B stock index plunged 10% in two days. How big is the impact?
The A-share index has just stabilized, but the B-share index unexpectedly fell by more than 7%. Uninformed investors may be frightened by such a large drop. On the surface, the B-share market is as famous as A-shares and H-shares. In fact, B-shares have been gradually marginalized in recent years, and the function of positioning foreign investors to invest in domestic companies has also been lost. At present, only B-shares are left in the entire market. There are 86 stocks , with an average daily turnover of less than 500 million yuan. The fluctuation of the index has limited impact on the A-share market.
B-share index fell 10% in 2 days
On September 26th, the B-share index quickly dived in the afternoon, and the decline expanded to 7%. As of the close, the B-share index reported 276.03 points, a decrease of 7.69%, and the total market turnover of B-shares expanded to 743 million yuan, the second highest this year. Yitai B shares, Zhongyida B, and Wumao B shares fell by the limit, while Yunsai B shares, Guoxin B shares, Lingyun B shares, and Power B shares fell by more than 9%. The
B stock index fell sharply for 2 consecutive days, with a cumulative decline of 10.5% in the 2 days. The official name of
B shares is RMB special shares, but it is named "B shares" to distinguish it from "A shares" and "H shares", which has no actual meaning. B shares are denominated in RMB, subscribed and traded in foreign currencies, and are foreign-funded shares listed and traded on the Shanghai Stock Exchange and Shenzhen Stock Exchange. Companies in the B-share market are registered and listed in China. B-shares on the Shanghai Stock Exchange are denominated in US dollars, and B-shares on the Shenzhen Stock Exchange are denominated in Hong Kong dollars.
The B-share market was established in 1992 to solve the direct purchase of Chinese companies by foreign investors. Before February 19, 2001, only foreign investors could buy and sell. Since then, the B-share market has gradually opened to domestic investors.
In recent years, A-shares have accelerated their opening to the outside world, attracting a large influx of foreign capital, while B-shares have gradually been marginalized, and the functional positioning of B-shares has also been lost. At present, there are only 86 stocks left in the market. If you only look at the market value of B, Yitai B has the largest current market value of B shares, with a market value of 13.6 billion yuan, followed by Gujinggong B with a market value of 12.3 billion yuan. 35 B shares have a market value of less than 500 million yuan and the smallest market value. The B-share company is Fuao B, with a market value of only 110 million yuan.
Among them, Yitai B was listed on Hong Kong stock simultaneously, and 74 B-share companies were listed on A-shares simultaneously. For example, the three B-share companies with a total market value of over 100 billion are BOE B, Gujing Gong B and Changan B, which correspond to A-share BOE A, Gujing Gong Liquor and Changan Automobile .
for what reason?
Specifically, on September 26, the B-share index plummeted by more than 7%, which was mainly affected by the plunge in , a constituent stock of . Yitai B, Baoxin B, and Ezi B, which have the highest market capitalization in the B-share index, fell 10%, 7.88%, and 9.1% respectively on the same day.
The recent poor performance of the A-share and Hong Kong stock markets has dragged down the stock prices of B-share companies in the A-share and Hong Kong-listed companies at the same time. For example, Yitai B company is the largest coal company in Inner Mongolia Autonomous Region and one of the largest coal companies in China. Coal stocks fell sharply on September 26, the A-share coal index fell 3%, and Yitai B, a Hong Kong-listed company, fell 6.72%. , Affected by it, Yitai B fell by the limit.
Overall, the B-share market has performed well this year. As of September 22, the B-share index has risen by 7.89% during the year. Even with the recent sharp drop, the B-share index fell only 3.44% during the year, far better than the 16.17% drop of the Shanghai index . The B-share index constituent stocks Yitai B, Zhonglu B, Ezi B, and Guoxin B still rose by 82.87%, 78.53%, 43.09% and 37.29% during the year.
market analysts pointed out that the recent declines in A-shares, Hong Kong stocks, Europe, America, Japan and South Korea have hit market sentiment, and some B-shares that have risen too high are showing signs of taking profits. In addition, the main factors currently affecting the B-share market Factors are also exchange rate and liquidity.
Most B-share companies are listed on A-shares at the same time. These companies have the same shares and the same rights. If the RMB depreciates and the US dollar and Hong Kong dollar appreciate, it can be understood that the value of B-shares is shrinking relative to A-share companies, so there will be a phenomenon of selling B-shares. .
In recent years, with the opening of Lu-Share Connect and the gradual expansion of investment scope, the superimposed QFII quota is gradually released, the allocation value of B shares is gradually weakened, and the liquidity of B shares is gradually lacking. Since the beginning of this year, the turnover of B shares has been even more sluggish. Only 6 of the 178 trading days have a turnover of more than 500 million yuan, and 31 of them have a turnover of less than 200 million yuan.
If B-share investors expect the renminbi to continue to depreciate, they will sell B-shares sharply, and the lack of liquidity will exacerbate the volatility of the B-share market. How big is the impact of
?
In fact, the valuation of B-share companies is far lower than that of A-shares, and it is of little significance for foreign investors holding B-shares to switch from investing in B-shares to A-shares.
Judging from the stock prices of companies listed on A shares and B shares at the same time, the stock price of B shares companies is far lower than the stock prices of A shares listed companies after exchange rate conversion. For example, the latest price of Zhonglu’s A shares is 30.27 yuan, and the latest price of B shares is $0.802. If calculated at the exchange rate of 7.0298, the valuation of A shares is 5.4 times that of B shares. At present, ST HNA has the lowest premium for A shares over B shares, with a premium ratio of 6%.
The B-share market fell sharply, with limited impact on the A-share market.
As of September 26, the B-share index fell by more than 5% only three times in the past three years. Except for September 26, the other two occurred on February 3, 2020 and May 12, 2020, respectively. Down 9.77% and 5.1%. In 2020, the two major falls of B-shares occurred below 3000 points of the Shanghai Composite Index, and the market trading was extremely cold. On February 3, the B-share market fell mainly due to the impact of A-shares. At that time, the Shanghai Composite Index fell by more than 7%. On May 12 The decline of the B-share market in Japan was mainly due to market concerns that some funds would be withdrawn, and the Shanghai Composite Index did not fluctuate much.
It can be seen that the sentiment of the A-share market will be transmitted to the B-share market, and the market sentiment of the B-share market has been difficult to influence the A-share market sentiment. The above-mentioned market participants pointed out that fluctuations in the B-share market have little reference value for investing in A-shares.
It is worth noting that the net outflow of northbound funds for four consecutive days last week began " bottom-hunting " on September 26, with a net purchase of 4.277 billion yuan throughout the day. In addition, the RMB exchange rate has also begun to stabilize. According to the People's Bank of China on September 26, in order to stabilize foreign exchange market expectations and strengthen macro-prudential management, the People's Bank of China has decided to sell foreign exchange forward from September 28, 2022. The foreign exchange risk reserve ratio of the business was raised from 0 to 20%; this move can greatly ease the pressure of RMB depreciation.
The European and American stock markets also began to stabilize overnight, and foreign selling sentiment is expected to ease. Looking forward to the market outlook, Bosera Fund said that since September, the market turnover has shown a trend of gradually shrinking, with an average daily turnover of slightly over 750 billion yuan, and the overall investor sentiment has been sluggish. At present, the domestic economy is still facing multiple pressures, but the overall situation of continued repair has not changed. Inflation levels overseas remained high, and major economies tightened monetary policy to curb high inflation. Comparatively speaking, my country's monetary policy and liquidity are relatively more friendly. The foundation for A-shares to be good in the medium and long term is still there, but there will inevitably be twists and turns on the way. In the short term, A-shares are likely to continue to fluctuate.
Guotai Junan believes that since September, the prices of many domestic assets such as A shares have fluctuated violently and fell below key positions. The event shock is only the appearance of stock price fluctuations. Behind the weak market is the trend of anti-globalization, and the demand for "safety" has been promoted to a more important position, which means that the elasticity of aggregate policy supply is weakened, and the game Economic policies and economic recovery are becoming increasingly difficult.
Editor in charge: Wang Lulu
Proofreading: Su Huanwen
