A shares are in pre-dawn

2019년 10월 23일

Last year, I analyzed the prospect of A bull market in China's a-shares. The current view remains the same. In the next 10 years, China's stock market will be the hottest asset in the world.

Logic is as follows

1. The globalization of a-shares is accelerating, and the new foreign capital access system leads to more capital flowing into a-shares. Msci, s&p, Russell and other indexes bring hundreds of billions of dollars, which is A real fresh force for a-shares with A market value of hundreds of billions.

2. A-share has experienced A 5-year bear market, and its current valuation is close to the low point of 2014. It is absolutely attractive in the market with matching safety and maturity across the world.

3. With China's economic transformation, traditional industries are under pressure from economic downturn, and innovative industries are favored by more policies, among which financial innovation is the beneficiary.

4. During periods of stagflation, it is easier for the market to favor light assets and for real estate to be abandoned.

5. From the technical point of view, we can see a shape in line with the bottom of the head and shoulders. The right shoulder is constructed near 2733 point and will be formed after breaking through 3100 point.

To sum up, in the next 10 years, the global stock market will look at China, and the Chinese stock market will become the battlefield for institutional investors to compete with each other. The market leader in the segmentation industry with good growth will be pursued by capital. Apple will be born in China, and moutai will not be the only one with a thousand-yuan share.

But personally I have a special liking for 5 g is, for the past two years I have been bullish about 5 g plate, because he is the foundation of the Internet of things fall to the ground, only 5 g, the Internet of things application can achieve all of the scene, so it is an obvious growth, from upstream to downstream in another 3 to 5 years, gradually expand, huawei Google + in copying apple's model, so the ecosystem surrounding the huawei once begun construction, for the relevant enterprises, would be a huge opportunity.



Strategy:

Choose subdivide bibcock, long-term hold, must have tremendous gain. In the next decade, the most promising investment in China must be in stocks, and the best opportunity in stocks is the 5G Internet of things