After new year’s day, the style of domestic and foreign capital tends to value
After the new year’s day, A-Shares ushered in a wide adjustment. The popular track became the hardest hit area occupied by the enemy, and the value style was obviously dominant. As of February 11, the Shanghai Stock Exchange 50 fell 4%, while the gem index fell 17%. The capital behind the market style switching has also made a choice. Both domestic and foreign capital have turned to value and withdrawn from the previous popular new energy and growth style.
The style of foreign investment is biased towards value, adding finance and cycle, and reducing medicine, computer and new energy. This year, foreign capital maintained a net inflow trend. As of February 11, the net inflow of funds going north was 27.5 billion yuan, including 35.9 billion yuan of Shanghai Stock connect and – 8.4 billion yuan of Shenzhen Stock connect. The structure is obviously biased towards value. Since the beginning of new year, foreign capital mainly buys undervalued varieties such as banks, cycles, real estate, and so on, and has reduced more holdings to medicine, TMT, Baijiu and other sectors. After the Spring Festival, the new energy sector also turned into a selling trend. From the perspective of individual stocks, foreign investors have mainly bought undervalued bank stocks and cyclical products including China Merchants Bank Co.Ltd(600036) , Ping An Insurance (Group) Company Of China Ltd(601318) since new year’s day, and Contemporary Amperex Technology Co.Limited(300750) , Jiangsu Hengrui Medicine Co.Ltd(600276) , Midea Group Co.Ltd(000333) are the top three holdings reduction.
The public offering style is biased towards value, the cycle before the Spring Festival is biased towards consumption after the Spring Festival. The domestic style is also biased towards value. According to our tracking of the yield of active public funds in the top 100, since new year’s day, the public offering style has continued to be biased towards the market value represented by SSE 50 and CSI 300, while the deviation from growth styles such as gem index and power equipment has gradually increased, and the decline of public offering has gradually narrowed when the gem has fallen sharply, The side reflects the withdrawal of public offering from the growth style. From the industry level, the public offering in January before the Spring Festival is mainly biased towards the cyclical sector, while after the Spring Festival, it is more inclined to the consumption sector represented by food and beverage.
Risk warning: policy promotion is not as expected; Historical experience does not represent the future.
