Xinhua Finance and economics, Beijing, January 27 – Yang Chao, director of the research department of Jinxin fund, visited today’s headline finance channel and Xinhua Finance online interview column “investment base methodology” on the 27th to share stock investment strategies.
Introduction to guests: Yang Chao, Bachelor of science from Anhui University, master of finance from Tianjin University of Finance and economics, and doctor of finance from Nankai University; Since 2006, he has successively worked as a researcher and senior researcher of Penghua Fund, China Greatwall Securities Co.Ltd(002939) senior analyst, chief analyst and head of Financial Research Institute; In March 2021, he joined Jinxin fund as research director and fund manager.
Q: can you summarize the overall market situation in 2021?
Yang Chao: 2021 is a year with prominent structural industries and fierce sector differentiation, but it is also a year with very clear clues. The rising mainstream tracks include new energy, semiconductor, cycle and other sectors. From the bottom up, the logic is also very clear. On the one hand, the substantial increase in sales leads to a significant increase in performance; on the other hand, the tight supply and the sharp rise in product prices drive a significant increase in performance, or both.
Q: popular tracks in the past year, such as new energy, semiconductor and military industry, have experienced significant fluctuations in the beginning of 2022. What do you think of this?
Yang Chao: new energy, semiconductor, military industry and other industries have historically been volatile industries. The decline at the beginning of the year is also a reflection of the high volatility of the industry. It is expected that these industries will still maintain a high prosperity in 2022, but the subdivided fields will be differentiated. For example, for photovoltaic, the prosperity of downstream components is expected to increase significantly, while last year, the prosperity of upstream components was relatively high.
The probability of structural market is still relatively high this year, but it is expected that the sector differentiation will not be as intense as last year.
Q: what sectors do you think deserve attention in 2022?
Yang Chao: first of all, in the medium and long term, the market sustainability of science and technology growth and low-carbon sector will be relatively strong. Investment should have a sense of the times and conform to the changes of industrial trends. The growth of science and technology and low-carbon will be the driving force of China’s economic development for a long time in the future. Therefore, new energy, semiconductor and military industry deserve continuous attention. Secondly, in the short term, there will also be phased opportunities for industries with steady growth and industries recovering after the epidemic. There are opportunities for marginal improvement in the policy of the real estate industry, which is also worthy of attention.
Q: in the past few years, many investors reported that the military industry sector fluctuated greatly. What do you think of this problem?
Yang Chao: in fact, not only the military industry, but also the scientific and technological growth sector will generally face the problem of large fluctuations. The core reason behind this is that for emerging growth industries, they are quite different from mature industries. Due to factors such as rapid technological iteration, large capital investment and industrial policies, the profit growth of industries and individual stocks fluctuates greatly, which will also affect the fluctuation of valuation. The combination of performance growth fluctuations and valuation fluctuations leads to large sector fluctuations. But for a long time, the investment income of this kind of sector will be higher in the future. You can’t have both fish and bear’s paw. It’s often difficult to give consideration to high yield and stability. Perhaps this is the psychological cost of investing in science and technology growth industry.
Q: what is your investment philosophy? What are the principles of building a portfolio?
Yang Chao: the investment framework is biased from top to bottom. Investment should have a sense of the times and need to comply with the changes of industrial trends. If you choose the right industry where the development power of the times is located, you may get a higher chance of winning. Specifically, it will give priority to the sectors that benefit from the tide of the times, and focus on the individual stocks that can win in the competition in the future and are expected to become the leader of the subdivided industry. The first consideration in building the portfolio is the industrial trend, and the portfolio will focus on the industries in line with the development trend of the times. Secondly, we will select individual stocks in combination with the industry boom, valuation, the company’s industry status and other factors.
Q: what are the characteristics of the products you manage? How do you think ordinary investors should invest in high volatility products?
Yang Chao: the products I manage hope to clearly reflect my views on the development trend of the future era. For products with large fluctuations, don’t easily chase up and kill down. Once the rhythm is not grasped, the opportunity cost may be relatively high, so you need to have a certain concentration. Of course, the fixed investment method can also be considered. Generally speaking, fixed investment for products with large fluctuations will reduce the negative impact of poor investment timing on earnings.
The fund is risky and investment needs to be cautious. The above is the actual record of the interview and Q & A of the guests, which only represents the personal views of the respondents, not today’s headlines and the views of Xinhua Finance and economics.
