Recently, blue-chip stocks have once again come into the public eye.

The reason is also simple: there is capital chasing after blue-chip stocks.

Whether it is the A-share market or the Hong Kong stock market, the money-attracting ability of blue-chip stocks is visible to the naked eye.

Why are blue-chip stocks favored at this stage?

There are many market interpretations.

The first interpretation is the capital inflow.

Foreign capital, from a strong bearish view on A-shares to the recent inflow into the A-share and Hong Kong stock markets.

Mainly because China's fundamental performance is still relatively strong.

Compared with the "poor" economic data of the United States, a large number of expectations are not met, coupled with the dilemma of interest rate cuts.

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Capital's view of China has changed again.This can also be indirectly confirmed from the recent exchange rate trends.

From being bearish to bullish, capital has very urbanely made the choices they believe are right.

Although there is no particularly large-scale increase in holdings, more or less, some capital has shown a situation of reflow.

The second statement is the undervaluation of the stock market.

Is the A-share market expensive? It is really not expensive.

The "not expensive" here refers to blue-chip stocks, not all A-shares.

The blue-chip and thematic stocks in the A-share market are relatively separated.

Thematic stocks enjoy high premiums because high premiums are needed to give this market more vitality and facilitate market financing.

But blue-chip stocks are different. Blue-chip stocks in the A-share market are very cheap, and blue-chip stocks in the H-share market are even cheaper.

Blue-chip stocks are like a huge undervaluation of the stock market, the pit is very deep, and there are not many funds willing to jump into the pit.The market is still somewhat short of funds, which has led to blue-chip stocks not being particularly favored in the past two years.

However, this does not affect the value of blue-chip stocks. When their value is recognized, funds will naturally flow continuously.

The third view is that of a financial powerhouse.

Proclaiming this slogan implies that the capital market is about to undergo a revolutionary change.

Regardless of how the concept of a financial powerhouse is ultimately implemented, blue-chip stocks will be able to get a share of the pie.

Because at the foundation of China, whether it is the economy or the stock market, blue-chip stocks are a crucial link.

At the beginning of January, when the idea of a financial powerhouse was just proposed, blue-chip stocks took the lead in starting up.

Some people think it is to stabilize the index, but in fact, it is the funds that have obtained the blue-chip stock chips at the bottom.

A-shares are a game of policy and capital; whenever a policy slogan comes out, the corresponding market and stocks will have movements.

However, the above three views are mostly superficial and have not returned to the essence of the market.Capital is profit-driven, and all the hustle and bustle is for the sake of profit.

Whether it is domestic capital or international capital, it is nothing more than seeing the value of blue-chip stocks.

However, whether this value is the true value, this point cannot be determined by the trend of a short period of time alone.

Are the blue-chip stocks of A-shares just starting to rise recently? Obviously not.

The starting point of the recent round of market for the four major banks was in early November 2022.

The starting point of the recent round of market for China National Petroleum Corporation and China National Offshore Oil Corporation was at the end of October 2020.

The starting point of the recent round of market for coal stocks such as China Shenhua was in March 2020.

The starting point of the recent round of market for power stocks such as Yangtze River Power can even be traced back to 2014.

Even the home appliances that have recently performed well, the bottom of the stage, is also around December 2023.

That is to say, capital has long entered the blue-chip stocks and tightly huddled together for warmth.The recent sudden prominence of blue-chip stocks seems more like the last hurrah before the curtain falls on the short term.

For blue-chip stocks to achieve a long-term, slow bull market, they need to undergo a "major blood transfusion" time and again.

The "major blood transfusion" mentioned here actually refers to driving out speculative capital.

The process of bottoming out for any sector is a lengthy one, and blue-chip stocks will not be an exception.

Therefore, the first phase of blue-chip stocks forging the ultimate market bottom may be coming to an end amidst widespread attention.

The judgment for this is not only due to the recent surge in popularity of blue-chip stocks, but also several other issues.

First, the need for adjustment in blue-chip stocks.

The reason why blue-chip stocks were abandoned by many funds in the past few years and became a low valuation area is mainly because the net profit growth of some blue-chip stocks was severely lagging.

There are also some listed companies that have experienced a decline in net profits.Under such a broad context, it is actually quite difficult for blue-chip stocks to continue to rise continuously.

More often, blue-chip stocks belong to the category of stealthy increases for a period of time, and after the market focuses on them, they begin to adjust.

Some blue-chip stocks have been rising for many years, and some have risen for several months, with an increase of more than 30%.

For these blue-chip stocks, it is quite normal to have a certain level of adjustment.

Secondly, the premium of some blue-chip stocks.

Although most blue-chip stocks are still relatively cheap in terms of valuation, some have already shown a clear premium.

Is Yangtze Power cheap? With a price-to-earnings ratio of more than 20 times, it is actually not cheap, and a dividend rate of 3.3% is not particularly high.

Some blue-chip stocks have enjoyed a higher premium space due to the group of funds.

But there is no stock that only rises and does not fall, especially the later it is, the more likely it is to have fluctuations and adjustments.

These high-premium blue-chip stocks may not necessarily plunge significantly, but there is no doubt that there will be a period of platform consolidation, a breather, and some fluctuations.In the short term, whenever there are funds willing to take over at high positions, there will inevitably be a significant amount of shares being sold.

Thirdly, the bottom shares are not unified.

If it is about the overall situation of large blue-chip stocks, one can refer to the SSE 50, A50, which are at a relatively lower middle position.

However, being at a lower middle position does not mean that there will be a continuous rise.

What needs to be done at a lower middle position is called cleaning of the bottom shares.

This means that blue-chip stocks may have a round of rise after another, followed by a round of shaking and washing.

The most typical case of blue-chip stocks is actually Hengrui Medicine. After digging to the bottom, it has been constantly shaking at a relatively lower interval.

Regardless of the market's ups and downs, it rises in a wave and adjusts in a cycle.

For blue-chip stocks to embark on a long bull market, they need to repeatedly shake at the bottom and gradually concentrate the shares.

The most important point is that blue-chip stocks themselves need to be strong, with certain performance growth, rather than lying on the credit roll and eating past performance.Last year, there was a point that was actually quite a failure, which is the Chinese special estimate.

Wanting to raise the valuation to raise the blue-chip stocks, this year's mentioned market value management is also a different approach.

If the performance of blue-chip stocks does not increase, just raising the valuation, such a castle in the air will not have results.

Because the higher the valuation, the lower the dividend rate, the lower the value of the investment.

Iron still needs to be hard, listed companies can continue to make money, keep dividing, enter a virtuous cycle, and naturally there will be a lot of money to favor, and the stock price will naturally rise.