Hexun Investment Advisor Yang Lihua: The market-wide rally has clearly shifted to a stronger trend. In which direction are the opportunities evolving?

Friends, hello everyone. The market has closed. Today the overall market still showed a relatively strong performance. Although it’s still a bit weaker than the strong reversal-backs that we’ve been talking about, overall it’s been much stronger than in the past. Everyone can see that the volume and momentum have not shrunk. The number of advancing stocks is basically showing an across-the-board uptrend. According to Yang Lihua, an analyst at Hexun Investment Advisory, if we look at it that way, the whole market has returned to a process of range-bound consolidation and repair in this stage. The entire board is also very good—almost all sectors are up.

From the characteristics, there are two points worth everyone’s attention. One is that the start of the rally is gravitating toward innovative drugs, becoming related to pharma rather than what many people consistently expected—that technology stocks would surge broadly across the board. Instead, innovative drugs have moved to the front, including chemical pharmaceutical companies and biological products. And also, as we see, traditional Chinese medicine has begun to be active. This shows that although market sentiment is warming up, many funds still don’t want to chase at higher prices for those low-position stocks. That’s still a feature of the moment.

Also, everyone has noticed that in the earlier period, many people’s consensus—such as energy, electric power, and new energy—showed signs of beginning to pull back. This indicates that the market’s pricing for external factors that were mainly dominated by energy in the prior period is starting to fade.

Overall, friends, we can make such a small judgment: even though the whole market is broadly rising, the collective force of capital is not strong. Two directions are likely to emerge. One is that the “strong keep getting stronger” trend in areas with relatively good performance is still continuing for some. The other is that people are beginning to pay attention to some low-position defensive plays; innovative drugs might, in the future, evolve toward some consumer-related themes.

（责任编辑：王刚 HF004）

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