In the past three months, the Nasdaq China Golden Dragon Index has rebounded sharply and performed well among the world's major stock indexes. What is the main reason behind this?
(1) In the short term, the release of risk factors that interfered with valuation levels in the early stages and the promotion of favorable policies recently are the main reasons for the restoration of market sentiment. The optimization of epidemic prevention and control measures, the implementation of policies to expand domestic demand, loose monetary policy and aggressive fiscal policy all had strong stimulatory effects on the consumer market and capital markets. This was the main reason supporting the surge. At the same time, the US Audit Bureau's review results were favorable, the Fed's interest rate hike was marginal slowdown, and signs of relaxation in global liquidity were all positive signs for US stocks.
(2) In the long run, the economy is likely to be a tortuous and upward recovery process after the epidemic is released. Investment opportunities will attract capital inflows, drive economic growth and asset prices to rise, which in turn will attract more capital inflows, and China's assets will resume their upward trend.
2. Despite the current strong rebound in China Securities, it is still at a relatively low level. How do you view the trend after China Securities? Which industry sectors are you optimistic about?
China Securities is probably a volatile upward process. The future rebound could capture some main sectors and companies with solid fundamentals and a good business model and competitive pattern.
3. In the past three months, among major Chinese securities firms, Bilibili has risen nearly 100%, and Pinduoduo, Kuaishou, Alibaba, etc. have also rebounded by around 50%. How do you evaluate this round of rebound dominated by internet platform companies?
(1) The early valuation period was at the bottom of history, and improved sentiment and liquidity pushed stock prices to rebound;...