Theme review on August 18 | Secondary new stocks continue to strengthen, One Belt, One Road, and environmental protection explode

Zhang Xin

2023/08/18 15:59

1. Market review

The market fluctuated and adjusted throughout the day, with all three major indexes falling more than 1% in the afternoon. New stocks and sub-new stocks broke out against the trend. NWeima and N Kaiweite both rose by more than 100%. Menguli went out of the three-day streak. C Xinyuren surged by more than 60% during the session. Many stocks such as Bixing Internet of Things, Cathay Environmental Protection, Guangge Technology, Jinyang Shares, Chuangchuan Electric, and Weinli Transmission reached their daily limit of 20cm. Environmental protection stocks fluctuated and strengthened. Construction Engineering restored its daily limit of 20CM, and TusEnvironment and Zhenghe Ecology were closed. One Belt and One Road concept stocks performed actively, with High-speed Railway Electric, Nankuang Mining Group, and China Railway Special Goods hitting their daily limit. On the downside, pharmaceutical and medical stocks fell across the board, with Saili Medical, Sailon Pharmaceuticals, and Tus-Holdings falling by the limit, while Wuzhou Medical, Shuyu Mining, Huaren Health, and Huakang Medical fell by more than 10%. Brokerage stocks fell back after rising, with Cinda Securities and Hualin Securities falling more than 7%. Individual stocks fell more than they rose. Nearly 4,000 stocks in the two cities were in the green, with a turnover of 744.7 billion yuan today.

2. Hot spots of the day

1. Sub-new stocks

New stocks surged today, with Changqing Technology having a five-game streak, Menguli having a three-game streak, and Bixing Wulian hitting the daily limit.

On the evening of August 17, as many as 30 A-share companies including Naxin Micro disclosed stock repurchase plans at the same time.

Zheshang Securities believes that the performance of new shares on the first day of listing is an important indicator of market sentiment. Generally speaking, the higher the first-day price increase of a new stock, the better the market sentiment. During the second quarter, the proportion of new stocks' closing prices on their first day of listing that were lower than their issuance prices was at a medium to high level, which means that market sentiment was at a low level. In other words, the performance of new stocks after their initial listing has been suppressed. As the summer market gets better, the near-end sub-new, which has continued to adjust due to low sentiment in the early stage, has ushered in the right-hand layout point.

2. Environmentally friendly

The environmental protection sector rose sharply today, with many stocks such as TusEnvironment and Beautiful Ecology rising by the daily limit.

According to the news, on August 17, Sun Jinlong, Secretary of the Party Committee of the Ministry of Ecology and Environment, presided over a meeting of the Party Committee of the Ministry. It is necessary to further strengthen the supervision of ecological protection and restoration, strengthen the evaluation of the effectiveness of ecological protection and restoration, in-depth implementation of major biodiversity protection projects, and do a good job in the construction of ecological civilization demonstrations.

Some analysts pointed out that the environmental protection industry is the "hardest hit area" for account arrears. Many environmental protection companies are troubled by huge "accounts receivable". The environmental protection sector is expected to benefit from the expectation of localized debt.

3. Belt and Road Initiative

The Belt and Road sector broke out today, with Haitong Development, Rainbow Group, Zhongte Railway and others rising by their daily limits.

According to the news, the 15th BRICS leaders’ meeting will be held in Johannesburg, South Africa from August 22 to 24.

GF Securities believes that most of the overseas construction projects participated by my country's central construction enterprises are located in Asia, the Middle East and Africa. With the changes in the domestic competition landscape, the "Belt and Road" has become a new battlefield for overseas competition between my country's central construction enterprises and international engineering companies. With the catalysis and promotion of “Belt and Road” related conferences, it is expected that the proportion of overseas orders and revenue of large-scale construction state-owned enterprises and international engineering companies will continue to increase.

Zhongtai Securities pointed out that in 2023, from the 7th China-South Asia Expo, the 15th BRICS Leaders’ Summit, and the 14th China-Northeast Asia Expo in August, to the 43rd ASEAN Summit, the G20 Summit, the Belt and Road Summit Forum, and the 20th China-Northeast Asia Expo in September. The ASEAN Expo, the Sixth China-Arab States Expo, and multiple Belt and Road-related summits and expos will be held one after another, covering topics such as energy, infrastructure, digital economy, green finance, etc., to promote in-depth and practical cooperation in related fields, and to promote the reheating of the "Belt and Road" initiative.

Risk warning and disclaimer

The market is risky and investment needs to be cautious. This article does not constitute personal investment advice, nor does it take into account the special investment objectives, financial situation or needs of individual users. Users should consider whether any opinions, views or conclusions contained in this article are appropriate to their particular circumstances. Invest accordingly and do so at your own risk.