Recently, China concept stocks have experienced a new round of falling storm. Since the beginning of 2021, the overall cumulative decline of zhonggai shares has been huge, and the cumulative decline of many stocks has exceeded 90%. According to rough calculation, the cumulative market value of zhonggai company has shrunk by more than $1 trillion (equivalent to more than 6.3 trillion yuan) from the high market value in 2021.
After the sharp decline, how to view the opportunities and risks, institutional trends and views?
zhonggai stocks experienced a new round of decline, and many stocks fell more than 90% from last year's high
On March 11, Didi plummeted 44% and fogcore technology plummeted 36%. Before that, on March 10, Yixian e-commerce plummeted 39.5%, shell plummeted 23.9% and iqiyi plummeted nearly 22%. Recently, China concept stocks have experienced a new round of decline.
On the whole, since 2021, China concept stocks have experienced several rounds of decline, with a tragic overall decline, and the cumulative decline of many stocks is amazing.
According to the statistical caliber of wind data, among the 272 Chinese private shares listed in the United States, 244 shares have fallen since 2021, accounting for about 90%. Among them, 178 shares have fallen by more than 50%, accounting for nearly 2 / 3, of which 31 shares have fallen by more than 90%, accounting for more than 10%.
If the statistics show the biggest decline since the highest level since 2021, the adjustment range will be even greater.
The cumulative decline of some large-scale zhonggai companies during the period is also very amazing, such as pinduoduo, shell, Didi travel and iqiyi. The cumulative decline has exceeded 80% since 2021. Among the companies with a market value of more than US $1 billion, tal, Wuxin technology, New Oriental, new egg, Jinshan cloud, graffiti intelligence, Didi travel, iqiyi and other companies have experienced the largest decline of more than 90% since 2021.
With the sharp decline in share prices, the value of China's stock market listed in the United States has also shrunk sharply. According to wind's rough statistics, since the high level in 2021, the total market value of Zhonggu private companies listed in the United States has shrunk by more than $1 trillion (equivalent to more than 6.3 trillion yuan).
greatly adjusted mechanism
China's stock price adjustment and intensity of adjustment have been comparable to the collapse of the US stock net stock bubble in the early twenty-first Century.
At the beginning of the 21st century, the decline of Chinese science and technology network stocks listed in the United States was also very amazing, and the cumulative decline of multiple stocks exceeded 90%. At that time, the collapse of the stock bubble of China's general stock network was not clear because of unclear profit prospects, and the business mode had not yet been run through. In addition, some regulatory policies were also introduced.
In September 2000, the State Council issued the regulations of the people's Republic of China on telecommunications. On the same day, the State Council promulgated and implemented the measures for the administration of Internet information services.
Within one month after the issuance of the management measures, Sina's share price fell by more than 50%, and the shares of Netease and Sohu also fell sharply. Since then, the share price has fluctuated at a low level for more than a year. However, it was later found that this period of time has become the lowest point in the history of the stock prices of the above-mentioned companies, and the stock prices have ushered in an explosive rise.
Recently, the securities and Exchange Commission of the United States (SEC) listed five Chinese companies in the tentative list of the foreign company Accountability Act (hfcaa), which also affected the overall performance of China concept shares and exacerbated the decline of related stocks.
The China Securities Regulatory Commission (CSRC) responded to the fact that the US Securities Regulatory Commission (SEC) identified five listed companies in the US as "relevant issuers" with delisting risk according to the foreign company Accountability Act.
The CSRC said that we have noticed this situation. This is a normal step for US regulators to implement the foreign company Accountability Act and relevant implementation rules. We have previously expressed our attitude on the implementation of the foreign company accountability law for many times. We respect that overseas regulators strengthen the supervision of relevant accounting firms in order to improve the quality of financial information of listed companies, but we firmly oppose the wrong practice of some forces to politicize securities supervision. We have always adhered to the spirit of openness and cooperation, and are willing to solve the inspection and investigation of relevant firms by the US regulatory authorities through regulatory cooperation, which is also in line with the international practice.
The CSRC said that recently, the CSRC and the Ministry of finance have continued to carry out communication and dialogue with the US public company accounting supervision board (PCAOB) and made positive progress. We believe that through joint efforts, the two sides will be able to make cooperative arrangements in line with the legal provisions and regulatory requirements of the two countries as soon as possible, jointly protect the legitimate rights and interests of global investors and promote the healthy and stable development of the markets of the two countries.
Huatai Securities Co.Ltd(601688) 's research point of view is that in 2021, the stricter regulation of China's Internet sector has put pressure on the valuation and performance of the sector in the short term, but the regulation is not intended to limit the development of the Internet, but to provide clearer guidance for the long-term sustainable development of the Internet. The agency believes that the impact of regulation has been fully reflected in the current valuation and performance of zhonggai Internet sector. Looking forward to 2022 and the long-term development trend of the industry, Huatai Securities Co.Ltd(601688) believes that zhonggai Internet sector will focus on new growth points (enterprise Internet, sea expansion, sinking market, etc.) to drive the performance growth to accelerate again. In January 2022, the State Council officially announced China's first national special plan for digital economy, the "14th five year plan" for digital economy development, which defined the policy support attitude for digital economy and Internet related industries. On the premise of compliance, the Internet industry is expected to achieve long-term sustainable profit growth.
institutions added positions of zhonggai shares at the end of last year
After the substantial adjustment of the stock price since 2021, some domestic and foreign institutions have made some bottom reading actions for zhonggai company. For example, Munger, the partner of "stock god" Buffett, added positions to Alibaba for several consecutive quarters in 2021. 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.
According to the U.S. stock position data at the end of 2021 previously released by hhlr advisors, hhlr's investment team continued to increase its position in new energy in the fourth quarter, including a large increase in the position of ideal automobile, holding an additional 3.92 million shares to 5.073 million shares, with a market value of US $160 million. This makes ideal automobile enter the top ten heavy positions of hhlr US stocks for the first time. However, at the same time, the investment team of Hillhouse hhlr also cleared Alibaba and station B in the fourth quarter of last year. At the same time, pinduoduo was significantly reduced by Hillhouse. Pinduoduo's shareholding was reduced from 2.81 million shares to 213000 shares, and withdrew from the top ten heavy positions.
For the position adjustment of the above Internet giants, Hillhouse explained that it has successively established positions in BiliBili and pinduoduo since 2018. By the end of the fourth quarter of 2021, the share prices of the above two companies had recorded a large increase, so they adjusted their positions.
On the contrary, qiaoshui operation increased its positions in Ali, jd.com and pinduoduo in the fourth quarter of last year, with an increase of 29%, 33% and 38% respectively, and slightly reduced its holdings of ideal cars.
In addition, Jinglin also increased its positions in many leading Chinese Internet companies against the trend in the fourth quarter of last year. Among them, it increased its holdings of pinduoduo from 704600 shares to 2.71 million shares, with a market value of US $158 million at the end of the period; Increased holdings of 510200 shares to 1265400 shares in JD, with a market value of US $158 million at the end of the period; The company increased its holdings of 744000 direct employment shares of the boss, and the value of the stock market at the end of the period rose to US $72 million.
