Since this year, the investment of foreign-funded institutions in the A-share market has shown a diversified trend, and more and more new targets have entered the investment vision of foreign-funded institutions.
In the view of many investors of foreign-funded institutions, in the face of the A-share market with comprehensive industry distribution and endless investment opportunities, foreign-funded institutions need to constantly expand the scope of research and investment. Compared with other mature markets, the A-share market can tap more alpha opportunities through in-depth fundamental analysis.
diversification trend of A-share investment subject
"Since the beginning of this year, the targets of foreign-funded institutions' A-share investment have diversified. Foreign-funded institutions used to believe that China's most dynamic growth companies, such as Internet companies, are listed abroad, so their overseas investment has met their needs to invest in the Chinese market. However, with the change of China's economic structure, it is difficult to meet their needs only to invest in overseas listed Chinese stocks Therefore, the A-share targets selected by overseas investors are more and more diversified. " Zhu Liang, investment director of LianBo China, said.
According to statistics, since this year, some bank stocks have been bought by foreign investors. Take Bank Of Ningbo Co.Ltd(002142) as an example, as of December 24, northbound funds held Bank Of Ningbo Co.Ltd(002142) 376 million shares, a significant increase of more than 80% compared with 200 million shares at the beginning of the year. In addition, the shareholding ratio of northbound funds to Bank Of Guiyang Co.Ltd(601997) , Postal Savings Bank Of China Co.Ltd(601658) , Bank Of Zhengzhou Co.Ltd(002936) , Bank Of Changsha Co.Ltd(601577) and other bank shares increased significantly.
"Value stocks such as banks have become the focus of foreign institutions. According to our observation, in the past, foreign institutions tended to invest in growth style stocks in emerging markets. However, since this year, the concentration of foreign institutions' investment in A-Shares has decreased, and value stocks have begun to become the new focus of attention." Said a fund manager of a foreign-funded institution in Shanghai.
According to the data of East Money Information Co.Ltd(300059) choice, by the end of the third quarter of 2021, QFII had appeared on the list of the top ten circulating shareholders of 667 A shares; At the end of last year, the number was 545. This shows that since this year, more than 100 stocks have entered the investment vision of foreign-funded institutions for the first time.
China International Capital Corporation Limited(601995) said in a research report that with the deepening of foreign institutions' understanding of the A-share market and in line with the general trend of China's consumption upgrading and industrial upgrading, their investment scope will gradually expand.
you can't just focus on new energy
In the view of many foreign-funded institutions, the A-share market has a comprehensive industry distribution and alpha opportunities unmatched by other markets in the world. Therefore, foreign-funded institutions need to constantly expand the scope of research and investment.
"Taking the constituent stocks of CSI 300 index and S & P 500 index as an example, it is difficult to find the expected difference in the US stock market. More than 70% of the companies' profits are within the forecast range, so it is difficult to obtain alpha income. In the A-share market, although there are many consensus, 60% of the companies' profits are not within the forecast range. Therefore, if we can conduct in-depth bottom-up research If we catch these poor expectations, we have the opportunity to create more alpha earnings. " Zhu Liang said.
In the recently released A-share investment strategy, a number of foreign-funded institutions said that in addition to new energy with high prosperity, other industries or themes including consumption, medical treatment, new infrastructure, localization of science and technology and sustainable development also deserve attention.
"In the long run, new energy is an important investment direction. However, China cannot only rely on new energy to support all economic growth, so our portfolio will also look for other industries that can promote stable economic growth, although these industries may not develop as fast as new energy." Meng Ning, director of China equity investment at lubemaker, said. He said that industries that can promote stable economic growth such as consumption and medical treatment have long-term investment opportunities.
Jiang Zhenghao, equity investment manager of baring China, believes that China's incentive policies in promoting economic transformation and upgrading, scientific and technological innovation and improving environmental awareness are beneficial to industries and themes such as new infrastructure, consumption, health care and science and technology.
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(Shanghai Securities News)
