Central Bank Cuts Rates by 50 Basis Points, Boosting A-Shares.
Here is the translation of the provided text into English: "The performance of leading companies is the most stable, with the US stock market at 40,000 points and India at 80,000 points.
Ordinary people only see one side of the picture, but they don't know what the constituent stocks behind these indices are.
India's 80,000 points are only composed of 30 leading constituent stocks, while the Dow Jones is made up of 30 well-known industrial company stocks.
In contrast, our CSI 300 consists of 300 companies.
In the semi-annual reports, it can be seen that the performance of leading companies in various industries is very stable, not afraid of the United States making trouble, nor affected by the cycle.
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On the contrary, the more crisis, the more difficult the economy, the stronger the mergers and acquisitions of leading companies become.
Of course, some industries are not doing well, which is a problem of the entire industry.
At this time, it is necessary to look for leaders to replace this industry, and if there is no alternative to this industry, then look for the last integrated leader.
It is necessary to change the mindset.
There will also be speculation on themes, but the difficulty will be relatively high.
Growth leaders are relatively stable, and they do rise slowly, but for large funds, what they want is stability, and the global stock market has such a demand.
At present, A-shares are transforming, moving from the past speculation on garbage to value growth, which indicates that the current leading market may have just begun.
With continuous interest rate cuts, large funds will lay out stable leaders in the future.
This will help the market index to strengthen.
Times have changed!
In the past, the main support was the main, now it is to be strong, with more than 5,000 listed companies, it is difficult to maintain that all companies can rise, which is unrealistic and not conducive to the strong and large leading companies to go to the world's route.
On the evening of August 28, CITIC Securities released the semi-annual report for 2024, with operating income of 30.183 billion yuan during the reporting period, a decrease of 4.18% year-on-year; net profit of 10.57 billion yuan, a decrease of 6.51% year-on-year.
As of the end of the report, CITIC Securities' total assets were 1.50 trillion yuan, an increase of 2.87% from the total assets of 1.45 trillion yuan at the end of 2023.
On August 8, Kweichow Moutai released the semi-annual report for 2024, achieving a total operating income of 83.451 billion yuan, a year-on-year increase of 17.56%, exceeding the annual target growth rate; net profit attributable to the parent company of 41.696 billion yuan, a year-on-year increase of 15.88%; net cash flow from operating activities of 36.622 billion yuan, a year-on-year increase of 20.52%; the "iMoutai" digital marketing platform achieved a non-tax revenue of 10.25 billion yuan for liquor, a year-on-year increase of 9.76%; the series of wine revenue was 13.147 billion yuan, a year-on-year increase of 30.51%, accounting for 16.09% of the same period Kweichow Moutai's revenue, setting a historical high.
China National Petroleum Corporation: a net profit of 88.6 billion yuan in the first half of 2024, a year-on-year increase of 3.91%, and a proposed dividend of 2.2 yuan for every 10 shares.
China National Petroleum and Chemical Corporation achieved a total operating income of 1.58 trillion yuan in the first half of the year, and a net profit of 35.7 billion yuan, a year-on-year increase of 1.7%.
Ping An Insurance (Group) Co., Ltd.: In the first half of the year, the net profit attributable to the shareholders of the parent company was 74.619 billion yuan, a year-on-year increase of 6.8%.
As of the end of June 2024, the group's total assets exceeded 12 trillion yuan, nearly 12.23 trillion yuan.
Another interest rate cut of 50 basis points is expected to bring large funds into the stock market.
Before that, on July 25, the four major banks of ICBC, Agricultural Bank, CCB, and BOC reduced the deposit interest rates!
The annual interest rate for demand deposits was reduced from 0.2% to 0.15%, a decrease of 5 basis points.
The interest rates for fixed deposits with a maturity of three months, half a year, and one year were all reduced by 10 basis points, and the adjusted rates are 1.05%, 1.25%, and 1.35% respectively; the interest rates for two-year, three-year, and five-year terms were reduced by 20 basis points, and the adjusted rates are 1.45%, 1.75%, and 1.8% respectively.
The interest rates for fixed deposits with a maturity of zero, zero, and interest-bearing deposits were reduced by 10 basis points, and the listed interest rates for notice deposits were reduced by 10 basis points.
Next, under the new round of interest rate cuts by the Federal Reserve, central banks of various countries generally follow suit.
If our country's central bank follows suit again and cuts interest rates by another 50 basis points, it will be able to ignite funds into the stock market.
And these conservative large funds will not speculate wildly, but will rush into ETF funds led by leaders, driving the rise of leading stocks.
Ten years ago, the highest yield of government bonds was 4.6%, and the yield of 5% guaranteed principal financial management was everywhere.
Ten years later, the yield of government bonds has fallen to the lowest 2.2%, and financial management with a yield of 3% has become a scarce asset.
In the future, the global interest rate can be even lower, even reaching a zero interest rate.
Since the collapse of the Bretton Woods system, that is, the gold standard + dollar standard, central banks of various countries have been in a long-term loose state, and the intensity of loosening is different.
The global interest rate level, as long as it is not a small country's currency, is basically dominated by low interest rates.
Small country currencies are depreciated too fiercely, and even the principal cannot be guaranteed, so the interest rate is higher.
New energy rises, and the index can rise sharply.
If only leading stocks rise, the index is generally stable at the beginning.
But in the medium term, especially at present, as long as the index rises, it will be found that the rise is driven by the rise of new energy.
Global electrification is the current trend of the world economy.
The development of electrification in the West is affected by economic space, and now the transformation and development are relatively slow.
However, our country has a large space, a huge economic space, and the transformation and upgrading are very fast, thereby achieving a faster transformation speed.
Indian car giants have started to develop new energy vehicles in the past two days, and have even chosen to buy batteries from China.
China and India are both populous countries and land-rich countries.
For the entire Asia-Pacific and the Middle East, and even Africa, it is in the urbanization development cycle.
Such an environment is very beneficial to the development of our country's electrification industry.
Although there are occasional troubles in the United States, the trend is here, and basically no one can stop in front of the trend."
Please note that some terms may have cultural or regional nuances that are difficult to translate precisely, and the translation provided aims to convey the general meaning of the original text.
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