Paipai net launches an investigation into domestic private placement agencies. The survey results show that 78.35% of private placement funds believe that the stock market reversal lacks catalyst, the current rise is a phased rebound, while 21.65% of private placement funds express difficulty in judgement. In addition, on how to look at the market for the remaining two months of this year, and what investment opportunities to look forward to, Paipai Net also interviewed Guo Weiwen, senior strategist of giant capital, Li Que, manager of Youju Capital Fund, Ma Cheng, chairman of Juze Investment, Junmao Capital Partner Qiu Xiaoguang, and Huang Jia, Qianbo asset researcher.

Is A-shares just experiencing a limit rebound or a totally reversing?

Li Qiao, fund manager of Juyou Capital, said the direction of the current market evolution is very critical. On the whole, the bottom phenomenon is very significant in current market, including creating new low of index and continuous low turnover and so on, a large-scale bottom characteristics, once the market continues to weaken, it is likely to form a seasonal K line of "four consecutive shades". Once the "four successive shades" of the seasonal K line are formed, there will be a multi-lateral resonance of "strong stock decline", "policy turn" and "industrial capital increase", which will easily form a bottom.

Guo Weiwen, a senior strategist at Jufeng Capital, said: regarding the current market, the technical conditions for a rebound have been established, so far, the conditions for a rebound to evolve into a reverse market are still not available. From the valuation point of view, although the current market is at the bottom of the valuation level, but compared with the previous low is still a little higher. Fundamentally, the development of China-US trade frictions is still deteriorating, the domestic economy is still under pressure and monetary policy has not been significantly relaxed. In this case, there is also a lack of catalyst for market reversal in terms of profit growth and liquidity.

Huang Jia, Qianbo asset researcher, considered the rise before the National Day as a periodic rebound. The main factors of this rebound include the continuous fall of domestic reform policies, especially tax cuts and fee cuts, which can not only improve the performance of listed companies, but also be conducive to the recovery of manufacturing industry and investor confidence. September and October were the smaller months of the year-round lifting of the ban on selling stocks. The pressure on the market to lift the ban was reduced, and the long-suppressed enthusiasm for investment launched a counter-offensive. In September, the A share "entering the FTSE" will introduce more international funds for A shares, highlighting the current value of A shares.

Ma Cheng, Ju Ze investment chairman, said that before the National Day, index climbed steadily, for the stage rebound to consolidate the foundation, but it still need to confirm the volume of transactions to get the reversal.

Qiu Xiaoguang, a partner of Junmao Capital: from the recent market point of view, many negative factors have been reacted in the extremely pessimistic market, in the near future without more negative factors, the market pessimism began to enter a period of recovery. The market is in a position to reverse. Whether macro-economy can stabilise and rebound continuously in the fourth quarter, and whether the policy adjustment can exceed the expectation are essential for successful reversals in the future.

What investment opportunities will be available in October?

Li Qiao believes that the market is still at the bottom region. From certainty point of view, we can focus on capital-rich commercial banks and leading real estate; from perspective of reverse investment, we can focus on the market concentration of high-quality brokerages, affected by the trade war 5G; from thematic point of view, we can focus on the reform of state-owned enterprises, military and civil finance; from growth point of view, we can focus on cloud computing, semiconductor and risk release more fully large consumption.

Guo Weiwen believes that the rebound in the process of each sector will exist, and the overall range will not be too different. In September, the performance of blue chips and weighted stocks were relatively strong. In October, it was suggested that more attention should be paid to the supplementary opportunities of small cap shares.

Huang Jia believes it is "the value of the platform, growth singing opera" market. Optimistic about the big financial sector led by banks and insurance. Oil prices remain high, the petrochemical oil service industry profits improved, is in the industry boom cycle, can continue to be bullish. In October, the theme of speculation has always been high enthusiasm, military industry, 5G, cloud computing, Internet of Things and other science and technology sectors are expected to undertake the big financial sector to make major rebound.

Ma Cheng believes that the overall valuation of the market is at a historic low, and the mid-term is at a historic bottom. A shares do have value investments, but looking at the prehistoric low, the stabilisation of the market has a broad policy and liquidity drive. In the light of recent policy analysis, Juze Investment will start from these directions and look forward to benefiting from tax relief to promote consumption of consumer stocks, favourable policy infrastructure, undervalued financial stocks, and the upcoming commercial 5G technology stocks.

Given that the market has rebounded sharply for some time, taking into account the balance of risk and return, Junmao Capital thinks bullish sector in October are concentrated on low-valued, high-dividend blue-chip stocks, like banks, insurance, food and beverage companies. Maintains a high degree of concern for some sectors that are likely to be on the upstream in the future, such as the oil and gas industry and oil service sector. Keep a close track of the electronic and information sectors that have not shown a particular performance in the recent market rebound.

copyright by fangquant.com