Message to 2022 (Green, Intelligent and Autonomous)

2021 is about to pass, and 2022 is already approaching. In the coming year, although the capital market is not as turbulent as last year, its decisive change of style and extreme trend still exceeded most people's expectations. After the Spring Festival, the "white horse stocks" with great momentum started a continuous decline mode. Represented by white horse stocks such as Hengrui, Ping An, Vanke, Gree, etc., these "hot cakes" in the eyes of value investors have stumbled one after another, and their stock prices have been falling all the way without looking back. The small and medium-sized market capitalization growth stocks represented by CSI 500 seem to have received the baton, kicking off the market after the Spring Festival in 2021. In particular, the new energy industry chain sector completed collective adjustments after the Spring Festival, quickly started an acceleration mode, regained lost ground, climbed to new highs, and became the brightest star in the market. Ningde Era, this benchmark enterprise of the new economy, has overcome all obstacles in the capital winter of 2021, and its highest market value is comparable to that of Industrial and Commercial Bank of China. One can't help but marvel at the power of the times.

The stock market is a barometer of the economy and a microcosm of the industry cycle. Looking at several economic trends throughout the year, they are all vividly reflected in the capital market.

1. The power of antitrust

2020 can be called the beginning of Internet antitrust, since the listing of Ant Financial was suspended Clues can be gleaned. Afterwards, on December 24 of that year, the State Administration for Market Regulation announced an anti-monopoly investigation into Alibaba Group Holdings Co., Ltd., which was undoubtedly the first anti-monopoly shot for the giant.

On April 10, 2021, the State Administration for Market Regulation made a decision in accordance with the law against Alibaba Group Holdings Co., Ltd. for its "choose-one" monopoly behavior in China's domestic online retail platform service market. Administrative penalties were imposed on them, including a high fine of 18.228 billion yuan. Behind this list are Tencent, Meituan, Didi, etc. that we are familiar with.

Under the high pressure of Internet antitrust, the former Internet giants lowered their noble heads. Alibaba has fallen by more than 60% since its high point, Tencent and Meituan’s share prices have shrunk by nearly 50% from their high point, and Kuaishou, which had high hopes in the early days of its listing in Hong Kong, has seen its share price fall by more than 80% from its high point. It can be said that the barbaric growth period of Internet companies has basically come to an end. It is difficult for companies of the same type in the later period to have the kind of peak period when institutions fanatically boost their valuations. So, where will the market spotlight turn from Internet companies in the future? We'll see.

2. The era of wealth creation through real estate is fading away

Under the policy of “housing is for living, not for speculation”, real estate is a way to quickly create wealth with the help of high leverage. The industry is cooling down. From the stock price trend of Hong Kong stock Evergrande, we can also see that the market can lift it to the clouds with the help of irrationality, or it can fall into the mortal world when the bubble bursts.

Real estate, as an important underlying asset in my country’s financial investment field, is synonymous with so-called fixed income. At the end of this cycle, when financial products are net-valued, the objects of financial investment will undergo a major shift. Equity assets will come to the forefront, which is the need of the times to build a standardized, stable, and large-capacity capital market.

A thriving capital market is essential from the perspective of increasing my country's economic vitality, adjusting the economic structure, or improving public asset allocation.

So, what are the major trends in the future that can stimulate the capital market and promote my country's economic development? In my opinion, to sum up, there are three main points:

1. Greening

In the era of "carbon peak" and "carbon neutrality" Under the guidance of policies, the trend of reducing carbon emissions and increasing environmental governance is extremely clear in the future. The new energy industry chain derived from this carries the important task of my country's economic transformation. The outstanding listed company targets involved in different subdivisions of this industry chain require our in-depth research and exploration.

2. Intelligence

If the popularity and application of smartphones have greatly changed our lives, then the future will be built on big data, The highly intelligent technologies such as cloud computing and artificial intelligence will bring about geometric changes. In a modern society that advocates convenience and efficiency, intelligence is the inevitable development of the times. On this track, small, medium and micro enterprises, although not well known now, are likely to be at the forefront in the next decade, following the pulse of the times. If we take ten years as a unit and learn from the current development prototypes of global cutting-edge technologies, great opportunities in the future may appear in the field of intelligence.

3. Autonomy

The trend of competition between China and the United States will not change, and sanctions and counter-sanctions will be the norm in the future. No matter how the United States imposes sanctions, this is what we must face and experience in the process of development. Only by overcoming difficulties and making breakthroughs in key areas can we gradually achieve real domestic substitution and move towards the rejuvenation of a strong country. Therefore, autonomy will become the leading idea for the development of our technology industry for a long time to come.

Facing this vast trend of the times, we are lucky to be a part of it. We will be a firm pioneer in the trend of the capital market and an in-depth "miner" in the industry trend of green, intelligent and independent industries.

Looking back on the market, one topic cannot be avoided, and that is the epidemic that has plagued us for two years. Thinking back to last year, a once-in-a-century epidemic struck, the global capital market was in turmoil, and the US S&P index experienced circuit breakers four times. The overall retracement was only one step away from the magnitude of the 1929 crash. However, the market trends in various countries have confirmed one sentence: desperate situation is scenery, and desperate situation is rebirth. Now we look back and continue to witness the years of history, and we have just staggered over. Our market has become stronger under the repeated negative attacks. Our country has become stronger despite severe challenges one after another.

Just as we were sorting out the data and writing this article, the epidemic began to recur again. How similar is this to the ups and downs of the capital market? Only by doing your part conscientiously will tomorrow be better. Let us seize the main contradiction, take a long-term view, and choose the best layout. I believe that only by sowing seeds in winter can there be a story of spring.

The market is stingy and never gives roses to others easily, and everyone in it needs to work hard to find and open the road ahead. That door to the light. I hope that 2022, a year that we have given different meanings to, can go as we wish, and that each of us can become our own brave light chaser in this new year.