Chinese securities brokerage companies are widely holding optimistic attitude toward performance of China's stock market in the fourth quarter of 2015 in consideration of warming sentiment, ample liquidity and reasonable stock prices after previous rounds of sharp retreats.
Many brokers deem that the country's 13th Five-Year (2016-2020) development plan will trigger significant investment opportunities for listed companies that will benefit from the plan.
However, the market is inevitable to keep swings in the short term as it is still facing sell-off pressure from investors whose shares were locked at a high bargain in the previous round of market bull run and also expectation for the Federal Reserves' interest rate rise toward the end of the year.
Sinolink Securities (600109.SH) believes that the market environment is relatively warm at present as the supporting factors that may inject impetus into the market still exist; over two trillion yuan worth of illicit stock trade positions have been cleared up while the margin trade turnover inside the market has fallen to some 1.3 trillion yuan; major shareholders and senior officials are banned to underweight their holdings through the secondary market; limitation is adopted for account opening in stock index futures trading and new share offering is suspended.
The broker recommends investors grasp structured opportunities on the market. Haitong Securities (600837.SH) thinks that the market is expected to keep relatively strong momentum as the yearend looms and investment institutions, such as fund management companies and insurance companies, are striving to fatten their full-year investment yields by pulling up stock prices at the end of the year.
Bluechips recorded short term upbeats at the last few months of the previous two years, it added. But Zhang Yidong, chief strategic analyst with Industrial Securities (601377.SH), is quite cautious about the future performance of the stock market due to several uncertainties at the end of the year such as the market expectation for the Fed to raise interest rate in the middle of December.
The market is expected to continue under pressure if there is no good news that may lure massive amount of additional capitals flowing into the market. Zhang suggests investors pay attention to thematic trading opportunities.
By stock blocks, a majority of the stockbrokers have reached consensus that the part of the stocks has seen their prices back to a reasonable level and stocks related to China's 13th Five-Year Plan and second-child policy concepts are expected to wage a fresh round of investment tide on the market.
Guotai Junan Securities (601211.SH) recommends four stock blocks: stockbroker block, new energy vehicles block, health and medical care block and media block.
By concept, stocks related to the 13th Five-Year Plan and China stepping up practice of the "Going Out" strategy are expected to enjoy most beneficiaries.
For investment strategy, Founder Securities (601901.SH) deems that investors should consider three main gauges when choosing an investment target, namely valuation, earning and catalytic factor. It recommends close attention to stocks in new energy vehicles, media and entertainment and pharmaceutical sectors.
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