Summary of this issue

Key recommendations

The central bank has targeted reserve requirement ratio cuts to release 550 billion yuan in long-term funds

Agricultural Development Bank of China: Will continue to increase How much credit investment has Da Shengzhu made?

?

Market Comments

Market Comments: The central bank’s timely RRR cut over the weekend and the rebound in U.S. stocks will help A-shares start a rebound

p>

Macro perspective: The central bank made a targeted RRR cut on March 16, releasing 550 billion yuan in long-term funds

Online education: Affected by the epidemic, online education has received strong support from the country, and industry leaders have benefited significantly

p>

Futures Information

Metal energy: gold 357.16, down 2.97%; copper 43680, up 0.37%; rebar 3536, up 1.26%; rubber 10720, up 1.28%; PVC index 6275, Up 0.48%; Zheng Chun 1887, up 0.37%; Shanghai Aluminum 12935, up 0.47%; Shanghai Nickel 99250, up 1.08%; Iron Ore 660.5, up 2.40%; Coking Coal 1283.5, up 2.15%; Brent Oil 38.3, up 3.74%; coke 1878.5, up 3.13%;

Agricultural products: soybean oil 5328, down 0.56%; corn 1988, flat; palm oil 4678, down 1.64%; Zhengmai 2525, up 0.40%; sugar 5542, fell 0.43%; Apple 6720, fell 2.04%; Jujube 10420, rose 0.48%; Zheng Mian 11955, fell 3.16%;

Exchange rate: EUR/USD 1.11, down 0.74%; USD/RMB 7.00, down 0.35%; USD/HKD 7.77, down 0.13%.

II. Key Recommendations

1. The central bank lowered the reserve requirement ratio in a targeted manner, releasing 550 billion yuan in long-term funds

Event: In order to support the development of the real economy, the actual situation of social financing was reduced In order to reduce costs, the People's Bank of China decided to implement a targeted RRR cut for inclusive finance on March 16, 2020, with a targeted RRR cut of 0.5 to 1 percentage point for banks that meet the assessment standards. In addition, eligible joint-stock commercial banks will be targeted to reduce their required reserve ratio by an additional 1 percentage point to support the issuance of loans in the inclusive finance field. The above targeted RRR cuts will release 550 billion yuan in long-term funds.

Comment: This targeted RRR cut is in line with market expectations, reflects the central bank’s confidence in strengthening countercyclical adjustments, and also shows that the central bank still has large room for flexible operation in terms of monetary policy. At present, the domestic epidemic situation has improved significantly, policies continue to be warm, and there are opportunities for rebound after the collapse of overseas stock markets. It is expected that the market is expected to maintain structural performance.

(Investment consultant Zhong Yanling’s registered investment consultant certificate number: S0260613020024)

2. Agricultural Development Bank of China: Will it continue to increase its investment in pig credit?

Event: State Council The joint prevention and control mechanism held a press conference on March 15. Lin Li, executive director and vice president of the Agricultural Development Bank of China, said that since the beginning of this year, the bank has issued a total of 10 billion yuan in pig loans. As of now, the bank's pig industry loan balance is 20.5 billion yuan, an increase of 5.7 billion yuan from the beginning of the year, an increase of 39%. In the next step, we will continue to increase investment in pig credit, complete the annual investment plan as soon as possible, and make due contributions to ensuring the supply and price of pigs and serving people's livelihood.

Comment: Although the policy continues to increase investment in pig breeding, considering that it takes a certain period for pigs to be slaughtered, it is expected that pork prices will remain high in the future. Coupled with the impact of the epidemic on free-range farmers, it is expected that industry production capacity will continue to concentrate on leading companies, and leading companies are expected to continue to enjoy both volume and price increases in the future.

(Investment Consultant Zhong Yanling’s registered investment consultant certificate number: S0260613020024)

3. Market Comments

Market Comments: The central bank’s timely RRR cut over the weekend and the rebound of U.S. stocks are conducive to A-shares started to rebound

Affected by another circuit breaker in US stocks overnight, the three major A-share stock indexes opened lower and moved higher last Friday. As of the close, the Shanghai Composite Index was at 2887.43 points, down 1.23%; the Shenzhen Component Index was at 10831.13 points, down 1.00%; the Chuang Index was at 2030.58 points, down 0.75%. Looking at the market, UHV, land transfer, and semiconductors are at the top of the sector gainers list, while masks, disinfectants, and medical waste treatment sectors are at the top of the decline list. Against the background of the plunge in overseas markets last week, A-shares still showed strong gains. toughness. In addition, the central bank's reserve requirement ratio reduction and the rebound of U.S. stocks over the weekend are conducive to the rebound of A-shares this week. The operation should control the rhythm and avoid chasing the rise and killing the fall. Pay attention to the 5G, industrial Internet, UHV, artificial intelligence, new energy vehicles and other sectors covered by "new infrastructure". There are risks in the stock market, so investment needs to be cautious.

(Investment consultant? Gu Zhixiong? Registered investment consultant certificate number: S02606611020066)

Macro perspective: The central bank made a targeted RRR cut on March 16, releasing 550 billion yuan in long-term funds

Event: The RRR cut was implemented as scheduled, but what exceeded expectations was that although this was a targeted RRR cut, the scale of funds released was no less than a comprehensive RRR cut.

On March 13, the central bank announced that it would implement targeted reserve requirement ratio cuts for inclusive finance on March 16, with targeted reductions of 0.5 to 1 percentage point for banks that meet assessment standards. In addition, eligible joint-stock commercial banks will be targeted to reduce their required reserve ratio by an additional 1 percentage point to support the issuance of loans in the inclusive finance field. The above targeted RRR cuts will release 550 billion yuan in long-term funds.

Comments: The RRR cut was implemented as scheduled, but what exceeded expectations was that although this was a targeted RRR cut, the scale of funds released was no less than a comprehensive RRR cut. On March 13, the central bank announced that it would implement targeted reserve requirement ratio cuts for inclusive finance on March 16, with targeted reductions of 0.5 to 1 percentage point for banks that meet assessment standards. In addition, eligible joint-stock commercial banks will be targeted to reduce the required reserve ratio by an additional 1 percentage point to support the issuance of loans in the inclusive finance field. The above targeted RRR cuts will release 550 billion yuan in long-term funds. Judging from the news, the overall effective release of monetary liquidity easing expectations, the news is obviously positive.

(Investment consultant? Gu Zhixiong? Registered investment consultant certificate number: S02606611020066)

Online education: Affected by the epidemic, online education is strongly supported by the country, and industry leaders have benefited significantly

Online education industry: The Ministry of Education and others jointly issued a notice on the work arrangements for "suspension of classes but not suspension of learning" during the postponed start of primary and secondary schools, and "the national network cloud platform for primary and secondary schools will be launched on February 17." At the same time, various provinces and cities have launched online teaching platforms, and online education-related targets will benefit. It is recommended to pay attention to industry leading targets.

(Investment consultant Gu Zhixiong registered investment consultant certificate number: S02606611020066)