Dividends Of Restructuring And Reform Are Far From Being Fully Released.

Last week, when the market trend had not really been confirmed, we said that the market had started structural adjustment.

This week, the structural market continues to develop in depth.

That is to say, the adjustment market is still in the category of structural adjustment, because the foundation of its structural bull market has not changed.

The biggest support of structural bull market is the pformation of China's economy.

Since 2013, Internet, information, environmental protection, new materials, new energy and other sectors have been highly sought after. These new industries that represent the direction of pformation have become stronger and have opened a structural bull market in China's stock market.

Today, these emerging industries are still in the ascendant, indicating that economic restructuring is still on the way, and structural bull markets can not be over.

Another big support for structural bull markets is reform.

Reform includes two major aspects of politics and economy. Major reform measures such as rule by law, market reform, and reform of state-owned enterprises have just started.

Admittedly, the rise since July has already begun to release the benefits of reform. But can such a major reform only raise 400 points of A shares?

As a matter of fact, the Fourth Plenary Session of the fourth plenary session, which is based on the rule of law, ended today.

Under the background of the great dividend of the major political and economic initiatives of the rule of law, has the stock market fallen down?

As for marketization and

In fact, it has only begun. A large number of central enterprises and state-owned enterprises have not announced the plan of reform and reorganization.

For example, the reform of the military industry, how many of the ten major military industry groups have announced the reorganization plan? The most important thing is the integration of Chengfei and the fighter planes. The military industry is extremely large, and many scientific research institutes need to be reformed and injected. Therefore, the reorganization of the military industry has just begun.

Therefore, the structural bull market's support and motivation are still strong, and the strength and dividends of pformation and reform are far from being fully released.

It can be said that more structural reforms are needed than structural reforms.

And the success of pformation and reform will eventually bring about a comprehensive.

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Of course, we have to face a reality that many stocks have already had a big increase, which results in a greater risk in the current market.

In this regard, it is indeed necessary to avoid stocks that have accumulated huge gains and have no substantial support.

The profit taking of these stocks has brought about structural adjustment of the market.

Moreover, this adjustment will continue.

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The trend of blue chip stocks such as insurance, brokerages, electricity and so on is generally not increasing. Many stocks are still in the bottom of the big box and are in a state of shock.

Moreover, the valuation of these blue chips is still at a historic low level, which determines the limited space for the market to fall.

Therefore, the adjustment of the market is still the adjustment in the structural bull market, and will make further structural adjustments according to the factors such as the size of the increase, the future of the industry, the increase and decrease of the performance, the high and low valuations and so on.

When the structural factors of the market reach a balance again, the new market will start again.

From the operational point of view, undervalued blue chips, military industry, new energy, medicine, information security and other midline stocks are promising, and in this round of adjustment, they are faced with new opportunities for low absorption.