On May 21st, the A-share market fluctuated and strengthened, with heavyweight stocks performing well and the Shanghai Composite Index approaching 3400 points. As of the close, the ChiNext Index rose nearly 1%, with over 1600 stocks in the entire A-share market rising, and sectors such as gold and jewelry, power batteries, and coal performing well. The market saw a high volume of transactions, with a turnover of 1.21 trillion yuan. On the financial front, Wind data shows that as of May 21st, nearly 1500 listed companies have issued repurchase related announcements this year, involving repurchase amounts exceeding 110 billion yuan. Over 880 listed companies have invested real money and silver into the market to implement repurchases, with a total repurchase amount exceeding 60 billion yuan. Analysts believe that with policy support, the scale of repurchases by listed companies is expected to continue to increase in the future. The short-term market risk appetite has rebounded and fundamental expectations have improved, and A-shares will continue to be in a fluctuating and steadily upward trend. On May 21st, the A-share market saw a surge in volume, driven by the rise of heavyweight stocks. According to Wind data, as of the close, the Shanghai Composite Index, Shenzhen Component Index, ChiNext Index, and Beijing Stock Exchange 50 Index have risen by 0.21%, 0.44%, 0.83%, and 0.39% respectively, while the Science and Technology Innovation 50 Index has fallen by 0.22%. The Shanghai Composite Index closed at 3387.57 points, and the ChiNext Index closed at 2065.39 points. Heavyweight stocks strengthened, with the Shanghai 50 Index and Shanghai 300 Index, which are concentrated in large cap stocks, rising 0.43% and 0.47% respectively, while the CSI 1000 Index, CSI 2000 Index, and Wande Micro Cap Index, which are concentrated in small and micro cap stocks, fell 0.23%, 0.80%, and 0.94% respectively. In the case where heavyweight stocks drive the index up, individual stocks fall more and rise less. The total number of rising stocks in the A-share market is 1615, with 84 stocks hitting the limit up, 3604 stocks falling, and 3 stocks hitting the limit down. On that day, the trading volume of the A-share market was 1.21 trillion yuan, an increase of 3.1 billion yuan from the previous trading day. Among them, the trading volume of the Shanghai Stock Exchange was 465.957 billion yuan, and the trading volume of the Shenzhen Stock Exchange was 707.521 billion yuan. According to Wind data, as of the close on May 21st, the total market value of A-shares was 97.21 trillion yuan, an increase of 0.17 trillion yuan from the previous trading day. From the perspective of the market, sectors such as gold and jewelry, power batteries, and coal have performed well, while sectors such as banking and pharmaceuticals have also strengthened. Among the Shenyi industry, coal, nonferrous metals, and electric power equipment led the rise, up 2.55%, 2.05%, and 1.11% respectively; The beauty care, electronics, and social service industries experienced the highest decline, with declines of 1.09%, 0.93%, and 0.87%, respectively. Among the leading coal industries in terms of price, there is a significant increase in energy prices, with Shanmei International rising by over 6%, Jinkong Coal Industry and Liaoning Energy both rising by over 5%, and Shaanxi Coal Industry rising by over 4%. Among the eye-catching performance in the power battery sector, Lingpai Technology rose 20% to the limit up, Guoxuan High tech rose to the limit up, Xiangfenghua rose more than 5%, and Dangsheng Technology, Xingyuan Materials, and Ningde Times all rose more than 4%. Among them, CATL was the stock with the highest contribution to the Shenzhen Component Index and ChiNext Index on May 21st, contributing 18.20 points to the ChiNext Index, surpassing the daily increase in ChiNext Index and strongly driving the ChiNext Index up. Shen Jianguo, Chief Analyst of Huatai Securities in the New Energy Industry, stated that it is expected to see mass delivery of semi-solid state batteries and accelerated development of all solid state battery solutions by 2025. Currently, the product promotion of car manufacturers has entered the competition stage, and the low altitude and robot industries are also potential markets for the application of solid state batteries. The recommended solid state battery industry chain includes relevant links such as halide/polymer solid electrolytes, lithium metal current collectors, electrolyte membranes, silicon-based negative electrodes, ternary positive electrode materials, and dry electrodes. The current market is in a stage of both upward pressure and downward support due to the outbreak of repurchase waves among listed companies. In terms of funds, the repurchase funds of listed companies are continuously flowing into the market. According to Wind data, as of May 21st, after removing duplicate items, nearly 1500 listed companies have issued repurchase related announcements since the beginning of this year. From the upper limit of repurchase amount announced this year, the upper limit of repurchase amount involved exceeds 110 billion yuan, the upper limit of repurchase amount of Midea Group is 13 billion yuan in total, the upper limit of repurchase amount of Ningde Times is 8 billion yuan, the upper limit of repurchase amount of Kweichow Moutai is 6 billion yuan, and the upper limit of repurchase amount of Muyuan shares and Tongwei shares is 4 billion yuan. It is worth noting that Midea Group has released two repurchase plans, one with a maximum repurchase amount of 10 billion yuan and the other with a maximum repurchase amount of 3 billion yuan. The repurchase plan with a maximum repurchase amount of 3 billion yuan has been partially implemented, while the repurchase plan with a maximum repurchase amount of 10 billion yuan is yet to be implemented. Since the beginning of this year, a total of 882 listed companies have implemented repurchases, with a total repurchase amount of 60.793 billion yuan. Among the listed companies that have implemented repurchases since this year, Kweichow Moutai, XCMG, Muyuan Shares, Ningde Times, COSCO Shipping Holdings have the largest repurchases, with the repurchases of 4.05 billion yuan, 2.142 billion yuan, 1.61 billion yuan, 1.552 billion yuan and 1.367 billion yuan, respectively. The repurchases of Hikvision, San'an Optoelectronics, Sany Heavy Industry and Zijin Mining have all exceeded 1 billion yuan, and the repurchases of Beijing Shanghai high-speed railway have exceeded 900 million yuan. Including the 10 listed companies mentioned above, 19 listed companies have repurchased more than 500 million yuan since the beginning of this year. From the perspective of market performance, Wind data shows that as of May 21st, the average increase of the top ten stocks with repurchased amounts this year is 6.12%, outperforming the market. The largest increase is in Zijin Mining, which has risen 22.29% so far this year. In addition, according to Wind data, as of the time of press release on May 21, 276 listed companies have issued relevant announcements regarding the repurchase and increase of loans for repurchase since the beginning of this year. Calculated based on the maximum loan amount, the total loan amount is 48.463 billion yuan. Among the listed companies that have disclosed "repurchase loans", Muyuan Group, Haier Smart Home, and China Railway Group have the highest repurchase loan amounts, with 2.5 billion yuan, 1.8 billion yuan, and 1.6 billion yuan respectively. Xiamen Xiangyu, Midea Group, and Sanan Optoelectronics all have repurchase loan amounts exceeding 1 billion yuan. Industry insiders suggest that repurchase and increase loans, as a financial tool, can provide low-cost financial support for listed companies or individual shareholders, helping them to more effectively implement repurchase and increase plans. Yan Xiang, Chief Economist of Fangzheng Securities, stated that the increase in holdings and repurchases by listed companies has important positive significance for the long-term healthy development of the capital market. With policy support, the scale of increase in holdings and repurchases by listed companies is expected to continue to increase in the future. The continuous increase in buybacks also reflects the growing strength of listed companies in China. Market sentiment is expected to improve. According to Wind data, as of the close on May 21, Wande's all A rolling P/E ratio was 19.22 times, and the Shanghai and Shenzhen 300 rolling P/E ratio was 12.65 times. Compared with other markets, the A-share market valuation still has cost-effectiveness. For the A-share market, Li Lifeng, Chief Strategy Analyst at Huaxi Securities, stated that with the recovery of short-term market risk appetite and improvement in fundamental expectations, the main A-share indices have broken through the gap in early April; At the same time, there are still concerns in the market about external factors, so the profit taking sentiment of some funds has heated up at the current position. Looking ahead, A-shares will continue to be in a fluctuating and steadily upward trend, with policy support from stable and active capital markets driving the central index upward. For example, the third batch of pilot projects for long-term investment in insurance funds, the reform of the management fee collection model for public funds, and the new regulations for mergers and acquisitions of listed companies are all conducive to injecting incremental funds into A-shares and enhancing market activity. Qiu Xiang, Chief A-share Strategist at CITIC Securities, stated that in terms of overseas environment, the visibility of US trade policies is continuously recovering, and there has been no significant deterioration in "hard data", which is conducive to the recovery of risk appetite and investor sentiment. In terms of domestic policies, the April Politburo meeting strengthened bottom line thinking and fully prepared contingency plans. Although the overall market sentiment towards domestic policies has slightly cooled down, the overall level is not low. In terms of domestic economic fundamentals, overall economic growth is stable, export data has exceeded expectations, and the suppression of investor sentiment by trade factors is expected to significantly ease. In terms of company operations and profits, in April, due to the impact of trade factors, the overall business situation of Chinese enterprises has declined, and concerns about the company's profits are also expected to ease in the future. The overall market sentiment is expected to improve in May. In April, the year-on-year growth rate of social financing stock rebounded to 8.7%, indicating that the fundamentals and A-share profit upward trend will not change. ”Wang Jun, Chief Strategy Analyst at Bank of China Securities, stated that with the phased implementation of a broad monetary policy, the short-term market may lack strong upward catalysis. However, the expectation of fundamental repair and policy release has not been falsified, and the downside risk of the market is limited. The short-term market may enter a hot spot and style acceleration rotation stage. In terms of style, the increase in allocation of heavyweight stocks constitutes a short-term disturbance to the market style, and the growth mainline remains unchanged. The formation of a new trend can wait for incremental catalytic factors. (New Society)