Since September 24th of this year, when the historic policy innovation combination proposed by Governor Pan at the press conference of the State Council Information Office was introduced, the A-share market has seen an unprecedented continuous surge in trading volume and sharp rises in stock prices. The Shanghai Composite Index soared to 3,674 points, and the daily trading volume of the two markets continued to expand, reaching a record high of over 3.45 trillion yuan.
Looking at the market that violently broke through 3,600 points on the Shanghai Composite Index and the nearly 3.5 trillion yuan trading volume of the two markets, as well as the background of continuous daily limit-ups in the early stage of mainstream stocks in finance, consumption, and technology, the bull market has already shown its strength.
Even after the rapid rise, the market has re-entered the adjustment phase, such as last Friday when the Shanghai Composite Index, Shenzhen Component Index, and ChiNext Index all broke through their five-day moving average closing prices at the same time, and the trading volume of the two markets continued to shrink, falling below 2 trillion yuan. This also cannot change the objective fact that the market and people's hearts have already turned.
Last weekend, the policy stance of the Ministry of Finance was overall beyond expectations, with a clear signal of fiscal incremental policy, most individual stock trends stabilized, and funds outside the market returned, confirming the transition from a "crazy bull" to a "slow bull" market.
The main theme of this bull market is closely related to "new quality productivity."
Looking back at history, every major bull market in China's stock market has been closely linked to the policy direction and national strategy of the time.
So, what might be the main theme of the current bull market? We need to think from the current needs of the country. In the top-level design proposed in September 2023 for the first time, "new quality productivity," we can find some clues.
As a key driving force for high-quality economic development, new quality productivity is highly valued at the national level. At the national policy and strategic level, new quality productivity is seen as an important strategic tool to meet the people's growing needs for a better life, and it is also a major strategic plan for coordinating the domestic and international situations.
From the perspective of national strategy and its deep internal needs, the development of new quality productivity is not only an inevitable choice for economic transformation and upgrading but also a strategic choice to build new competitive advantages and take the initiative in development. The sectors and industries involved in new quality productivity are quite extensive, including but not limited to low-altitude economy, digital economy, commercial space, and medical biology, all of which are the core and soul of the transformation of old and new kinetic energy. In the current traditional growth model has entered a bottleneck period, the proposal of new quality productivity is based on the internal requirements of China's own economic transformation and upgrading.
National policies are guiding the concentration of resource elements towards the direction of new quality productivity and supporting listed companies to transform and upgrade in the direction of new quality productivity. For example, in the "Opinions on Deepening the Reform of the Mergers and Acquisitions and Restructuring Market of Listed Companies" issued by the China Securities Regulatory Commission, it is proposed to guide more resource elements towards the direction of new quality productivity.In addition, the development of new-quality productive forces requires the proper handling of a series of significant relationships, including the relationship between productive forces and production relations, the relationships among the various elements of new-quality productive forces, the relationship between independent innovation and open innovation, and the relationship between new-quality productive forces and traditional productive forces. Through these measures, momentum and empowerment can be accumulated for the development of new-quality productive forces, promoting the integrated development of scientific and technological innovation and industrial innovation, and shaping new drivers and advantages for development.
In summary, the development of new-quality productive forces is an essential component of national strategy. It is not only an intrinsic requirement for high-quality economic development but also a key for the country to respond to external challenges and take the initiative in future development. With the support and guidance of national policies, new-quality productive forces are becoming the core driving force for the transformation and upgrading of China's economy and the formation of a bull market.
Although new-quality productive forces focus on "new," their core is productive forces, representing the development of strategic emerging industries and future industries. Essentially, they are driven by technological breakthroughs or innovative models in new types of manufacturing.
As a major manufacturing country, China is known as the "world's factory," and the huge trade surplus in goods trade each year proves the international competitiveness of China's manufacturing industry. However, many excellent enterprises in China's manufacturing industry have long been undervalued, which is also unreasonable globally.
Therefore, the core theme of this bull market is likely to be the repricing opportunities of competitive new-type manufacturing assets and state-owned assets.
CIMC Vehicles, a representative new-type manufacturing enterprise that embodies new-quality productive forces, is not only a reflection of technological innovation but also a comprehensive reflection of corporate organizational structural reform, optimization of resource allocation, and other aspects. As a leader in high-end manufacturing, CIMC Vehicles firmly grasps the core of new-quality productive forces, leads the industry to break through, and provides more beneficial references for traditional manufacturing to achieve "transformation."
Looking back at the development history of CIMC Vehicles for more than 20 years, since entering the semi-trailer industry in 2002, CIMC Vehicles has grown from a foothold in China to global operations, and from a newcomer in the industry to a global leader in high-end manufacturing of semi-trailers and special vehicles. This growth is inseparable from two keys: breaking through to the "new" and seeking change with "quality."
In the first stage of entrepreneurship, CIMC Vehicles started the semi-trailer business, which also marked the beginning of the formalization, industrialization, and scaling of China's semi-trailer industry. CIMC Vehicles, which has always maintained innovative vitality, has foresaw the urgent need for traditional manufacturing to transform and upgrade, and has taken the lead in exploring the construction of a high-end manufacturing system.
CIMC Vehicles has established intelligent manufacturing factories globally, known as "Lighthouse Factories." These factories, through the construction of automation, digitalization, and intelligentization, have not only improved production efficiency and product quality but also reduced costs and pollution emissions, representing a high level of intelligent manufacturing and digitalization in China's and the global manufacturing industry.Subsequently, facing the situation of weak overseas business, complex domestic business, and being large but not strong as a whole, in order to support the comprehensive construction and development of the high-end manufacturing system, CIMC Vehicles initiated the second entrepreneurship, experiencing a transformation from "global operations, local wisdom" to "transoceanic management, local manufacturing".
Through the second entrepreneurship, CIMC Vehicles has established a transoceanic operation pattern for its semi-trailer business and global supply chain management. Its overseas enterprises are based on local manufacturing and sales, while utilizing the global supply chain and jointly building and sharing the production organization of core components for global semi-trailers, achieving a higher level of productive efficiency.
At present, as China's economy enters a stage of high-quality development, the manufacturing industry is also facing the urgent task of transformation and upgrading. Only by continuously innovating, deepening reforms, and optimizing resource allocation through various means to create new quality productive forces can manufacturing enterprises achieve high-quality development in the torrent of the times and win the initiative in market competition.
CIMC Vehicles actively grasps market trends, with a pioneering entrepreneurial spirit, comprehensively promotes the third entrepreneurship, and creates new quality productive forces.
In 2023, CIMC Vehicles launched the "Starlink Plan", by innovating design and production technology, production organizational structural changes, and the reconfiguration of production capacity under the dual circulation, to create new quality productive forces, promoting the entire industry to fundamentally build a new development pattern. CIMC Vehicles, with the "Starlink Plan" as a symbol, focuses on the structural reform of semi-trailer production organization, improves the management process of transoceanic operations, and greatly enhances the efficiency of transoceanic operations.
The third entrepreneurship of CIMC Vehicles reflects its forward-thinking trajectory and innovative process in new quality productive forces, which not only effectively promotes the high-quality development of the enterprise itself but also provides a beneficial reference and demonstration effect for the transformation and upgrading of the entire manufacturing industry.
At the recent public roadshow, CIMC Vehicles also stated that in terms of performance improvement, the company will continue to promote the "Starlink Plan" of the semi-trailer business, gradually release the profit improvement brought by new quality productive forces, and actively layout the overseas market, integrate and optimize the overseas LoM network to achieve growth. It can be seen that the application and concentration of new quality productive forces are still the basis and focus of its development.
Within the last 20 trading days, if calculated based on the daily closing price, the maximum phase increase of CIMC Vehicles exceeded 41%, meeting the technical analysis standards for the transformation between bull and bear markets. Whether it can become the leader of the manufacturing industry under the bull market of new quality productive forces, let's wait and see.
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