60 billion in 8 days! Northbound funds are crazy about bargain hunting! "Three-character demon stocks" fell to the limit in batches

On January 13, the three major A-share indexes opened higher and moved higher, with the Shanghai Composite Index approaching 3,200 points. As of the close, the Shanghai Stock Exchange Index rose 1.01, the Shenzhen Component Index rose 1.19, and the ChiNext Index rose 1.41. The Shanghai Composite 50 Index rose by more than 1.5, hitting a new high since mid-August 2022.

On the market, financial stocks collectively strengthened, with Xiangcai shares rising by the daily limit, CITIC Construction Investment rising by more than 6 points, and New China Insurance rising by more than 5 points. Home appliances and home furnishing stocks fluctuated higher, with Beisong and Shitou Technology rising by more than 10%, while Ecovacs, Qumei Home Furnishing, etc. hit their daily limit. Medical device stocks rebounded, led by ophthalmology, with He's Eye Hospital rising by more than 10, Huaxia Ophthalmology and Opcon Vision rising by more than 7.

Digital economy concept stocks collectively adjusted, and Infineon fell to its limit. Some of the most popular stocks in the early stage fell sharply, with Guifaxiang, Black Sesame and Anner falling to their limit. Sectors such as State-owned Assets Cloud, Industrial Machinery, TOPCON Battery, and Xinchuang were among the top decliners. Overall, individual stocks rose more than they fell, with more than 2,800 stocks rising in the two cities, with a total transaction volume of 702.3 billion yuan today.

Northbound funds "crazy" bargain hunting

Mao Index rose more than 2%

Northbound funds continued to buy heavily in late trading today, with a net purchase of 133.36 throughout the day 100 million yuan, of which 6.305 billion yuan was purchased through Shanghai Stock Connect and 7.031 billion yuan was purchased through Shenzhen Stock Connect. So far, northbound funds have been net buying for 8 consecutive trading days, with the cumulative net buying exceeding 60 billion yuan.

Boosted by the substantial net buying of northbound funds, core assets continued to be shorted in late trading to boost the index. The Mao Index rose by 2.41, Stone Technology rose by 11, Ecovacs closed the market, and Tongce Medical Zhang more than 7, Aier Ophthalmology rose 6, "Waterproof Mao", "Soy Sauce Mao" and "You Mao" all rose more than 4, Kweichow Moutai rose nearly 3.

Consumer stocks performed outstandingly

One of the main targets of northbound funds to buy bottoms since the beginning of 2023 is consumer stocks.

In the context of a large-scale rise in the market today, the performance of liquor stocks is naturally not bad, but what is even more amazing is the beer stocks. Yanjing Beer, Chongqing Beer and Tsingtao Beer all rose by more than 5%.

Other consumer stocks also performed well. In the soft drink sector, Xiangpiaopiao hit the daily limit, while Dongpeng Beverage, Liziyuan, etc. rose by more than 5%.

In the home furnishings sector, Qumei Home Furnishing and Gold Medal Cabinets rose by the daily limit, while Zhibang Home Furnishing and Muse shares rose by more than 5%.

In the white home appliance sector, Martian, Bear Electric, etc. rose by more than 6. In the food sector, peach and plum bread was among the top gainers.

Peng Yanyan, head of consumer goods industry in Greater China at UBS, said on January 11 that China’s consumption growth will reach about 10% in the next two years. Peng Yanyan believes that with the recovery of consumption scenes, the catering, hotel, tourism and other service industries will usher in recovery in 2023. Compared with the liquor industry, Peng Yanyan is more optimistic about the development trend of the beer industry. She predicts that the sector will perform better after entering the peak beer consumption season in the second quarter of this year. Peng Yanyan believes that large-ticket durable consumer goods such as home appliances, furniture, and clothing have also been greatly affected in the past three years. As consumer confidence recovers, it is expected that these industries will see a significant recovery in the future.

The new energy track has a collective correction

The new energy track has a collective correction today, with the POE film sector leading the decline, photovoltaic inverters, energy storage, sodium-ion batteries, TOPcon batteries, etc. Sectors were among the top losers. As of the close, Xinleineng, Paineng Technology, etc. had fallen significantly, and Yuneng Technology, Enjie Shares, Goodwe, etc. were among the top decliners.

However, as the leader of new energy, CATL rose by more than 1 today, supporting the GEM to perform better than the main board.

CATL released a performance forecast last night, predicting that the net profit attributable to the parent company in 2022 will be 29.1 billion yuan to 31.5 billion yuan, a year-on-year increase of 82.66-97.72; the non-net profit attributable to the parent company will be 26.8 billion yuan to 29 billion yuan, A year-on-year increase of 99.37-115.74.

It is worth noting that in the first three quarters of 2022, CATL achieved a net profit of 17.6 billion yuan. Based on this calculation, it means that CATL’s net profit in the fourth quarter of last year reached 11.5 billion yuan to 13.9 billion yuan, and its single-quarter profit exceeded 10 billion yuan for the first time.

The "three-character demon stocks" have dropped to their limit in batches

The Spring Festival is approaching, and there is a strong desire to secure profit-making funds. This has also caused an interesting phenomenon in today's market: three-character stocks with names Many of the early big bull stocks have dropped their limits in batches, such as Guifaxiang, Anner, Quanjude, Maiquer, Black Sesame, Infineon, etc. Bunny, the "leading building materials stock", which had been hitting the daily limit in the early trading, once hit the daily limit in early trading and closed down by nearly 2.

Data show that today's net outflows of main funds from Infineon and Black Sesame were 721 million yuan and 592 million yuan respectively, ranking first and third in the two cities.