The implementation of policies was slow, the fundamentals were weak, the overall market callback, and the decline of institutions was small. The signal of steady growth was clear, but the actual policy implementation was slow. The overall market fell in 2022 / 1. The Shanghai Composite Index fell by 7.6% in the whole month, and the average yield of active partial equity public offering funds was – 7.8%, which was basically the same as the overall performance of the market. In the growth and value portfolio constructed by Soochow strategy, only the high dividend strategy achieved excess returns.
The high dividend strategy won, with an excess return of 7% in January. Generally speaking, in the period of decline and shock consolidation after the sharp rise of the market, such as 2011-2013 and 2016-2019, the high dividend strategy gives play to the characteristics of “bear market umbrella”, and the excess return is obvious. In January, the market fell as a whole. At the end of the year and the beginning of the year, the market defensive sentiment dominated, and the expectation of stable growth was high. The high dividend portfolio with real estate, banking and mining as the main constituent stocks obviously outperformed.
In the theme index, the old infrastructure led the rise. From the perspective of policy, we focused on the theme of old and new infrastructure and real estate chain. The old infrastructure benefited from the market’s expectation of stable growth policy. The excess return in January was 6%, of which the strong stocks China Railway Group Limited(601390) , Power Construction Corporation Of China Ltd(Powerchina Ltd)(601669) rose by 7%; In addition, under the policy game, the excess return of the broad real estate chain including banks in January was 5%, which also outperformed the market, of which Postal Savings Bank Of China Co.Ltd(601658) , Industrial Bank Co.Ltd(601166) rose by 10%, leading the increase.
