It is learnt by Shanghai Securities News (SSN) that recently many large securities companies saw net inflow of margins from clients. At the same time, daily average turnover of Shanghai and Shenzhen stock exchanges increased, balance of financing continued to pick up, and capitals continued to buy capitals. All these signals implied that A-share market is getting active gradually now.
Summer has passed and the temperature cools down, but passion of investing in A-share market is heating gradually.
As SSE Composite Index stayed at 3,300 points and stocks related to several hot topics showed good performance, investors are increasingly passionate. The SSN reporter learnt that many large securities companies saw net inflow of margins from clients, reflecting that investors are growingly confident about the future of the market.
At the same time, daily average turnover of Shanghai and Shenzhen stock exchanges increased, balance of financing continued to pick up, and capitals continued to buy capitals. All these signals implied that A-share market is getting active gradually now. Analysts pointed out that Anchorunder the background with stable liquidity on the whole, the market is expected to move up amid fluctuation and additional capitals will be key to the future development.
Many securities companies saw net inflow of margins from clients
Although insurance funds don’t disclose change in securities margins every week anymore, SSN reporter knew that many securities companies saw net inflow of margins from clients since the second half of August, which was an epitome of overall market condition to some extent.
According to statistics from a medium-sized securities company in Shenzhen, the company enjoyed net inflow of clients’ margins longer than net outflow since late August, leading to a net inflow of 650 million yuan.
Noticeably, SSE Composite Index standing at a key position significantly boosted market sentiment. The company saw a net inflow of margins worth 400 million yuan on August 28, which was the second day after SSE Composite Index exceeded 3,300 points and also the day when the company gained the highest net inflow of margins recently.
A large securities company in Shenzhen witnessed a net inflow of 37 million yuan of margins since late August. The net inflow of margins recorded 1.055 billion yuan on August 29, but net outflow registered 726 million yuan and 466 million yuan on August 31 and September 1 respectively.
A head from flagship sales department of a large securities firm in Shenzhen told the reporter that margin inflow of the sales department was higher than outflow since late August, and the former was close to 40 million yuan on August 29.
On the other hand, statistics from brokerage business department of a listed securities firm in Shanghai showed that the number of new accounts climbed up drastically by 40 percent last month than that in July.
Turnover and balance of financing pick up stably
While SSE Composite Index rose to a key point, many hot topics like sub-new stocks, artificial intelligence (AI) and concept stocks related to Apple performed well successively. With money-making effect turning better, many indicators of capital supply of Shanghai and Shenzhen stock exchanges were improved.
Turnover of the two bourses in Shanghai and Shenzhen reached about 646.4 billion yuan yesterday, an increase of over 5 billion yuan from the previous trading day. Specifically, turnover of Shenzhen Stock Exchange recorded 350.1 billion yuan, hitting the highest single-day turnover over past four months and only second to the turnover on April 11 since the beginning of this year.
Besides, daily turnover of the two markets was more than 590 billion yuan last week, up by over 30 percent from the previous week. But it posted about 510 billion yuan in the whole August, which hiked by 5.5 percent from a year earlier and 10.2 percent when compared with that in July.
Balance of financing, which represents high risk preference, picked up for six weeks consecutively. As of September 1, balance of financing at the two stock exchanges was 942.9 billion yuan, which set a new high record since this year and increased by nearly 70 billion yuan, or over 70 percent, when compared with that at late July. This indicated that risk preference was recovered continuously.
According to statistics from Choice, an information service provider owned by Eastmoney.com, balance of financing of all industries except medical biology, light manufacturing and machinery equipment fell, while that of the remaining 25 industries increased by different extent. Specifically, balance of financing of nonferrous metal industry surged by 14.3 billion yuan, ranking the top among all industries, and net buying amount of non-bank finance, chemistry, banks and other industries exceeded 4 billion yuan.
Additional capitals are key to future market trend
How far will the SSE Composite Index go after reaching 3,300 points? Many interviewees indicated that under the background with economic data beating expectation, improvement in overall profitability of listed companies and liquidity getting stable, the market is expected to move up amid fluctuation and additional capitals will be key to the future development.
Wang Sheng, chief strategic analyst from Shenwan Hongyuan Securities, predicted that there won’t be big change in liquidity environment recently, which may last till November.
In his opinion, the biggest variable in the second half of the year lies in the US dollar index. If the US dollar index rebounded significantly, it may cause capitals which flew to emerging markets to flow back. Change in the external environment, which is relatively loose, will take place by that time. But Wang also said that investors need to pay attention to the implementation process of policy of financial deleverage, and the latter will influence domestic liquidity environment.
Strategy team of Essence Securities made the same prediction. The central bank’s open market operation will continue to keep stable. In addition to appreciation of RMB and increase of funds outstanding for foreign exchanges, liquidity environment is expected to see improvement in September and October and interest rate is predicted to maintain steady, which will help boost the stock markets.
Attention should be paid to the fact that the market situation may change from fight of existing capitals to additional capitals investing in stock market, said Xu Biao, analyst from TF Securities. He added that he noticed more capitals with absolute benefits flowing into the market, but this trend remains to be confirmed.
(By Vanessa)
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