On February 28, the situation in Russia and Ukraine escalated, and A-Shares turned red against the trend in the afternoon. The Shanghai Composite Index closed up 0.32%, the Shenzhen composite index closed up 0.32%, and the gem index closed up 0.89%.
The familiar scene was staged again, and the North rushed to raise funds at the end of the trading. Near the closing, if considering the outstanding trading volume of pending orders, the net inflow of northbound funds once exceeded 10 billion yuan, reaching 13.261 billion yuan. However, most of the pending orders were not closed. Data show that on February 28, the net inflow of funds from the North was 2.047 billion yuan.
what’s going on
On February 9, MSCI announced the quarterly index adjustment, and nine stocks were transferred into the MSCI global standard index series. Overseas passive index funds will adjust the layout of these stocks along with the index, and the adjustment will close on February 28, that is, take effect today.
According to the announcement of MSCI, according to the announcement of MSCI, the newly included stocks include China Energy Engineering Corporation Limited(601868) \\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\.
Many of the newly included stocks changed at the end of the day.
For example, the wind power faucet – China Three Gorges Renewables (Group) Co.Ltd(600905) , which rose in volume at the end of the trading, closed at 7.13 yuan, up 2.74%.
China Three Gorges Renewables (Group) Co.Ltd(600905) this new entry was included in the MSCI flagship index.
Trina Solar Co.Ltd(688599) soared 7.32% in the listing of Kechuang board, another photovoltaic leader, which also showed a rise near the closing. Tianhe Guangneng also happens to be the newly included stock this time.
Another newly included stock Cngr Advanced Material Co.Ltd(300919) also showed a late rise, with Cngr Advanced Material Co.Ltd(300919) closing up 5.82%.
Home appliance leader Gree Electric Appliances Inc.Of Zhuhai(000651) although it closed slightly lower today by 1.08%. However, there was also a significant volume in the late trading. After being bought out in 2020 and eliminated by MSCI, Gree Electric Appliances Inc.Of Zhuhai(000651) was included by MSCI again after a one-year observation period.
As of February 25, the net inflow of northbound funds in 2022 was 18.707 billion yuan. In the last seven days of the last seven days, the northnorthnorth has seen a net net inflow of capital from the north in the last seven days, and the last seven days of the last seven days of the north north. Stocks that have more money flowing into the net net net from the North include China Pacific Insurance (Group) Co.Ltd(601601) 899\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\ Inner Mongolia Yili Industrial Group Co.Ltd(600887) . New energy vehicles and new energy related concept stocks re attract capital inflows.
overseas Russian ETFs continue to attract gold
The situation in Russia and Ukraine is escalating, and funds are pouring into safe haven assets.
For example, GLD, the world’s largest gold ETF, has realized a net capital inflow of US $3.231 billion as of February 24, 2022.
GLD is the world’s largest gold ETF, with the latest scale of US $63 billion, equivalent to RMB 397.6 billion. It is issued by SPDR, an ETF brand under State Street Global, an asset management giant. Since 2022, the net value of ETF has increased by 8.55%.
At the same time, RSX, the largest Russian ETF listed in the United States, is still attracting net capital inflows. In the escalation of the situation last week, from February 21 to February 25, RSX attracted a net inflow of US $121 million. On February 24, when the situation escalated, funds were still flowing in. RSX is the largest Russian ETF in the US stock market, with the latest scale of US $1.26 billion.
It is worth noting that overseas ETFs generally attract capital inflows for two reasons. First, bottom reading funds are bought based on valuation considerations. Second, short capital operation. According to a quantitative investor of public funds, short selling institutions can first borrow securities, then sell ETFs, wait until the stock price falls, then buy and return securities to close their positions. Therefore, ETF attracts net capital inflows, which may also be the rise of short interest.
China’s second largest overseas equity fund in January plus Tongwei Co.Ltd(600438)
Information from Morningstar shows that the latest scale of “JPMorgan Funds – China A-share Opportunities Fund I (ACC) – HKD”, the second largest overseas Chinese equity fund, is about 46 billion yuan. In January, the fund slightly increased its position of Tongwei Co.Ltd(600438) . After the increase, Tongwei Co.Ltd(600438) ranked the fifth largest heavy position stock. In the same period, the fund slightly reduced its holdings of Contemporary Amperex Technology Co.Limited(300750) , Wuliangye Yibin Co.Ltd(000858) , and significantly reduced its holdings of Midea Group Co.Ltd(000333) . As of the end of January at the end of January, at the end of January, the top ten heavy warehouse shares of the fund, as of the end of January, at the end of January, the top ten heavy warehouse shares of the fund are 3 Beijing Zznode Technologies Co.Ltd(003007) 50 \\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\.
overseas 4th largest China Equity Fund
greatly increase the position of Tencent holdings
JPMorgan Funds – China fund a (dist) – another Chinese Equity Fund under Morgan, with the latest scale of USD 6.175 billion, is the fourth largest Chinese Equity Fund in the world. In January, the fund increased its positions in a large scale, and Tencent holdings increased its positions by as much as 100%. In the same period, the fund reduced its holdings of Alibaba, another Internet leader, by 18.93%. In the same period, it also reduced its holdings of country garden, a real estate leader, by 2.51%. In addition to Tencent holdings, the fund also increased its positions in meituan and Yaoming biotechnology.
By the end of January, the top ten heavyweight stocks of the fund were Tencent holdings, meituan, Alibaba, China Merchants Bank Co.Ltd(600036) , Yaoming biotechnology, Netease, China Resources Vientiane life, Ping An Insurance (Group) Company Of China Ltd(601318) , country garden, etc.
overseas fifth largest Chinese Equity Fund
warehouse adding household appliance faucet
Different from the second largest overseas Chinese stock fund, the fifth largest overseas Chinese stock fund chose to increase its positions in the leading household appliances in the same period.
Schroders ISF China a, the European giant Schroder investment’s Schroders international select fund, has the latest scale of US $5.282 billion, making it the fifth largest overseas Chinese Equity Fund.
Recently, the fund updated its position at the end of January. At the end of the first quarter, the top three heavy positions of the fund were Ping An Insurance (Group) Company Of China Ltd(601318) , China Merchants Bank Co.Ltd(600036) , Oppein Home Group Inc(603833) .
In January, the fund increased the positions of Midea Group Co.Ltd(000333) , Oppein Home Group Inc(603833) and China Jushi Co.Ltd(600176) . The top ten stocks in the heavy positions have not been reduced.
UBS: raise Chinese stocks to optimistic
UBS wealth management investment director’s Office (CIO) issued an institutional view that the Federal Reserve will hold a monetary policy meeting on March 15. It is expected that the US interest rate hike cycle will start. Coupled with the high geopolitical risks in Eastern Europe, the Asia Pacific currency is expected to weaken relative to the US dollar in the short term, but it is estimated that it will tend to be stable in the second half of the year. Investors can consider keeping a long position in the US dollar, especially relative to currencies negatively affected by commodity prices and rising US interest rates.
Tactically optimistic about Chinese stocks. China’s economy is expected to rebound before April, driving the profit recovery of Chinese enterprises in the summer. In addition, the geopolitical tension in Eastern Europe and the acceleration of global inflation have raised risk aversion. Compared with other stock markets, China’s stock market may show greater resilience. In the Asian asset allocation strategy, Chinese stocks have been upgraded to bullish.
UBS wealth management investment director’s office said that the analysis of technical factors also shows that China is one of the most oversold markets in Asia, and its risk sentiment has been relatively improving. In addition, global mutual funds do not hold many positions in offshore Chinese stocks, which strengthens the view of tactical optimism about China’s stock market.
In China’s stock market, consumer durables and services are preferred, as consumption is expected to recover this year with the gradual lifting of epidemic prevention restrictions and further easing of monetary policy. In addition, smart infrastructure, network security, downstream wind power operators and electric vehicle battery supply chain all benefited from favorable policies.
Two European asset managers also expressed the importance of diversifying investment in uncertainty. They pointed out that the importance of Chinese assets as an asset class that can hedge other market risks has increased. Dongfang Huili Group, Europe’s largest asset management organization, recently expressed the view that the market underestimated the situation in Russia and Ukraine and is currently adjusting the pricing of this risk. Dongfang Huili believes that because the market still needs time to understand the full impact of the event, it is not time to copy the bottom. Dongfang Huili believes that Chinese assets are of great importance in an environment of soaring uncertainty. A fund manager from Aberdeen investment also expressed similar views in a recent interview. As a role in dispersing portfolio risk, Chinese assets are of great importance.
