After the A-share "Big Miracle Day" once again staged a familiar market volatility. Shanghai Composite Index closed at 1 July 4054 point intraday slid 224 points. Investors have begun after several adjustments jokes and self-comforting that under current market shares "less or that is earned." Subdivision of plate movements is also true. Near the 5th SW level industry overall fall of the plate, defense industry, commerce and colored plate fell more than 20 percent. But the banking sector outstanding, yet less than 5% decline in the least, while the food and beverage and consumer electronics sector also started to highlight the defensive. Analysts also stressed that the current multi-sector overall weak stock price elasticity, still looking for the theme of investment opportunities, waiting gradual shift in risk appetite.

Five sections on the 5th fallen 20%

The adjustment lever city, has greatly exceeded market expectations. As of July 1 closing, the Shanghai Composite Index has fallen nearly 5 636 points, a drop of 14%. Under huge adjustment, the industry sector was spared.

Wind data show that 28 SW an industry sector on July 1 all lower. Decline least for banks, pharmaceutical biotechnology and food and beverage sector, the day only 4% decline. Defense industry, building decoration and colored the highest decline, down about 7%. Cumulative increase of nearly 5 cases, and the 1st similar. Among them, the defense sector with 21% decline in the bottom; commercial trade, nonferrous metals, communications and computer sectors were down 20%, followed.

Volatility and turmoil intensified, rebound and bargain-hunting is unknown, the market began to loose confidence in the bull market. In this regard, Societe Generale Securities strategist Zhang Yidong still stressed that long-term basis of this bull market has not changed.

It noted that the base and then examine the current round of market, China is in transition and continue to promote reform, sustainable use of direct financing and equity investment; this will determine the current bull market may be accompanied by the whole process of China's economic transformation. The restructuring and mergers and acquisitions is one of the important driving force, and is currently in the positive feedback stage. In addition, to promote market-oriented interest rates, the trend of social wealth reallocation unchanged, will be a solid basis for long-term bull market.

"But the A shares soared crazy down the negative impact of the required extra attention and corrective, preventive measures," Zhang Yidong to "recharge your batteries" as the title of the latest policy review, and at the same time stressed that the short-term should not bo mentality participate. Which represents the second half of the A-share market will shift into the consolidation and stock market differentiation, refinement and specialization stage investments open.

Defensive front three: banking, consumer, home appliances

When adjusting the overall hit, plate characteristic of resilience began to markedly. Wind data show that the banking sector is the smallest decline in nearly five trading days, with a 4% decline in distant market leader. Sector stocks, Bank of Communications, Bank of Ningbo, Nanjing Bank three stocks also recorded a nearly 5-day rally. Food and beverage and household appliances performance is more prominent; the past five trading days fell 11%, respectively, 12%.

Ping An Securities medium-term strategy will be held this week, a senior banking analyst Huang Yaofeng stressed that the bank's relative gains in the second half will be significantly improved, "especially in the case of a substantial rise in the first half of the market no longer configured to increase the value of bank shares Absolute return is important. " It also also pointed out that the banking sector is expected to enjoy a double second half of restructuring and reform of the valuation and performance improvement; in the down real interest rates and economic conditions stabilize, the expected economic downturn inflection point expected in the second half fulfilled. Choice of individual stocks, you need to take into account the valuation is low, with catalytic event and performance flexibility.

Food & Beverage has been a hot topic during the year. Previously there have suggested a number of private equity in the second quarter can increase food and beverage configuration; but then buy the logic is "stagflation", now the logic is "low profile."

"The market rebounded, food and beverages but also to buy it? Buy, buy!" Hai Tong Securities analyst issued a report on Wednesday, heading attitude is very clear. And Societe Generale Securities statistics also show that in 1987, the most recent history is any guide, "crash" happened, consumer services and healthcare strong performance, the market value of the proportion of two plates throughout the 1980s rapidly.

Hai Tong Securities Analysts said that after the most recent slump reduced investor risk appetite, the market will become more balanced configuration, high-value stocks rising concern. In addition to the characteristics of low-rise, low valuation, the current market value of food and beverage sector accounted for only about 2% of the plate, and before this bull market has maintained an average of about 5 percent, "when most institutions roadshow customer feedback is almost no configuration, future upgrade larger space. "

The analysts also expect the majority of investor risk appetite is gradual, the implementation of the investment behavior takes time; and consumption season, state enterprise reform and other industries need to gradually cash positive, plate up time span or a quarter or even a year, the space a reasonable level of about 50%. "That current investors are desperately short of stabilizer, which means the stock price has support, reporting the results did not 'mine', but stimulated and so on, I think there is a weak catalytic plates, can not expect too much.