Can film and television stocks usher in spring in 2020?
Editor’s note: This article comes from the WeChat public account “ Dramatic frontline ” (ID: TVfocus), author: cumin, editor: Li Qian Xue
In 2019, the Chinese film market finally fought over 60 billion hurdles. As soon as the year 2020 began, some film and television stocks began to rise gradually, and the box office and the stock market seemed to indicate that the film and television “cold winter” would be ushered in for several years. “Spring” is up.
Data shows that 8 of the top 10 box office films in 2019 are domestic films, with a total box office of 41.175 billion yuan, a market share of 64.07%, a year-on-year increase of 8.65%. And the 2019 Spring Festival file, summer file and National Day file are all given exciting and marketable videos. The upcoming 2020 Spring Festival stalls are also gaining momentum.
In the field of TV dramas, the important historical node of the 70th anniversary of the founding of New China has made many works of realistic theme shine. Opened the market. In the field of online dramas, there are also costume dramas such as “Chang’an Twelve Hours”, “A Sword Mountain Once Upon a Time”, “Ying Yu Years” and “Crane Pavilion”, which are reborn in the cracks.
From the end of 2019 to the beginning of 2020, the Shanghai Stock Index, Shenzhen Stock Exchange Index and ChiNext Index all closed up. The good news finally appeared in the market haze for several years. Can this new year’s starter be a smooth start to the “spring mania” market?
01 Macro policy escorting the market
On December 28, 2019, the Standing Committee of the National People’s Congress reviewed and approved the new version of the Securities Law, which will be implemented in March 2020. Compared with the previous regulations, the new “Securities Law” has revised and improved the securities issuance system, the reform of the stock issuance registration system, and substantially increased the cost of illegal securities. Through a series of measures that closely follow the trend, it strives to create a standard , Transparent, open, dynamic and resilient capital markets. A good market atmosphere will undoubtedly give investors confidence.
The film and television market must rely on everyone to pick up firewood to achieve high flames. Operating projects require a large amount of funds and multi-party forces to intervene. Relevant institutions also adjust the loan interest rate.Helping the film and television industry. Also on December 28, the People’s Bank of China issued the “People’s Bank of China Announcement [2019] No. 30”, which requires that the conversion of existing floating interest rate loan pricing benchmarks should be completed by August 31, 2020 in principle.
As early as August 17, 2019, the People’s Bank of China issued an announcement on the reform and improvement of the loan market quoted interest rate (LPR) formation mechanism. This time, the paper was issued again to further deepen the LPR reform, and promote the smooth conversion of the floating floating-rate loan pricing benchmark. The conversion from floating interest rates to fixed interest rates has eased the burden on film and television companies that are about to start loans and already have loans.
![A-share film and television companies have skyrocketed: the macro environment has improved, high-quality content has helped, and fresh gameplay has enhanced the color]()
Then on January 1, the People’s Bank of China decided to reduce the deposit reserve ratio of financial institutions by 0.5 percentage points on January 6, 2020. This is a full-scale reduction, releasing more than 800 billion yuan of long-term funds, effectively increasing the stable funding sources for financial institutions to support the real economy, reducing the financial costs of financial institutions to support the real economy, and directly supporting the real economy. For the film and television industry, more financial support can be obtained from institutions. For investors, there is more money to enter the stock market.
And 2020 is also the end of the “Thirteenth Five-Year Plan”, and counter-cyclical policies will be further strengthened, such as reducing financing costs, loosening margins of monetary policy, and lowering the central bank’s standards. As the project progresses, the profit of the film and television companies will pick up.
A series of initiatives by relevant departments were immediately reflected in the broader market. On January 2, the three major A-share indexes rose across the board. As of the close, the Shanghai index rose 1.15% to close at 3085.20. The Shenzhen index rose 1.99% to close at 10638.82. GEM rose 1.93% to close at 1832.74. In terms of plates, there is also a general rise.
02 The “warm-up” of leading bosses
According to Wind statistics, from December 1, 2019 to January 10, 2020, 25 of the 26 film and television animation companies rose by more than 10%, China Guangtian Select rose 111.03%, Ciwen Media rose 77.58%, contemporary Mingcheng rose 51.47%, Wanda Movies rose 48.53%, Beijing Culture rose 43.10%, Huace Movies rose 34.84%, Tangde Movies rose 28.97%, Hengdian Movies rose 29.57%, Jinyi Movies rose 24%, and Light Media rose 22.51% , Chinese movies rose 18.43%, Shanghai movies rose
According to Wind statistics, from December 1, 2019 to January 10, 2020, 25 of the 26 film and television animation companies rose by more than 10%, China Guangtian Select rose 111.03%, Ciwen Media rose 77.58%, contemporary Mingcheng rose 51.47%, Wanda Movies rose 48.53%, Beijing Culture rose 43.10%, Huace Movies rose 34.84%, Tangde Movies rose 28.97%, Hengdian Movies rose 29.57%, Jinyi Movies rose 24%, and Light Media rose 22.51% , Chinese movies rose 18.43%, Shanghai movies rose