export orders have been reached during the Zhuhai Air Show in the past, which will provide an event stimulus to the A-share military industry sector. In the first three quarters of 2018, the overall revenue of the national defense and military industry increased by 11.53% year-on-year, and the net profit attributable to the parent company increased by 22.85% year-on-year, indicating significant performance growth. The current market expectations are gradually recovering, which is expected to lead to an increase in overall risk appetite. In addition, with the reversal of positions, from the perspective of trading behavior, there is also hope for a marginal improvement in funds, and the proportion of fund positions will also further increase. Therefore, we are optimistic about the future performance of the military industry sector.

(Investment consultant Zhong Yanling’s registered investment consultant certificate number: S0260613020024)

Market comments

1. Market comments: The tone of the policy is generally warm, and individual stock trading remains stable Active, it is recommended to pay attention to deterministic opportunities

The market consolidated within a narrow range on Tuesday, and transactions continued to shrink. Looking at the market, venture capital, papermaking, and real estate sectors were among the top gainers, while garden engineering, decoration, and securities firms fell. As of the close, the Shanghai Composite Index was at 2659.36 points, down 0.23%, the Shenzhen Component Index was at 7791.25 points, down 0.61%; the Chuang Index was at 1349.11 points, down 0.02%. Short-term news is intertwined with bulls and bears, resulting in relatively volatile markets. For example, the announcement that the Shanghai Stock Exchange will establish a science and technology innovation board and pilot a registration system will have a psychological impact on market sentiment in the short term. But on the other hand, a series of recent policy revisions still provide support to the market, and the current market risk appetite recovery is still worth looking forward to. It is expected that the volatile rebound market is still expected to continue.

Operationally, it is recommended to focus on opportunities in white horse blue chips and high-quality growth stocks with better performance certainty. In terms of industry, it is recommended to focus on opportunities in finance, real estate, infrastructure, medicine, TMT and other industry sectors. There are risks in the stock market, so investment needs to be cautious.

(Investment consultant Gu Zhixiong’s registered investment consultant certificate number: S02606611020066)

2. Macroscopic perspective: The U.S. midterm elections start today and the Trump administration will usher in the "high school entrance examination" of the administration

On the 6th local time, the United States will usher in the midterm election voting day. All seats in the House of Representatives and some seats in the Senate will be up for election. The ruling Democratic Party hopes to retain its majority in Congress, while the opposition Democratic Party hopes to regain control of both houses of Congress through mid-term elections. This election is also regarded by the American media as a "high school entrance examination" for current President Trump: How voters will rate Trump's two-year performance will be related to the future prospects of the president and party president.

(Investment consultant Gu Zhixiong registered investment consultant certificate number: S02606611020066)

Photovoltaic industry: Photovoltaic policy reversal, photovoltaic installed capacity is expected to increase in 2020

According to Photovoltaic Gate reported that on November 2, the National Energy Administration held a symposium on the mid-term evaluation results of the 13th Five-Year Plan for solar energy development. Relevant leaders of the National Energy Administration have stated that they will continue to strongly support the development of the photovoltaic industry, and will gradually remove subsidies before 2022 (it is expected that subsidies will be withdrawn in 2020), and will not promote the process of grid parity across the board (this year’s 531 New Deal is one-size-fits-all, and has not fully listened to enterprises). Opinion). According to discussions between relevant leaders and participating representatives, the 210GW target is also a bit low. The photovoltaic installation target of China’s 13th Five-Year Plan for Solar Energy Development is expected to be adjusted to more than 250GW, or even reach 270GW. Industry leaders are expected to benefit.

(Investment consultant Gu Zhixiong registered investment consultant certificate number: S02606611020066)