Learn from Israelis, Do Global Business

Weekly Thoughts

The A-share market is undergoing a period of oscillation and consolidation. High-flying tech stocks have corrected significantly due to the supply cutoff to Huawei, while the military industry has hit new highs due to external instability factors, internal refitting, and stable performance. This is the consequence of first-level thinking by the masses. Once the momentum is formed, no person or event can stop the general trend of a country’s development. Therefore, for long-term investors, going long on China is the only correct choice. And going long on China means going long on the new forces representing China’s future. The seven major new infrastructures: 5G base station construction, UHV, intercity high-speed railway and urban rail transit, new energy vehicle charging piles, big data centers, artificial intelligence, and industrial internet are the top priorities, and semiconductors behind the new infrastructure are the top priority of the top priorities. For semiconductor industry research, you can refer to the Panoramic Analysis of the Semiconductor Industry Chain produced by Market Value Wind.

Weekly Events

Following Huawei, TikTok has been sanctioned, and there is WeChat behind it. Who will be after WeChat is unknown. Every entrepreneur should seriously consider what Huawei’s Yu Chengdong said: most Chinese internet companies are lying in the comfort zone of the big Chinese market and should go to earn money globally. Coincidentally, the Israeli Embassy in China held a China-Israel agricultural technology enterprise matchmaking meeting this week. Israeli entrepreneurs were promoting their products to Chinese customers in fluent English. At that time, I thought that our Chinese enterprises should work hard. When we complain about difficult business every day, Israelis, with almost zero domestic market, still rely on innovation and strive to do global business. A small company of a dozen people can sell products to dozens of countries, which is impressive.

Weekly Market

Period: 2020803-20200809

Shanghai Stock Connect had a net outflow for four consecutive weeks, and Shenzhen Stock Connect had a net inflow for two consecutive weeks.

Hot Industry Concepts

From the perspective of Wind Level 4 industries, real estate, national defense and military industry, system software, precious metals and ores led the gains, while beer, hotels and resorts, and healthcare led the declines. This week, the continuous board index, aero engines, satellite internet, and large aircraft led the gains, while aquatic products, animal vaccines, high-priced stocks, and Micro LED led the declines.

Market (%)	Index	This Week	1 Week Ago	2 Weeks Ago	3 Weeks Ago
SSE Composite Index	3354.04	1.33	3.54	-0.54	-5
SZSE Component Index	13648.5	0.08	5.43	-1.37	-4.07
ChiNext Index	2749.95	-1.63	6.38	-1.3	-4.18
Hang Seng Index	24531.62	-0.26	-0.45	-1.53	-2.48
HSCEI	993.76	1.11	0.06	-1.59	2.82
Red Chip Index	4013.77	0.05	1.38	-2.07	-4.76
Dow Jones	27433.48	3.8	-0.16	-0.76	2.29
Nasdaq	11010.98	2.47	3.69	-1.33	-1.08
S&P 500	3351.28	2.45	1.73	-0.28	1.25

Shanghai-Shenzhen-Hong Kong Stock Connect

Market (CNY, Billion)	This Week	Previous Week	2 Weeks Ago	3 Weeks Ago
Shanghai Stock Connect	-44.76	-115.24	-156.05	-51.01
Shenzhen Stock Connect	0.26	72.67	-91.43	-140.15
Hong Kong Stock Connect	74.24	25.23	139.13	154.41

Positions

Type	Code	Name	Movement
Stock	SZ000880	Weichai Heavy Machinery	Hold
Stock	SNSS	SNSS	Buy
Fund	F210008	Golden Eagle Strategy Allocation Mixed	Hold
Fund	F163115	Shenwan Lingxin CSI Military Industry Index	Hold
Fund	F260104	Invesco Great Wall Domestic Demand Growth Mixed	Hold
Fund	F000566	Huatai-PineBridge Innovation Upgrade	Hold
Fund	F320022	Lion Fund Research Selected Stock	Hold
Fund	F001692	Southern National Policy Power Stock	Hold
Fund	F163415	Xingquan Commercial Front-end Fee	Hold
Fund	F519674	Galaxy Innovation Growth Mixed	Hold
Infrastructure	F002446	GF Lixin Flexible Allocation Mixed	Buy