New energy sector is favored

　　In the context of market worries that the US economic recession will bring global stock market shocks, the A-share market is "thriving"
.
Although the A-share market fell sharply in the first half of this year, as of the end of June, the Shanghai Composite Index fell by only 7% in half a year, and the Shanghai Index returned to the 3,400-point mark
.
And the A-share market has rebounded in the past two months, and the decline has gradually narrowed
.
The relatively strong return on assets has also attracted more and more northbound funds to flow into the Chinese stock market, with the new energy sector as the main investment target
.

　　Since the second quarter, especially recently, led by sectors such as photovoltaics, lithium batteries, and new energy vehicles, northbound funds have continued to flow
in.
As of June 30, the market value of northbound fund positions was 2.
57 trillion yuan
.
Among them, the net purchase volume in June reached 72.
9 billion yuan, more than three times more than in May, setting a new high for the year
.

　　Foreign investment statistics show that 30 stocks have been increased by northbound funds for 7 consecutive weeks, and 8 are concentrated in the two sectors of new energy and chemical industry
.
Among them, it holds 19.
57 million shares of Hualu Hengsheng, 24.
95 million shares of COOEC, 29.
32 million shares of National Ceramic Materials, 6.
05 million shares of Yangnong Chemical, 13.
96 million shares of Hongda Xingye, 91.
4 million shares of China Jushi, 5879 shares of Oriental Yuhong Ten thousand shares, Tongwei shares 44.
45 million shares
.

　　From the perspective of the industry, the new energy sector is favored and is inseparable from the national industrial policy
.

　　In May of this year, the General Office of the State Council forwarded the National Development and Reform Commission and the National Energy Administration's "Implementation Plan on Promoting the High-quality Development of New Energy in the New Era" and proposed that by 2030, the total installed capacity of domestic wind power and solar power will reach 1.
2 billion kilowatts or more.
Accelerate the construction of a clean, low-carbon, safe and efficient energy system
.
This escorts the sound and rapid development of new energy
.

　　The domestic economic recovery is also a factor favored by foreign capital
.
"With the improvement of the epidemic situation and the continuous release of policy effects, industrial production in various places has recovered steadily
.
In May, most industries and products achieved recovery
.
Among the 41 major industries in the industry, 25 industries achieved growth in added value, with an increase of 61%; The growth rate of the added value of 33 industries accelerated or narrowed from the previous month, accounting for 80.
5%
.
" Guan Bing, director of the Industrial Economics Research Institute of CCID Research Institute, said that the stable growth of high-tech manufacturing continued to play a leading role
.
In May, the added value of high-tech manufacturing increased by 4.
3%, 0.
3 percentage points higher than the previous month.
Among them, the output of new material products such as ultra-clear glass for solar energy industry, new energy vehicles, monocrystalline silicon, carbon fiber and its composite materials increased by 114.
9% respectively.
%, 108.
3%, 49.
8%, 22.
3%
.

　　It is worth noting that on June 24, the China Securities Regulatory Commission issued the "Announcement on the Incorporation of Exchange-Based Open-end Funds into the Interconnection Related Arrangements"
.
Subsequently, the Shanghai and Shenzhen Stock Exchanges issued the implementation measures for the Shanghai-Shenzhen-Hong Kong Stock Connect business, clarifying the relevant arrangements for ETFs to be included in the Shanghai-Shenzhen-Hong Kong Stock Connect for the first time
.
In the opinion of industry insiders, the Shanghai-Shenzhen-Hong Kong Stock Connect is an important channel for the two-way opening of China's capital market, which not only helps to enrich the types of trading products, but also provides more convenience for foreign capital to enter China's capital market
.

　　Zhang Wei, a senior analyst at Fullerton China Manufacturing, said that with the previous fall in the valuation of the new energy industry, and the prospect of increasing the penetration rate in the medium and long term, it is a good time to allocate
.
Many Chinese photovoltaic enterprises are export-oriented enterprises.
With the quarterly release of silicon material production capacity in the second half of 2022, this will further stabilize the prices of products in the industrial chain, and the mismatch between logistics and supply chain will gradually disappear
.
The strong demand for solar energy storage will provide protection for PV investment
.

　　UBS Wealth Management is bullish on energy metals and resource targets, including renewable energy stocks
.