A notice issued by the State Council of the People’s Government of the People’s Republic of China detonated A shares: the daily limit of more than 100 shares stopped and even these positives

A notice issued by the State Council of the People’s Government of the People’s Republic of China detonated A shares: the daily limit of more than 100 shares stopped and even these positives

A notice issued by the State Council of the People’s Government of the People’s Republic of China detonated A shares: the daily limit of more than 100 shares stopped and even these positives

A big news, A shares soared 1.

5 trillion!

Over one hundred shares daily limit, at least these are positive.
Source: China Fund reported a “Notice” issued by the State Council and the State Council, detonating A trillion growth today.

  On June 10, the General Office of the Central Committee of the Communist Party of China and the General Office of the State Council jointly released the “Notice on Doing a Good Job in the Issuance of Special Bonds by Local Governments and Supporting Financing of Projects” (the “Notice”).

  Among them, the proposal allows “special bonds to be used as eligible major project capital”, and “actively encourages financial institutions to provide supporting financing support”, which broadens the scope of the use of existing special debt as supporting funds, and has attracted market attention.

  Today’s A-share market grew “enthusiastically” in response to the aforementioned documents.

  The daily limit of more than 100 shares: A stock market value surged 1.

The news of 53 trillion supporting infrastructure detonated A shares.

  Affected by the above news, this morning A shares opened higher all the way, led by infrastructure stocks, brokers, brewers charge, the market is fully upward.

In the final close, the Shanghai Composite Index rose by 2.

58% to close at 2925.

72 points, back above 2900 points; the Shenzhen Component Index closed up 3.

74%, GEM Index rose 3.

91%.

141 stocks in the two cities rose, and the stocks rose across the board.

  Even the price rose sharply, and the volume was obviously increased. The turnover of the two cities reached 556.5 billion US dollars, a substantial increase from the previous trading day.

Kitakami Capital also bought 73 heavily.

700 million.

  At the close today, the total market value of A shares reached 52.

53 trillion, 51 trillion at the close earlier, a surge of 1.

53 trillion yuan.

  Infrastructure stocks broke out. Liquor Charge charged “for allowing special bonds to be used as eligible major project capital”, Hua Chuang Securities Research reported that it can increase capital by 100-200 billion and leverage 4-7 times, and may eventually leverage newIncrease infrastructure investment 0.

4 trillion-1.

4 trillion.

  The direct benefit of infrastructure construction stocks has also become a large backbone of today’s growth.

Infrastructure stocks rose the most, with building materials up 5.

27%, construction machinery rose 4.

99%, construction and industrial machinery also rose more than 4%.

  In the plate, more than 20 stocks such as Yaopi Glass, Qingsong Jianhua, Oriental Garden, Dagang Road Machinery, Chinalco International, China Academy of Sciences, Qilian Mountain, etc.

Leading stocks, Conch Cement, China Construction rose more than 4%, China Communications Construction rose 5.

22%, China Railway Construction rose 6.

72%.

  Brokerage stocks, as a market vane, are also growing violently today5.

35%, Harbin Investment, Hualin Securities, China Galaxy and many other stocks daily limit, liquor stocks also rose more than 5%.

  China Central Office, State-owned Office “Enlarged Recruitment” to Promote Investment On June 10, the General Office of the Central Committee of the Communist Party of China and the General Office of the State Council jointly issued the “Notice on Doing a Good Job in the Issuance of Local Government Special Bonds and Supporting Project Financing” (referred to as the “Notice”)” “).
  Among them, the proposal allows “special bonds to be used as eligible major project capital”, and “actively encourages financial institutions to provide supporting financing support”, which broadens the scope of the use of existing special debt as supporting funds, and has attracted market attention.

  After the release of this high-profile document, relevant persons in charge of the six ministries and commissions of the Ministry of Finance, the Development and Reform Commission, the People’s Bank of China, the Audit Office, the Banking and Insurance Regulatory Commission, and the Securities and Futures Commission issued a question and answer for a more specific explanation.
  Relevant persons in charge of the six ministries and commissions stated that the “Circular” revolves around the goal of using reforms to resolve contradictions and problems in development, and in accordance with relevant laws and regulations, distinguishes financial support standards reasonably, highlights funding support priorities, provides supporting financing support, and broadens major issues.In terms of project capital channels, guaranteeing debt repayment responsibilities, etc., we propose systemic policies and measures to support the financing of special bond projects. They not only play a leading role in increasing the effective investment of special bonds, but also firmly adhere to the bottom line of risk prevention and control, and effectively protect the economy.Healthy development is sustainable.
  Special debts can be used as capital for major projects. Infrastructure investment is expected to drive an additional 7 points. The notice attracts the most attention from the market: special bonds are allowed to be used as eligible major project capital.

  Terrorism, because special debt is debt funds and cannot be used as project capital, this time has been relaxed, but the main 苏州夜网论坛 broadened areas are concentrated in the infrastructure part, and high-voltage lines for the prevention and control of hidden debts still exist.

“For the special bond support, which is in line with major central decision-making and deployment, and has the effect of continuous demonstration, the major projects are mainly nationally supported railways, national highways, and local highways that support the promotion of major national strategies.In the case of assessing project income and repaying the special bonds after the principal and interest of the special bonds increase financing conditions, some special bonds are allowed to be used as a certain percentage of project capital, but must not be excessively financed beyond the actual level of project income.

“But at the same time, the document also clearly states that” resolutely do not take the path of disorderly borrowing for construction “,” resolutely prevent the increase of hidden debts “,” resolutely hold lifelong accountability and accountability for borrowing new debts “.

  The market generally believes that this move will alleviate the problem of insufficient capital for major infrastructure projects, highlighting the proactive fiscal policy to further increase efficiency and is the latest alternative to the Chinese government’s stimulus for fixed asset investment and economic stability.

  Analysis by Zhang Yu, chief macro analyst of Huachuang Securities, means that the special debt can be used for infrastructure funds of about 200 billion to 400 billion yuan, which can increase capital by about 100-200 billion, which can magnify 4-7 times leverage, and additionally pullInfrastructure investment 2.

2 supplements to around 7 additional.

  First of all, there are still 1 remaining to add special debt.

3 trillion, considering that the proportion of special debt in the designated infrastructure direction is about 15-30% (according to the issuance rhythm since the beginning of the year, the proportion of land storage and shed reform uses is as high as about 70%), then the special debt can be used for the infrastructure partThe funds are about 200 billion to 400 billion.

  Because only major projects that meet the requirements of the document can be used as capital, assuming that half of the special debt debt used for infrastructure funds belongs to major projects, the capital can be increased by about 100-200 billion.

  Leverage has two vertical angles. The first one is direct transfer. According to the capital requirements of existing infrastructure projects, about 20-25%, so the leverage is 4-5 times. The second is the actual replacement, which is based on the capital investment / budgetary capital ratio.Looking at the actual leverage, it is currently about 7 times.

So leverage is between 4-7 times.

  It can increase capital by 100-200 billion, leverage 4-7 times, and finally may leverage 0 to supplement infrastructure investment.

4 trillion-1.

4 trillion.
(Considering that the yields of many major projects are not high, and other funds are not expected to participate strongly, the actual leverage can hardly reach 4-7 times, and the offset here is optimistic.

) Assuming that the capital and supporting funds for leveraging infrastructure investment land proportionally (that is, according to the forecast of the full-pull scenario), considering that the size of infrastructure investment in 2018 is about 18 trillion yuan, additional infrastructure investment will be driven2.

2 supplements to around 7 additional.

  The market generally believes that this is the primary reason for the surge in infrastructure today.

  Encouraging financial institutions to provide matching financing scale, the market also pays attention to a key point: The Notice actively encourages financial institutions to provide matching financing.

That is, the project can be financed by a combination of special debt and market-based financing (such as loans), and project income is managed by separate accounts.

  Specifically, the “Notice” proposes that, in response to the implementation of enterprise-oriented operation and management projects, bank institutions are encouraged and guided to use project loans and other methods to support the construction of special bond projects that meet the standards.

Encourage insurance institutions to provide financing support for the construction of long-term special bond projects that meet the standards.

Project units are allowed to issue corporate credit bonds and support special bond projects that meet the standards.

  However, entities and financial institutions conducting market-based financing need to comply with relevant regulations.

The “Notice” is still being revised. The project unit shall cancel the hidden debt in any way, the market-oriented transformation has not been completed, and the financing platform company whose stock of hidden debt has not been resolved shall not be used as the project unit.Make prudent decisions and resolutely prevent and control risks.

  In addition to allowing special bonds as eligible major project capital and actively encouraging financial institutions to provide supporting financing support, the Notice also recommends that a reasonable distinction be made between financial support special bond project standards, precise key areas and major projects, and ensuring maturity.Debt repayment responsibilities to support the financing of special bond projects.

  Infrastructure industry chain investment opportunities attract attention Many securities firms have expressed concern about investment opportunities in the infrastructure industry chain.

  GF Securities said that the uncertainty of the external environment has increased recently, and the coherence and regulation of countercyclical policies have gradually increased.

The introduction of this policy will help improve the margins of financing channels, and the growth of infrastructure investment in the second half of the year will promote a gradual recovery.

The company recommends paying attention to three main lines: 1) Overweighted infrastructure investment is expected, which is good for front-end testing / design companies with high growth performance and low-profile infrastructure central enterprises; 2) The completion of real estate improvement is good for the improvement of the performance of residential full decoration companies;Opportunities that combine performance topics such as transformation.

  Minsheng Securities suggested focusing on structural opportunities in the infrastructure industry chain.

Since the early days of construction, the growth rate of the steel industry has ranked among the top two in the Shenwan Tier 1 industry, and it has a clear performance advantage compared to other industries.

The ratio of public offering and foreign allocation in the infrastructure industry chain is also in a severely underweight state.

The market ‘s expected growth in policy space and policy expectations has promoted the introduction of special debt issuance policies, which has a more pronounced expectation on the infrastructure industry chain.

At the same time, in the face of uncertainty in trade frictions, the infrastructure industry chain is obviously defensive.

Therefore, it is recommended to pay attention to the structural opportunities of the infrastructure industry chain.