20180809-中国银河国际证券-China_Galaxy_A-Share_Morning_Comments晨会纪要4页_330kb

报告摘要

China Galaxy A-Share Morning Comments Summary (August 9, 2018)

Core Content

The A-share market experienced a mixed performance on August 9, 2018, with both the Shanghai Composite (SHCOMP) and Shenzhen Composite (SZSE Comp) opening lower and continuing to decline throughout the day. The ChiNext index was notably affected, falling by nearly 2%, which dampened overall market sentiment. Despite this, certain sectors showed resilience, particularly resource-related industries such as petroleum, petrochemical, cement, and iron & steel, which benefited from rising oil prices and government policy support for infrastructure investment.

Main Market Trends

Market Sentiment: Weak trading volume and sentiment contributed to the market's failure to rebound strongly. The market is expected to remain volatile as sentiment recovers.
Sector Performance:
- Resource Plays: Strong performance due to oil price rally and reforms in the oil & gas sector. Notable stocks included Xinjiang Haoyuan Gas (002700.CH), Sinopec Oilfield Equipment (000852.CH), and Anhui Liuguo Chemical (600470.CH).
- Infrastructure Sectors: Cement, building materials, and iron & steel sectors saw robust gains following the announcement of increased infrastructure investment.
- Financial Stocks: Suffered a correction, dragging down the broader market.
- Consumer and Pharmaceutical Sectors: Experienced a decline, indicating a potential end to the correction phase.
- Technology Sector: The ChiNext index was heavily impacted, with electronic components and other tech-related stocks underperforming.

Key Indices Performance

Index	Close (pts)	Change (pts)	% Chg
SHCOMP	2,744.1	-35.3	-1.27%
SZSE Comp	8,499.2	-174.8	-2.02%
CSI 300	3,314.5	-54.4	-1.61%
ChiNext	1,447.8	-31.7	-2.14%
HSI	28,359.1	+110.3	+0.39%
HSCEI	10,901.2	+35.1	+0.32%

Reports and Analysis

Macro Outlook

China's exports rose 12.2% YoY in July, exceeding market expectations.
Imports surged 27.3% YoY, indicating strong domestic demand.
The trade surplus decreased to USD 28.05 billion, suggesting a potential downward pressure on the RMB.
The government may continue reforms to boost domestic demand and stabilize growth.

IPP (Industry and Power)

The electricity market is opening up, increasing direct distribution.
Companies with lower power generation costs are expected to gain competitive advantages.
Recommended stocks include:
- Thermal Power: Huadian Power International (600027.CH), Huaneng Power International (600011.CH), Fujian Funeng (600483.CH), Baolihua New Energy (000690.CH), An Hui Wenergy (000543.CH)
- Hydropower: China Yangtze Power (600900.CH), Sichuan Chuantou Energy (600674.CH), Guizhou Qianyuan Power (002039.CH), SDIC Power Holdings (600886.CH)

Property Sector

The Politburo Meeting emphasized stricter property controls to curb home prices.
The sector is at a historical valuation low but may face further pressure from policy and fundamentals.
Recommended stocks: China Vanke (000002.CH), Poly Real Estate (600048.CH), Future Land Holdings (601155.CH), Zhongnan Construction Group (000961.CH)

Strategy Reports

H2 2018 Outlook: Focus on identifying stocks with attractive value and growth potential.
Consumer Sector: Expected to benefit from policy support and strong demand.
Market Preference: Shift in investor preference and public funds' asset allocation.
CDR (China Depository Receipts): Details announced, with 10 brokers appointed as sponsors for innovative companies' domestic listings.

Disclaimer and Risk Statement

The document is issued by China Galaxy International Securities to institutional clients.
Information is based on reliable sources but not guaranteed for accuracy.
No personal investment recommendation is made; all analysis is for general reference.
The recipient must understand the investment objectives and risks, and consult independent financial advisers if necessary.

Disclosure of Interests

China Galaxy International may have financial interests in the companies discussed.
Certain directors, officers, and employees may be associated with the mentioned companies.
The firm may have participated in financing transactions, provided investment advice, or received compensation from the subject companies.