bodyscratch| Great Wall Fund: In the first week of May, it rose!

Hey, let's take a look at the market this week!

Market weekly review

Here it comes. It's really...BodyscratchIt's coming! Just this afternoon, the Shanghai Composite Index suddenly made a force and finally closed higher. Hong Kong stocks also give people a lot of surprises today-the outbreak of high dividend assets and the hustle and bustle of real estate stocks. The rise in Hong Kong stocks may be related to the recent heated discussion of "reducing and waiving the dividend tax for individual mainland investors to invest in Hong Kong listed companies through the Hong Kong Stock Connect".

There has been another rally in the dividend sector recently, and the strategy may still be sustainable. Although there has been more cash in the previous dividend sector, in the long run, there are still investment opportunities in the broad dividend sector, especially those companies with high ROE and stable dividends, especially consumer dividend companies deserve further attention.

The policy signal from the meeting of the Politburo in April exceeded market expectations, with particular attention being paid to the setting of the real estate market, emphasizing the "double arrows" of digesting stock and optimizing increment, while digesting stock was given higher priority. Recently, there are many hot spots in the market, and northward funds are stationed for a short time, but hot plates still need to return to the logic of performance support.

Since May, the hustle and bustle of the performance disclosure period has drifted away. Looking back, the increasing volatility of the market is the norm, and the funds driven by performance factors play games in the market, and as these factors fade, the market is expected to usher in a short long window.

For the future, we are generally optimistic. The reason is that the environment at home and abroad has improved: from overseas, US bond yields basically peaked and fell at the end of April, and the market expects the Fed to cut interest rates ahead of schedule, and risky assets are expected to be realized and repaired; from a domestic point of view, the current outlook is basically good, the policy tone is stable, and the export data released this week are stronger than expected. Therefore, under the action of internal and external resonance, the overall market risk preference may increase from the outside to the inside, which is conducive to driving the opportunities of Hong Kong stocks and A shares in the stage.

Market review

As of Friday's close, the Shanghai Composite Index closed at 3154.Bodyscratch.55 points, up 1.60% for the whole week. The top five sectors this week were agriculture, forestry, animal husbandry and fishing, national defense and military industry, real estate, non-ferrous materials and coal, with increases of 5.72%, 5.09%, 4.42%, 4.34% and 4.16% respectively, while those with deeper declines were computers, communications, media, integrated finance and consumer services, with decreases of-3.20%,-2.17%,-1.94%,-1.32% and-1.11%, respectively.

Hot spot playback

The people's Bank of China increased its gold reserves for the 18th month in a row, with a cumulative increase of 10.16 million ounces: based on the range average price, the central bank increased its holdings by a total of about 145 billion yuan. Data show that China's gold reserves stood at 72.8 million ounces at the end of April, up 60, 000 ounces from a month earlier. Affected by geopolitical uncertainty and other factors, central banks are more willing to allocate gold. Official global gold reserves rose by a net 290 tons in the first quarter of this year, an all-time high, according to the World Gold Council.

China's import and export figures became regular in April, exceeding market expectations: in dollar terms, China's exports grew by 1.5% and imports by 8.4%, with a trade surplus of US $72.35 billion. In RMB terms, China's exports in April totaled 2.08 trillion yuan, up 5.1 percent; imports totaled 1.56 trillion yuan, up 12.2 percent; and China's trade surplus was 513.45 billion yuan.

Plate hot review

Agriculture, forestry, animal husbandry and fishing: recently, the agriculture, forestry, animal husbandry and fishing sector has been catalyzed by the market, and some leading pig farming enterprises said: "the most difficult time has been passed." Is there a reversal in the pig farming industry? We may have such a trend in terms of supply and demand.

According to the Ministry of Rural Agriculture, by the end of the first quarter, the stock of fertile sows in China had dropped to 39.92 million, a nine-month pullback, a decrease of 3.14 million, or 7.3 percent, compared with the same period last year, and a decrease of 1.5 million, or 3.6 percent, compared with the previous quarter. This is the first time since October 2020 that the number of fertile sows has dropped below 40 million.

At present, the supply side is close to the green regulation range, and it is expected that there is little downside risk in the follow-up pig price. in the case of supply pressure, pig enterprises suffer losses in the first quarter, and with the recent acceleration of digesting pig inventory, the reversal of pig prices is gradually approaching.

Disclaimer: the information contained in this communication comes from reliable channels and personal judgments of the researchers, but the Company does not provide direct or implied statements or warranties as to its accuracy or completeness. This newsletter is not a complete representation or summary of the relevant securities or markets and any opinions expressed are subject to change without further notice. This communication should not be used by the recipient as an alternative to its independent judgment or as a basis for investment decisions. The Company or its relevant organizations, employees or agents shall not be liable for any use of the content in whole or in part by any person or for any loss arising therefrom. Without the prior written permission of Great Wall Fund Management Co., Ltd., no one may distribute, reproduce, reprint or publish this report or any part of it in any form, and may not make any deletions or modifications contrary to the original intention of this newsletter. Fund managers remind that every citizen has the obligation and right to report the crime of money laundering. Every citizen should strictly abide by the relevant laws and regulations on anti-money laundering. Be careful with your investment.

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