Key recommendations

The Ministry of Finance is working with relevant departments to study and draft a consumption tax law

The latest list of new vehicle manufacturers has announced that Tesla is included

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Market Comments

Market Comments: The market has shrunk and fluctuated within a narrow range, and there may be a window for changes in the short term

Wholesale and retail: CPI increased by 3.0% year-on-year in September, hitting a record high New high in 6 years

Futures Information

Metal Energy: Gold 342.35, up 0.12%; Copper 46660, up 0.06%; Rebar 3311, up 0.21%; Rubber 11650, up 0.56% ;PVC Index 6320, down 0.16%; Zheng Chun 2207, up 0.41%; Shanghai Aluminum 13890, up 0.40%; Shanghai Nickel 128730, down 1.05%; Iron Ore 612, up 0.08%; Coke 1780.5, down 0.14%; Coking Coal 1233.5 , up 0.45%; crude oil 444.9, down 0.82%;

Agricultural products: soybean oil 6048, up 0.43%; corn 1855, up 0.43%; palm oil 4822, up 0.12%; cotton 12615, up 0.12%; Zhengmai 2336, up 0.13%; Sugar 5542, up 0.87%; Apple 7630, down 0.73%;

Exchange rate: EUR/USD 1.124, up 0.47%; USD/RMB 7.0813, down 0.28%; USD /HKD 7.8443 fell 0.01%.

(The above futures data come from Shanghai Futures Exchange, Dalian Commodity Exchange, Zhengzhou Commodity Exchange)

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Key recommendations

1. The Ministry of Finance is working with relevant departments to study and draft the consumption tax law

Xu Guoqiao, first-level inspector of the Taxation Department of the Ministry of Finance, held a meeting on October 17 stated at the press conference that under the current economic environment and the background of tax and fee reductions, the consumption tax reform will be advanced in an orderly manner adhering to the principle of basically stabilizing the overall tax burden. At the same time, in order to implement the legal principle of taxation, the Ministry of Finance is working with relevant departments to study and draft a consumption tax law. In the next step, the Ministry of Finance will take into account consumption tax reform and legislation, and coordinate and promote related work.

Comment: The market has been worried about the adjustment of the consumption tax in the liquor industry from the production link to the wholesale or retail link. Judging from Xu Guoqiao’s statement today, the consumption tax reform will adhere to the principle of basically stabilizing the overall tax burden. Progress is being made in an orderly manner, and "specific adjustments to items have been fully demonstrated and implemented steadily after submission for approval item by item." This news has a neutral impact on the market as a whole, but liquor stocks have experienced huge gains this year, and we still need to be wary of the sudden emergence of consumption tax and other factors that have an adverse impact on stock prices.

(Investment consultant? Cai Jin? Registered investment consultant certificate number: S0260611090020)

2. The latest list of new vehicle manufacturers has been announced, and Tesla is on the list

On October 17, the Ministry of Industry and Information Technology released a list of new vehicle manufacturers and changes in information for admitted companies. Tesla (Shanghai) Co., Ltd. appeared on the list of new vehicle manufacturers. The remarks showed that it was a newly-established pure-play vehicle manufacturer. Electric passenger car manufacturer.

Comment: Being shortlisted for the list of new vehicle manufacturers means that Tesla’s Shanghai Gigafactory has obtained the “birth certificate” for new cars to be manufactured. It is expected that companies related to the Tesla industry chain will benefit from cooperation with Tesla. Related concept stocks made some changes on Thursday afternoon. In the current relatively weak market situation, you need to be cautious when chasing the rise of concept stocks.

(Investment Consultant? Cai Jin? Registered Investment Consultant Certificate No.: S0260611090020)

Market Comments

1. Market Comments: The market has shrunk and fluctuated within a narrow range. Short-term or change market window

Affected by my country's official confirmation that China and the United States have reached a phased agreement and the surge in U.S. stocks, coupled with the release of financial data in September that exceeded market expectations, the Shanghai and Shenzhen stock markets collectively rose slightly on Wednesday. open. In early trading, driven by large financial sectors such as banking and insurance, the market once rose rapidly and crossed the 3,000-point integer mark. However, the large financial sectors briefly surged higher and then fell back, and the stock indexes followed suit and closed down across the board. As of the close, the Shanghai Composite Index fell 0.41%, the Shenzhen Component Index fell 0.31%, the Shanghai Composite 50 fell 0.35%, the CSI 300 fell 0.34%, the Small and Medium Enterprises Index fell 0.04%, and the ChiNext Index fell 0.27%. The transaction volume of the two cities continued to shrink slightly, with a total transaction volume of 423.5 billion. Only more than 1,000 stocks in the market ended in the green, with 34 stocks hitting their daily limit and 26 stocks hitting their daily limit.

From a disk perspective, a few sectors in the industry, such as chemical fiber, tourism, real estate, environmental protection, insurance, and medicine, closed up, while sectors such as semiconductors, brewing, mineral products, and agriculture, forestry, animal husbandry, and fishery were among the top decliners. In terms of themes, sectors such as genetic concepts, smart wearables, and biological vaccines performed well, but overall there is a lack of strong sectors that can lead the market. ST stocks weakened on a large scale, with 16 stocks closing at their daily limit. In general, the market has continued the dismal performance of the previous trading day, strong stocks are experiencing a correction again, and the fear of heights above 3,000 points is still there.

Taken together, factors such as the thunderous performance of individual listed companies and the third-quarter performance forecasts of a large number of growth stocks falling short of expectations have restricted the market’s continued long momentum in the near future. Floating funds after the market’s short-term surge are also needed. Give it some time to digest. Since investor sentiment is obviously becoming more cautious, we believe that the market is more likely to fluctuate around 3,000 points in the short term, but we insist that the midline upward momentum has not changed. In terms of operation, it is recommended that investors pay attention to controlling their positions and continue to focus on high-quality blue-chip sectors such as banks and insurance in the near future, as well as high-quality growth stocks whose third-quarter performance forecasts exceed expectations.

(Investment consultant Zeng Zilei registered investment consultant certificate number: S0260613090015)

2. Wholesale and retail: CPI increased by 3.0% year-on-year in September, hitting a new high in the past six years.

In September, CPI increased by 3.0% year-on-year, hitting a new high in the past six years. In August 2019, the total retail sales of consumer goods was 3,389.6 billion yuan, a nominal increase of 7.5% year-on-year (an actual increase of 5.6% after deducting price factors). Among them, the retail sales of consumer goods other than automobiles were 3.0845 billion yuan, an increase of 9.3%.

Investment advisory comments: CPI increased by 3% in September, a new high in recent years. Benefiting from the rise in CPI, the growth rate of must-have consumption is good. Investors can pay attention to food, grain, oil, daily necessities, etc. At the same time, the core profits of leading supermarkets are expected to improve, and investors can also continue to pay attention.

(Investment consultant Zeng Zilei registered investment consultant certificate number: S0260613090015)