In the past year, A-shares ranked among the top in the world's major indexes. The number of IPOs and financing volume reached new highs in recent years. Pilots of science and technology innovation boards and registration systems have appeared one after another, and the process of capital market opening has accelerated significantly.
The growth rate is at the forefront of major global indexes, the number of IPOs, and the amount of financing have reached new highs in recent years. Science and technology innovation boards and registration system pilots have successively appeared. The process of capital market opening has accelerated significantly. An unusual year.
When the Shanghai Composite Index closed at 2493.90 points on the last trading day of 2018, the market's expectations for the new year of A-shares were difficult to be optimistic. In the first week of 2019, the Shanghai Composite Index fell to 2440.91 points. However, after the last trading day in 2019, the Shanghai Composite Index successfully closed at 3,000 points with a positive line, and A shares could finally tell investors that they did not fall back again.
Index performance is bright, investors get a sense of geometry?
The Shanghai Stock Index rose 21.89%, the Shenzhen Stock Exchange Index rose 44.08%, the small and medium-sized board index rose 39.70%, and the GEM index rose 43.16% ... In 2019, A-shares ranked first among the major global indexes. Behind the dazzling index performance, how do investors feel?
"In 2019, we did not outperform the broader market, and the income was probably close to 20%." For more than 10 years, Yu Donglin, from Yantai, Shandong, has been a self-employed small-scale retail investor. "Compared to those stock gods who can achieve 'a small goal' at any time, my achievements are really unattainable. But for me, 2019 is indeed a year of harvest, and it is a step further from the solution. . "
Beijing white-collar Yang Wei, who has just started paying attention to the A-share market, posted his first report card in the circle of friends two days ago. "Do not make no money." Yang Wei felt that for "little white" in and out of the stock market, such results are acceptable. "Without paying too much tuition and accumulating a lot of experience, the new year should be more confident in operation."
In 2019, the performance of the A-share market has picked up. Investors have their own profit and loss accounts, but their enthusiasm for the market is the same. Data show that as of December 30 last year, the turnover of the two cities during the year was 126.5 trillion yuan, an increase of 41% over 2018, and trading has become increasingly active. As of the end of November 2019, the number of natural person investors who had opened A-share accounts reached 159 million, an increase of 12.44 million compared with the end of 2018, a record high.
At the same time as the size of investors continues to expand, investment psychology is maturing. "In the past year, I only performed one or two operations when the market expected a major change, and most of the rest was just a look." On January 3, when Anqi, a shareholder from Henan, opened the securities app, he found that the client You need to re-enter your account password if you are not logged in. "It has been studied for a long time in the early stage, and it has been targeted at the long-term investment line, so it does not stare at the K-line every day."
Conceptual topics are new, will "storytelling" still be popular?
The A-share market never lacks stories. Investors have stories of investors, and listed companies also have stories of listed companies. In 2019, the market around the "story" has been one after another, "wonderful" constantly.
In 2019, the Shanghai Composite Index repeatedly hit the 3,000-point mark. In the context of continuous market upswing, breeding concept stocks, 5G concept stocks, industrial marijuana concept stocks, artificial meat concept stocks, and garbage classification concept stocks took turns. Until the end of the year, themes such as Internet concept stocks in the market continued to evolve.
However, some of these stories failed to continue due to lack of actual performance support. Take industrial cannabis concept stocks as an example. In early 2019, affected by news of the legalization of foreign industrial cannabis, A shares blew up the “industrial cannabis wind”, and a number of industrial cannabis concept stocks rose sharply. For a while, forty or fifty industrial marijuana concept stocks appeared in the A-share market, and many companies' stock prices doubled.
With the market frenzy, supervision has further tightened. In the "Notice on Strengthening the Control of Industrial Cannabis" issued by the National Narcotics Control Commission, provinces are required to strengthen the examination and approval of industrial cannabis licenses, and to re-examine the previously approved licenses to strictly regulate the industrial cannabis industry. Liu Yuejin, deputy director of the National Narcotics Control Commission and anti-terrorism commissioner of the Ministry of Public Security, said at a press conference of the State Council that China will tighten regulations on "industrial cannabis" on the premise that many countries have legalized cannabis. Subsequently, the marijuana concept stocks gradually went out, and many companies' stock prices retreated sharply.
Whatever comes should always come, what should always go. Without actual performance, no matter how good the story is, there is a day to finish. In the industry's opinion, investors in the A-share market are mainly retail investors, which provides the soil for some conceptual themes that lack performance support. However, with the development of supervision and the maturity of investors, the logic of storytelling will change, and the continuity will become shorter and shorter with the purely hype of the subject matter.
What changes will be brought about by the “buy, buy and buy” of foreign capital?
In 2019, the opening of China's capital market has accelerated significantly, and the degree of opening of A shares has also become higher and higher. In 2019, the supervisory authorities introduced a number of liberalization measures, including removing QFII and RQFII quota restrictions, optimizing and expanding the stock interconnectivity mechanism, and further expanding the opening of the securities and futures industry. The policy introduction has never been more intensive.
In December 2019, the People's Bank of China and the State Administration of Foreign Exchange drafted the "Regulations on the Administration of Domestic Securities Investment Funds by Foreign Institutional Investors (Draft for Solicitation of Comments)" to further facilitate the participation of foreign institutional investors in domestic securities investment and introduce more overseas long-term funds.
Under a series of opening-up actions, foreign investors entered the A-share market, and the enthusiasm for "buy, buy and buy" rose. In 2019, the international index compiling company MSCI increased the A-share inclusion factor three times to 20%, the FTSE Russell Index included A-shares, and S & P Dow Jones also included A-share listed companies in the S & P Emerging Markets Global Benchmark Index.
The data perfectly illustrates the popularity of the A-share market. Data from Shanghai-Hong Kong Stock Connect shows that in 2019, the cumulative net inflow of funds through the interconnection mechanism reached 351.743 billion yuan, a record high, and at the end of the year, continuous net inflows were achieved for 30 consecutive trading days. According to data released by the central bank, the total market value of foreign-owned shares in the first three quarters of 2019 was 1.77 trillion yuan, a 38% increase year-on-year.
Many institutions and experts believe that the further opening of A shares will bring more development opportunities to the market. At the same time, the pursuit of blue chip stocks by foreign capital and the concept of value investment will also affect domestic investors and institutions, driving a change in investment concepts.
Our reporter Beimengyuan