Text/Chart Yangcheng Evening News All-Media Reporter Ding Ling

In 2021, the A-share capital market was very lively, with the market value exceeding 90 trillion for the first time, the turnover exceeding one trillion in 149 trading days, the number of days reaching an all-time high, and the share price of 323 stocks doubling … Looking back in 2021, what was the performance of the A-share market and what was remarkable about it? All-media reporters of Yangcheng Evening News made statistics from several dimensions, such as the performance of major stock indexes, the activity of market transactions, and the price increase of individual stocks.

A-share indicators hit record highs.

Let’s take a look at the overall performance of the A-share market in 2021. In terms of overall volume, by the end of 2021, there were 4,685 A-share listed companies, and the market value of Beijing, Shanghai and Shenzhen exceeded 90 trillion yuan, all of which were new highs at the end of the calendar year. The total market value of Nasdaq exchange is about 178.9 trillion, which means that the market value of A shares has accounted for more than half of Nasdaq. According to the data released by China Securities Depository and Clearing Co., Ltd., as of November 2021, the number of investors who have opened A-share accounts has reached 195 million. If the accounts are shared equally, a single account will be about 34,100 yuan.

At the same time, in 2021, the transaction activity in the A-share market also increased again, with the total turnover exceeding 257 trillion yuan, a historical record. The overall daily turnover rate was 1.32%, a record high in six years. The average daily turnover returned to the trillion scale, and the turnover of 149 trading days in the whole year exceeded trillion, accounting for more than 60%, and the number of days reached a record high.

Judging from the average daily turnover, the third runner-up of Guanya was won by Kweichow Moutai, Longji and BYD respectively. Kweichow Moutai jumped from the third place in 2020 to the first place. Longji and BYD both rank among the top three for the first time, and the top ten also show the faces of new energy companies such as Contemporary Amperex Technology Co., Limited, Tianqi Lithium Industry, Northern Rare Earth and Three Gorges Energy.

The performance of CSI 1000 Index is the most outstanding.

Both volume and transaction activity have reached new highs. What about the performance of Beijing, Shanghai and Shenzhen? Among the major stock indexes, the CSI 1000 Index is the most outstanding, followed by the GEM Index. The Shanghai Composite Index and Shenzhen Component Index rose relatively backward, while the Shanghai 50 Index and the Shanghai-Shenzhen 300 Index, which are dominated by large-cap stocks, all fell. The annual amplitude of the Shanghai Composite Index was only 12.06%, the lowest in history.

Interestingly, according to the market value range, stocks with a market value of more than 100 billion at the end of 2020 fell by an average of 1% in 2021. Other stocks in the market value range rose to varying degrees, and the lower the market value, the higher the increase. Stocks with a market value of less than 2 billion at the end of 2020 performed most prominently, with an average increase of 42.3% in 2021, reflecting the structural changes of the rise of small-cap stocks and the downturn of large-cap stocks last year.

From the perspective of stock price increase, excluding the new shares listed in 2021, a total of 323 stocks have doubled their share prices, hitting a new high since 2016. Hubei Yihua, Lianchuang and Senter are among the top three in the annual increase list of A shares; In 2021, the share price of 28 stocks fell by more than 50%, and the annual decline list of Zhonggong Education, which experienced a sharp decline in the third quarterly report, fell by 77.63%, making it the worst performing stock of the year.

While some listed companies ushered in the highlight moment, many listed companies left in a daze. Under the "strictest new rules for delisting in history", the pace of delisting of "inferior" listed companies has accelerated. In 2021, a total of 17 listed companies delisted from A-shares (excluding three mergers and acquisitions), an increase of one compared with 2020, and the number of delisted companies reached a record high. Among them, 6 shares were delisted due to face value and 7 shares were delisted due to continuous losses.

In addition, 74 stocks have been ST (excluding ST stocks that have been delisted), compared with the previous two years, the number has declined. There are 38 stocks whose net assets or net profits and operating income are not up to standard at the end of the period, accounting for nearly 51%.

The trend of slow cattle growing will continue.

Looking forward to 2022, how will A shares be interpreted and what investment opportunities are there? Yang Delong, chief economist of Qianhai Open Source Fund, said that with the effective control of the epidemic, the epidemic prevention and control measures are expected to be moderately relaxed and more accurate, and the impact on economic activities will be reduced. Therefore, some high-quality leading stocks killed by mistake will have the opportunity to recover in 2022. 2022 may be a great year for value investment, and the trend of a-share market will continue.

In 2021, the style rotation of A-share market intensified. Large-cap stocks that once dominated from the beginning of the year to the first half of the year fell back after entering the second half of the year, and small and medium-sized stocks continued to rise. Will the structural differentiation market continue in 2022? In this regard, Zhang Xia, chief strategist of China Merchants Securities, said that for A-shares, the core determinant of the style of large and small disks is the relative profit advantage between large and small disks. When the growth rate of large-scale performance is dominant, it presents a large-scale style; When the growth rate of small-cap performance is relatively high, it presents a small-cap style. Generally speaking, small and medium-sized companies have greater operational flexibility. In the years of economic recovery and high profit growth, small companies have stronger profit elasticity, which will be sought after by investors and reflected in the small-cap style. On the other hand, if the downward pressure on the economy increases and the growth rate of corporate profits slows down, investors will prefer large-cap stocks with higher performance stability and more defensive functions.

Source | Yangcheng Evening News Yangcheng School

Editor | Toby Lin

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