Which industries and individual stocks are favored by the market?
As the A-share market continues its upward momentum, margin trading balances have repeatedly reached new highs. According to the latest disclosed data, the margin trading balance reached 2.155 trillion yuan as of August 22, marking a 10-year high.
On August 25, A-shares maintained strong upward momentum, with the Shanghai Composite Index and Shenzhen Component Index hitting new highs, reaching peaks of 3,883.56 points and 12,477.97 points respectively. The ChiNext Index also performed well, climbing to a high of 2,782.01 points, while the STAR Market Composite Index also set a new record at 1,596.83 points.
From the beginning of August through the close on August 25, the Shanghai Composite Index, Shenzhen Component Index, ChiNext Index, and STAR Market Composite Index have cumulatively risen by 8.69%, 13%, 18.67%, and 18.83% respectively.
Behind the warm sentiment in A-share markets, margin trading balances have exceeded 2 trillion yuan for 14 consecutive trading days. Margin trading business features three key characteristics: leveraged trading, credit trading, and two-way trading. This capital demonstrates high market sensitivity and represents one of the main trading forces in the A-share market.
According to Wind data, the margin trading balance reached 2.155 trillion yuan as of August 22, hitting a new high since June 26, 2015. The margin trading balance as a proportion of A-share market capitalization stands at 2.32%, compared to approximately 4% when financing scale was comparable in 2015.
Margin trading business was officially launched in China on March 31, 2010. According to Wind data, margin trading balance peaked on June 18, 2015, at 2.27 trillion yuan, with the ratio reaching 4.27% of A-share market capitalization.
Regarding this development, Luo Zuanhui, Chief Analyst of Non-Bank Financials Research at Shenwan Hongyuan, believes that against the backdrop of this year's moderately accommodative monetary policy, "national team" support for equity markets, and increased equity allocation by medium and long-term funds, there remains room for further growth in margin trading balances.
Looking specifically at financing scale, the financing balance reached 2.14 trillion yuan as of August 22, representing 2.30% of market capitalization, with financing purchases amounting to 296.623 billion yuan and net purchases of 8.174 billion yuan.
The number of investors participating in margin trading has increased significantly. According to information disclosed by China Securities Data Co., Ltd., as of August 22, there were 7.5852 million individual investors and 49,994 institutional investors, with 558,800 investors participating in trading.
Compared to data as of August 1, when 387,700 investors participated in trading, the number of trading participants on August 22 increased by 44% compared to August 1.
The market's average maintenance guarantee ratio has also shown an upward trend. On August 22, the market's average maintenance guarantee ratio was 290.69%, compared to 277.2% on August 1. The maintenance guarantee ratio is a key indicator for measuring the safety of leveraged funds, with the warning line typically set at 140%. When the maintenance guarantee ratio falls below 140%, securities firms generally remind investors to pay attention to risks and may implement measures such as restricting certain transactions.
Since margin trading balances began exceeding 2 trillion yuan on August 5 through August 22, which industries and individual stocks have been favored by the market?
According to Wind data, as of August 22, among CITIC Level-1 industries, the electronics industry had the highest margin trading balance at 271.959 billion yuan. Six industries - computer, non-bank financial, pharmaceutical and biological, power equipment, machinery, and automotive - had margin trading balances exceeding 100 billion yuan.
During the period from August 5 to August 22, the electronics industry also had the highest net financing purchases, with net inflows of 43.08 billion yuan. The computer, machinery, telecommunications, and power equipment industries had net financing purchases between 10-20 billion yuan. In contrast, only the coal industry experienced net financing outflows, with outflows of 1.375 billion yuan.
In terms of individual stocks, as of August 22, East Money Information Co.,Ltd. (300059.SZ) and Ping An Insurance (Group) Company Of China, Ltd. (601318.SH) had margin trading balances exceeding 20 billion yuan. Kweichow Moutai Co.,Ltd. (600519.SH), Byd Company Limited (002594.SZ), Citic Securities Company Limited (600030.SH), Anhui Jianghuai Automobile Group Corp.,Ltd. (600418.SH), China Yangtze Power Co.,Ltd. (600900.SH), and Semiconductor Manufacturing International Corporation (688981.SH) had margin trading balances between 10-18 billion yuan.
During the period from August 5 to August 22, five stocks had net financing purchases exceeding 2 billion yuan: Cambricon Technologies Corporation Limited (688256.SH), Semiconductor Manufacturing International Corporation (688981.SH), China Northern Rare Earth(Group)High-Tech Co.,Ltd. (600111.SH), Eoptolink Technology Inc.,Ltd. (300502.SZ), and Hygon Information Technology Co.,Ltd. (688041.SH). Among these, Cambricon Technologies Corporation Limited rose 80.42% during this period, Eoptolink Technology Inc.,Ltd. gained 48.41%, while China Northern Rare Earth(Group)High-Tech Co.,Ltd. and Hygon Information Technology Co.,Ltd. both posted gains exceeding 30%.
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