CapitalVue Research Analytics China A Shares Recap and Sector Performance – 2Q2013 A Shares 2Q13 recap: industrials, financials tumble; health care and tech outperform Tech-heavy Chinext Index rose 17% in 2Q, while CSI 300 fell 12%. Stock market turnover fell in Shanghai but rose in Shenzhen. P/E ratios in Shanghai hit historic low; Shenzhen down slightly. Aggregate stock market performance and valuations for 84 industries Key Data : SSE, SZSE, CSI, CapitalVue 1 A select sample brought to you by [email protected]Authors: Sean Li, Elias Glenn
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CapitalVue Research Analytics
China A Shares Recap and Sector Performance – 2Q2013
A Shares 2Q13 recap: industrials, financials tumble;
health care and tech outperform
Tech-heavy Chinext Index rose 17% in 2Q, while CSI 300 fell 12%.
Stock market turnover fell in Shanghai but rose in Shenzhen.
P/E ratios in Shanghai hit historic low; Shenzhen down slightly.
Aggregate stock market performance and valuations for 84 industries
CSI 300 fell 11.8% in 2Q, including a -15.57% June, the biggest monthly decline since August 2009. Declines were led by the energy and heavy industry, as well as financials.
Silver lining: CSI 300 gained an average 6.75% in the month following 15% or more monthly decline since 2005 (five cases).
June turnover in Shanghai was down almost 20% from March, while turnover was up 34% for Shenzhen March-June, reflecting the clear preference for smaller cap growth stocks that should benefit from China’s restructuring.
Sources: CSRC, SSE, SZSE, CapitalVue
A Shares Market Recap
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100000
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Jan-11 Jul-11 Jan-12 Jul-12 Jan-13
Turnover & Valuation
Average Daily Turnover (Shanghai) Average Daily Turnover (Shenzhen)
Average P/E (Shanghai) Average P/E (Shenzhen)
RMB Mln PE
-23.76%
-21.26%
-9.81%
-4.37%
-6.45%
-4.41%
-10.45%
4.03%
9.39%
-13.38%
-11.80%
-11.51%
-30% -20% -10% 0% 10% 20%
CSI Energy index
CSI Materials index
CSI Industrials index
CSI Consumer Discretionary index
CSI Consumer Staples index
CSI Health Care index
CSI Financials index
CSI Information Technology index
CSI Telecommunication Services index
CSI Utilities index
CSI 300 Index
SSE Composite Index
2Q13 Sector Performance
SSE average June P/E lowest since at least end 2005.
Technology stocks outperformed.
Top performing sectors in 2013 are telecom, IT and health care.
Notes to sector performance tables: 1. Sub-industries are shown indented from their parent industry. 3. Stock market performance is for 2Q13. PE and PB are based on 1Q13 earnings and 2Q closing stock price.
Consumer discretionary stocks have outperformed the broad market, led by a 22.3% gain for media stocks in 2Q. The Chinese government has made development of media industries a major pillar in its restructuring strategy.
Consumer Discretionary
Sector Co.(#) 2Q13 Chg Gainers Decliners 2Q13 Market Cap (RMB Bln) PE (end of 2Q13) PB (end of 2Q13)
The CSI Industrials Index fell 10.51% in 2Q13, in line with the broader market. Transportation stocks, a bellwether for the overall economy, fell 15.9%, including 19% decline for airline stocks.
Sector Co.(#) 2Q13 Chg Gainers Decliners 2Q13 Market Cap (RMB Bln) PE (end of 2Q13) PB (end of 2Q13)
CSI 300 Index: link Shanghai Composite Index: link Shenzhen Component Index: link A shares trading volume: link A shares turnover: link Average daily A shares turnover: link Average daily turnover (Shanghai): link Average P/E (Shanghai): link Average daily turnover (Shenzhen): link Average P/E (Shenzhen): link Total A shares market cap: link IPO fundraising: link Follow-on fundraising: link Private placement fundraising: link
Sector summary pages: Consumer Discretionary: link Consumer Staples: link Energy: link Financials: link Health Care: link Industrials: link Information Technology: link Materials: link Telecommunication Services: link Utilities: link