Starting Point of Slow Bull
Weekly Thoughts
On July 30, nearly half a month after the release of economic data for the first half of the year, the Political Bureau of the CPC Central Committee held a meeting. Xinhua News Agency today gave an interpretation of the meeting “First Observation | What profound meanings did this informative Political Bureau meeting reveal”. CITIC Securities analysis pointed out that moving towards the second centenary goal as planned aims to stabilize external expectations and release a signal that China does not want major subversive changes in the international pattern.
The establishment of long-term goals sets the tone for stable development, and the whole society is no longer eager for quick success and instant benefits, and a slow bull can be expected. From now on, it is necessary to gradually establish a “socialist bull” market positioning, and seize the investment logic of making up for shortcomings and refining long boards. Use value investment methods to explore high-quality targets.
Weekly Events
Nongfu Spring passed the review and is about to be listed on H-shares. Hangzhou will give birth to a large number of billionaires again. In “Plastic Porter”, we have already said that Nongfu Spring is not a packaged water company, but a material trading company. Through raw material price band operation, hedging and other financial means, it obtains maximum benefits.
Weekly Market
Period: 2020720-20200726
The three major indices of A and H shares ended their two-day decline and began to rebound. The Chinese stock market began to gradually decouple from the US stock market and walked out of an independent market. Shanghai Stock Connect saw net outflows for three consecutive weeks, and Shenzhen Stock Connect ended net outflows for two consecutive weeks.
Hot Industry Concept Board
From the perspective of Wind Level 4 industries, system software, biotechnology, hotels, resorts, and precious metals were among the top gainers, while photography supplies, apparel retail, real estate services, and oil and gas drilling were among the top losers. This week, aquatic products, Tibet revitalization, and vaccines were among the top gainers, while north-south ship merger, propylene, polypropylene, and China FAW were among the top losers.
| Market (%) | Index | This Week | 1 Week Ago | 2 Weeks Ago | 3 Weeks Ago |
|---|---|---|---|---|---|
| Shanghai Composite | 3310.01 | 3.54 | -0.54 | -5 | 7.31 |
| Shenzhen Component | 13637.88 | 5.43 | -1.37 | -4.07 | 9.96 |
| ChiNext Index | 2795.4 | 6.38 | -1.3 | -4.18 | 12.83 |
| Hang Seng Index | 24595.35 | -0.45 | -1.53 | -2.48 | 1.4 |
| HSCEI | 982.9 | 0.06 | -1.59 | 2.82 | 3.22 |
| Red Chip Index | 4011.91 | 1.38 | -2.07 | -4.76 | 4.37 |
| Dow Jones | 26428.32 | -0.16 | -0.76 | 2.29 | 0.96 |
| Nasdaq | 10745.28 | 3.69 | -1.33 | -1.08 | 4.01 |
| S&P 500 | 3271.12 | 1.73 | -0.28 | 1.25 | 1.76 |
Shanghai-Shenzhen-Hong Kong Stock Connect
| Market (CNY, Billion) | This Week | Previous Week | 2 Weeks Ago | 3 Weeks Ago |
|---|---|---|---|---|
| Shanghai Connect | -115.24 | -156.05 | -51.01 | 137.32 |
| Shenzhen Connect | 72.67 | -91.43 | -140.15 | 144.76 |
| Hong Kong Connect | 25.23 | 139.13 | 154.41 | 292.06 |
Positions
Opened a position in Weichai Heavy Machinery this week. Weichai Heavy Machinery is a leading domestic ship power enterprise. Its performance and stock price have hovered at low levels for many years, mainly due to the stable development of the civil shipbuilding industry. Recently, two factors may bring about an increase in the prosperity of the ship power industry. First, the most serious floods since 2008 broke out in many places this year. Under the guidance of the policy of making up for shortcomings, localities are expected to increase the allocation of flood control vessels as standing disaster relief materials. Second, the impact of African swine fever, coupled with the impact of this year’s floods causing a reduction in feed corn production, meat prices will still hover at high levels, the residents’ dietary structure will be passively improved, and the demand for aquatic products will further increase, driving the prosperity of aquaculture and ocean fishing, which will in turn be transmitted to ship machinery, and Weichai Heavy Machinery will continue to benefit.
| Type | Code | Name | This Period Dynamic |
|---|---|---|---|
| Stock | SZ002241 | Goertek | Clear |
| Stock | SZ000880 | Weichai Heavy Machinery | Open Position |
| Stock | OEG | OEG | Clear |
| Stock | SNSS | SNSS | Open Position |
| Fund | F210008 | Golden Eagle Strategy Allocation Mixed | Increase |
| Fund | F001351 | Nuoan CSI 500 Index Enhanced | Clear |
| Fund | F163115 | Shenwan Lingxin CSI Military Industry Index | Clear |
| Fund | F270010 | Guangfa CSI 300 Index | Clear |
| Fund | F260104 | Invesco Great Wall Domestic Demand Growth Mixed | Increase |
| Fund | F000566 | Huatai-PineBridge Innovation Upgrade | Increase |
| Fund | F320022 | Nuoan Research Selected Stock | Increase |
| Fund | F001692 | Southern National Policy Power Stock | Increase |
| Fund | F163415 | Xingquan Commercial Front-end Load | Increase |
| Fund | F519674 | Galaxy Innovation Growth Mixed | Increase |
Published at: Aug 1, 2020 · Modified at: Dec 2, 2025
