According to the latest data, Allianz Shenzhou A-share fund, the largest overseas Chinese equity fund, reduced its holdings of Contemporary Amperex Technology Co.Limited(300750) , with a reduction range of 10.56%, and the market value of its position was US $445 million by the end of January.
Over the same period, the fund reduced its holdings of 14.78% of China stock market news, 5.29% of Jinjiang International and 12.23% of Yunnan Energy New Material Co.Ltd(002812) ; Increase the shareholding of Citic Securities Company Limited(600030) , 10.10% and China Merchants Bank Co.Ltd(600036) , with a slight increase of Shanxi Xinghuacun Fen Wine Factory Co.Ltd(600809) , Wuliangye Yibin Co.Ltd(000858) , Midea Group Co.Ltd(000333) , Shenzhen Mindray Bio-Medical Electronics Co.Ltd(300760)
Overseas Chinese stock funds doubled their holdings and Tencent “ningwang” was reduced! All kinds of funds are fierce to copy the bottom of the Internet
After the in-depth adjustment since 2021, bottom reading Internet stocks seems to have become the consistent action of all funds.
On March 3, Allianz investment, UBS and other overseas giants announced the latest positions of their A-share funds. In January this year, the two giants made significant adjustments to their positions. Allianz investment reduced its holdings of several new energy stocks, and traditional financial stocks attracted their attention. UBS’s position adjustment was even greater. Its UBS China selected stock fund doubled its holdings of Tencent in January, while its holdings of traditional financial stocks were reduced.
In fact, recently, many investment leaders have expressed their optimism about the Internet sector. Buffett’s golden partner, Munger, expressed his optimism about Alibaba and Chinese assets at the annual daily journal shareholders’ meeting. Duan Yongping, known as “China Buffett”, has also increased his position in Tencent holdings again recently.
The analysis shows that the policy pressure facing the Internet is similar to that of liquor in 2012, and regulatory policy is the key. At the same time, the Internet industry is facing the internal crisis as well as the Baijiu industry. However, in addition to policies, the endogenous growth power of Internet enterprises is the key factor determining their long-term development prospects. Internet enterprises need to actively look for new development directions, and the business areas encouraged by policies may be an important direction.
UBS doubled its holdings of Tencent
In addition to the well-known investor Duan Yongping shouting to increase the position of Tencent, overseas asset management giants have also made big moves.
On March 3, UBS (Luxembourg) China select equity fund, the third largest overseas Chinese equity fund, announced the top ten heavy positions by the end of January 2022. During January, the fund significantly increased its position of Tencent holdings, with an increase of 100%. The market value of the latest position was US $737 million, and the positions of Netease and Alibaba remained unchanged.
China Merchants Bank Co.Ltd(600036) H shares, Ping An Insurance (Group) Company Of China Ltd(601318) , HKEx and other traditional financial stocks were reduced by 7.04%, 10.94% and 6.8% respectively.
Affected by the correction of core assets of A-Shares and the in-depth adjustment of Internet stocks, UBS (Luxembourg) China selected stock fund lost 25.9% in 2021. Among all overseas Chinese stock funds, the loss range was large, and even underperformed the benchmark index. Since this year, UBS (Luxembourg) China selected equity fund has continued to lose money, with a loss margin of 6.62%.
At the same time, the fund scale is also shrinking. Previously, UBS (Luxembourg) China selected equity fund was the largest Chinese equity fund, with a scale of more than 10 billion US dollars and a current scale of 7.3 billion US dollars.
Why did UBS sharply copy the bottom of Tencent and other Internet stocks at this time? Huang Yiqi, head of emerging markets and Asia Pacific Equities at UBS asset management, said that some Internet companies would still be under pressure in the short term due to the impact of policy regulation and growth slowdown. However, compared with some large technology companies in the United States, the stock prices of large technology companies in China have become attractive. At present, it may not be the right time to pursue beta earnings in the industry, but we are still optimistic about the investment opportunities of some Internet companies with long-term competitiveness.
investment bosses copy the bottom of the Internet
On February 28, when Tencent holdings was approaching the lowest price in the early stage, Duan Yongping, a well-known investor, made another move and issued a document saying that it was lower than the price I bought last time. I will buy some more tomorrow. In the comments, Duan Yongping attached his order record, set the price at US $53.5, and the total transaction amount is expected to be US $5.35 million.
It is worth noting that this is not Duan Yongping’s first time to copy the bottom of the Internet. On August 3, 2021, Tencent’s share price fell sharply, with a maximum decline of more than 10%, and nearly 40% from the high of HK $773. Subsequently, on August 4, Duan Yongping announced on his personal account that he had bought a small amount of Tencent and said that if he fell again, he would buy more.
After a few days of shock, Tencent’s share price returned to the decline. On August 18, 2021, Duan Yongping sent another document saying he bought some Tencent and Alibaba. However, compared with Duan’s first position, Tencent did not end the adjustment after he took the shot this time.
Duan Yongping once said that although he had a netizen of Tencent executives, he did not communicate with Tencent insiders before investing. The real reason driving his investment is Tencent’s commercial moat.
For the game field, Duan Yongping believes that the most fundamental thing of the game is actually to spend time and get happiness at the same time. For most people, online games are the most cost-effective way to get simple happiness.
Duan Yongping said that good games are definitely good business. But ordinary games may not be. Good game companies are definitely those with a moat, but most game companies don’t have a moat. Few game companies make money, but game companies that make money can make a lot of money.
On the eve of Duan Yongping’s bottom reading, Buffett’s golden partner Munger also increased his holdings of Alibaba again. Since the first quarter of last year, Munger’s daily journal has continued to build positions in Ali. As of the end of September last year, daily journal held about 302000 shares of Alibaba US ADSS, an increase of about 136000 shares compared with the position at the end of June, and the position shares increased by more than 80%. By the fourth quarter, the position reached Shanghai Pudong Development Bank Co.Ltd(600000) shares, double that at the end of September.
On February 17 this year, Munger expressed his optimism about Alibaba and Chinese assets at the annual daily journal shareholders’ meeting.
As for why we are optimistic about China, Munger said: “China is a large modern country. It has such a huge population and has achieved such a huge modernization in the past 30 years. We have invested some funds in China because we can get more value in China than in the United States in terms of enterprise strength and securities prices.
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In addition, Munger also answered why he added Alibaba. Munger’s view is that Alibaba is highly competitive, even in the highly competitive retail field. “Investing in Alibaba is an investment decision that makes me feel comfortable.”
Allianz investment reducing “ningwang”
Due to the heavy position of Contemporary Amperex Technology Co.Limited(300750) , Allianz China Equity Fund has continued to achieve excellent performance in recent years. However, since December 2021, with the adjustment of Contemporary Amperex Technology Co.Limited(300750) and other new energy stocks, the performance of Allianz China A-share fund is relatively flat, with an overall return of 1.85% in 2021 and a negative return since 2022. Up to now, the return is – 8.17%.
Allianz Shenzhou A-share fund actively adjusted its position in the first year of 2022. During January, the fund reduced the holdings of some of its heavy positions in new energy stocks, Contemporary Amperex Technology Co.Limited(300750) , Yunnan Energy New Material Co.Ltd(002812) etc. were included in the reduction list, of which Contemporary Amperex Technology Co.Limited(300750) was reduced by 10.56% and Yunnan Energy New Material Co.Ltd(002812) was reduced by 12.23%.
Meanwhile, traditional financial stocks such as Citic Securities Company Limited(600030) , China Merchants Bank Co.Ltd(600036) and China Merchants Bank Co.Ltd(600036) gained more shares, and Citic Securities Company Limited(600030) increased by 15.29%, while China Merchants Bank Co.Ltd(600036) was 10.1%, while China stock market news, a leading Internet financial company, was reduced by 14.78%.
In fact, Allianz China A-share fund has been reducing its holdings of new energy stocks for some time. Since the second half of last year, Contemporary Amperex Technology Co.Limited(300750) , Yunnan Energy New Material Co.Ltd(002812) and others have been continuously reduced.
China’s public funds are also slightly reducing their holdings of new energy. According to China Industrial Securities Co.Ltd(601377) statistics, the new energy sector has continued to decline since December last year. Public funds increased their positions against the trend in the early stage, and their positions have fallen since January.
The positions recently announced by top flow fund managers such as Zhao Yi and Lin Sen also showed that some stocks in the new energy industry chain were reduced. In the fund’s four seasons report, Zhao Yi disclosed his views on industries such as photovoltaic and new energy vehicles. For the photovoltaic industry, Zhao Yi believes that at present, the price of silicon materials in the upstream has begun to loosen, and the price in other links has begun to decline. From the perspective of fundamentals, there continues to be a game between various links of the industry. Considering that the stock price has been ahead of the fundamentals and the valuation has been very high, the cost performance is relatively poor, Enterprises with core competitiveness can only be selected in a longer time dimension.
For new energy vehicles, Zhao Yi said that they still belong to the sector with very high certainty and growth rate. The production scheduling of leading enterprises in the whole battery industry chain is still at a high level. With the continuous expansion of the production capacity of front-line enterprises, the production scheduling is still improving month on month in the first quarter.
However, considering that next year, the production capacity of all links will begin to release one after another, and the balance between supply and demand will begin to reverse one after another. As for the enterprises transforming into new energy this year, they also face the problem of performance fulfillment, Zhao Yi believes that there will be differentiation from the perspective of sector. Considering that the battery link is in the resonance of multiple applications, it is necessary to choose companies with core competitiveness. (source: Securities Times)
