Recently, the market shock has intensified, the valuation of A-Shares has fallen to a historically low quantile, and the attitude of institutional investors towards the market has attracted much attention.
The financial Commission recently said that it welcomes long-term institutional investors to increase their shareholding ratio. These long-term institutional investors have the characteristics of long investment cycle and stable investment style, and play an important role in improving the resilience of the capital market and leading economic transformation and upgrading.
In the shock market, how to grasp the market context and choose high-quality targets? At present, just in the 2021 annual report disclosure season, the trend of institutional positions may provide some reference for investors. Statistics show that during the reporting period, four long-term institutional investors, including social security funds, public funds, QFII and insurance funds, increased their holdings in industries such as electronics, medicine, biology and basic chemical industry.
blue chip stocks are still good for Social Security Fund
With the disclosure of the annual reports of Listed Companies in 2021, the shareholding trend of social security fund, which is regarded as the “investment vane” by value investors, has gradually surfaced. According to the data of China stock market news choice, as of the closing of March 18, among the A-share listed companies that have disclosed the annual report of 2021, the social security fund appeared in the list of the top 10 circulating shareholders of 38 companies.
From the perspective of shareholding changes, by the end of the fourth quarter of 2021, the social security fund had newly held 762018 million shares in 7 companies and increased its holdings of 491832 million shares in 11 companies. In addition, the positions of the social security fund in 7 companies remained unchanged, and the holdings of 13 other companies were reduced.
After the above position changes, the number of shares held by the social security fund in Cgn Power Co.Ltd(003816) ranks first in all positions. By the end of the fourth quarter of 2021, the social security fund held 167515200 shares. In addition, the social security fund holds more than 50 million shares in Guangdong Create Century Intelligent Equipment Group Corporation Limited(300083) , Ping An Bank Co.Ltd(000001) , Citic Pacific Special Steel Group Co.Ltd(000708) and other companies.
From the perspective of shareholding market value, by the end of the fourth quarter of 2021, the holding value of the social security fund to five stocks including Wanhua Chemical Group Co.Ltd(600309) (32643276 million yuan), Thunder Software Technology Co.Ltd(300496) (21287623 million yuan), Citic Pacific Special Steel Group Co.Ltd(000708) (11081917 million yuan), Guangdong Create Century Intelligent Equipment Group Corporation Limited(300083) (1063864 million yuan), Changchun High And New Technology Industries (Group) Inc(000661) (1050168200 yuan) exceeded 1 billion yuan.
Among the newly acquired shares, in the fourth quarter of last year, the social security fund held more than 10 million new shares in four stocks, including Xinjiang Zhongtai Chenical Co.Ltd(002092) , China Telecom Corporation Limited(601728) , Tianrun Industry Technology Co.Ltd(002283) , Triumph Science & Technology Co.Ltd(600552) . Among the increased shares, the social security fund has the largest increase in positions of Cgn Power Co.Ltd(003816) and Citic Pacific Special Steel Group Co.Ltd(000708) with the number of increased shares exceeding 10 million.
From the industry distribution of heavy positions of social security fund, 38 stocks are distributed in 15 Shenwan industries. Among them, the number of individual stocks in the electronics industry is the largest, reaching 9; The number of individual stocks in the basic chemical industry ranked second, reaching 7; The pharmaceutical and biological industry ranked third, with 4 stocks selected. From the industry distribution of newly increased holdings of individual stocks, electronics and basic chemical industry rank first, with 5 and 4 positions respectively.
Ma Cheng, chairman of juze investment, told the reporter of Securities Daily: “From the industry distribution of the social security fund’s holding stocks, the basic chemical industry is one of the heavy industries of the social security fund. Since last year, the basic chemical industry index has continued to fall, and the valuation bubble has basically been digested. At present, it is at a historically low absolute value and has great investment value. However, in the investment, we should also take into account the global energy and chemical industry price drop after the tightening of monetary policy by the Federal Reserve. Potential impact on health. “
Since March this year, as of the closing on March 18, 11 of the above-mentioned 38 heavy positions of social security funds have outperformed the Shanghai Stock Index (down 6.10% in the same period). Among them, Jiangyin Jianghua Microelectronics Materials Co.Ltd(603078) was the most outstanding, rising 21.62% against the market.
Among the 38 companies with heavy positions in the social security fund, 29 companies achieved a year-on-year increase in net profit in 2021, accounting for 76.32%. Among them, Xinjiang Zhongtai Chenical Co.Ltd(002092) 2021 had the highest year-on-year increase in net profit, reaching 176996%. In addition, the net profit of Shanghai Bright Power Semiconductor Co.Ltd(688368) (883.72%) and Zangger mining (523.60%) also increased by more than 500%.
Liu Cunxin, assistant manager of Rongzhi investment fund under private placement paipai.com, told the reporter of Securities Daily: “The social security fund has high requirements for the certainty of investment income and tends to realize the steady growth of income through long-term asset allocation. Therefore, the varieties favored by the social security fund often have the following characteristics: first, the industry is in a high business cycle and the certainty of future performance growth is high; second, the listed companies in the industry are expected to usher in performance improvement and the valuation has a margin of safety; third, on the premise of stable performance growth, the listed companies can Enough to continue to pay high dividends. In particular, the new varieties and holdings of social security funds usually have high long-term investment value, and the long-term market performance is often stronger than the market. “
Long Hao, chairman of Jinding assets, told the reporter of Securities Daily: “As the construction of China’s capital market system matures, the risk appetite of the social security fund has improved, and the income growth rate has also increased accordingly. After studying the positions of the social security fund over the years, it can be found that the investment targets favored by the social security fund are often medium and large market capitalization companies with the characteristics of undervalued value, excellent performance and high dividend. In addition, the social security fund will also patronize some emerging industries.”
qfii newly increased its holdings of 29 potential shares
In the fourth quarter of last year, overseas funds did not withdraw from the A-share market as rumored in the market, but gradually increased their holdings and oversubscribed Chinese assets. The change of QFII’s position in A-shares is the best example.
According to the data, as of the closing of March 18, 2022, among the A-share listed companies that have disclosed the annual performance of 2021, QFII appeared in the list of the top 10 circulating shareholders of 42 companies, with a total number of 269 million shares and a market value of 9.494 billion yuan. Compared with the end of the third quarter of last year, QFII increased its holdings of 29 A shares in the fourth quarter of last year, including 19 A shares and 10 A shares.
Not only that, Goldman Sachs also released a report this week, saying that based on good growth expectations, loose monetary policy, extremely low market valuation and low investor positions, it is still recommended to maintain “over matching the Chinese market”. Goldman Sachs believes that the current Chinese stock market is in the oversold stage. The fair P / E ratio of MSCI China should be 12.5 times, rather than the current 9.9 times. The current P / E ratio is the lowest in six years.
Among the 19 new shares held in the fourth quarter of last year, QFII held more than 10 million shares of Bestsun Energy Co.Ltd(600681) , Hengdian Group Dmegc Magnetics Co.Ltd(002056) and other two new shares, reaching 144887 million shares and 106499 million shares respectively.
In addition, QFII has more than 1 million newly acquired shares in six individual shares, including Triumph Science & Technology Co.Ltd(600552) , Chengdu Xuguang Electronics Co.Ltd(600353) , Tangshan Sunfar Silicon Industry Co.Ltd(603938) , Changzhou Galaxy Century Microelectronics Co.Ltd(688689) , Changchun Bcht Biotechnology Co(688276) , Fiyta Precision Technology Co.Ltd(000026) .
Among the 10 stocks increased in the fourth quarter of last year, QFII increased its holdings of Chongqing Zaisheng Technology Co.Ltd(603601) the most, reaching 7.309 million shares. In addition, QFII also increased its holdings of three individual shares, including Shandong Hongchuang Aluminum Industry Holding Company Limited(002379) , Bloomage Biotechnology Corporation Limited(688363) , Ningbo Yunsheng Co.Ltd(600366) and more than 2 million shares.
The good performance of listed companies is still an important driving force for foreign capital to increase its holdings. Statistics show that among the 42 listed companies held by QFII, 33 companies’ net profit increased year-on-year in 2021, accounting for nearly 80%. Among them, the net profit of 11 companies doubled year-on-year in 2021.
The share price performance of QFII heavyweight stocks since March this year is also commendable. The share price performance of 20 stocks outperformed the Shanghai Stock Index (a cumulative decline of 6.10%), accounting for nearly 60%. Among them, Shanghai Kaikai Industry Company Limited(600272) , Tangshan Sunfar Silicon Industry Co.Ltd(603938) , Anhui Huaqi Environmental Protection&Technology Co.Ltd(300929) , Beijing Huafeng Test & Control Technology Co.Ltd(688200) and other four stocks performed well, with a cumulative increase of more than 10% during the period.
From the perspective of industry distribution, the 42 stocks held by QFII involve 19 Shenwan industries. Among them, the number of selected stocks in electronics, medicine and biology and non-ferrous metals ranks first, with 7, 5 and 4 respectively. From the industry distribution of QFII’s newly increased holdings of individual shares, the above three industries still rank in the top three, and the number of individual shares held by QFII is 5, 5 and 4 respectively.
As of the end of the fourth quarter of last year, QFII held seven electronic stocks. Among them, five electronic stocks, including Avary Holding (Shenzhen) Co.Limited(002938) , Triumph Science & Technology Co.Ltd(600552) , Chengdu Xuguang Electronics Co.Ltd(600353) , Changzhou Galaxy Century Microelectronics Co.Ltd(688689) , Beijing Huafeng Test & Control Technology Co.Ltd(688200) have become the key varieties of QFII’s new holdings.
In this regard, Wang Chunxiu, manager of dongtuo investment fund, said in an interview with the reporter of Securities Daily, “the chip, semiconductor power devices and their upstream raw materials industries in the electronic sector benefit from the rapid development of new energy vehicles, wind power and photovoltaic industries. The relevant listed companies not only have high performance growth, but also have good sustainability, have good investment value, and deserve special attention.”
At the same time, the pharmaceutical and biological industry is still one of the industries favored by QFII. In the fourth quarter of last year, five pharmaceutical stocks including Changchun Bcht Biotechnology Co(688276) , Iray Technology Company Limited(688301) , Shandong Wohua Pharmaceutical Co.Ltd(002107) , Shanghai Kaikai Industry Company Limited(600272) , Beijing Sun-Novo Pharmaceutical Research Co.Ltd(688621) , etc. gained the support of QFII.
Chen Li, chief economist and director of the Research Institute of Chuancai securities, who was interviewed by the reporter of Securities Daily, said, “Since the beginning of this year, the A-share market has fluctuated significantly, but the performance of the pharmaceutical and biological sector has been relatively stable. The valuation of some leading stocks has been relatively reasonable after last year’s correction. As of March 16, the State Food and drug administration has approved 12 covid-19 virus antigen detection reagent products. It can be seen that covid-19 antigen detection is widely used, the detection demand continues to increase, and the market scale is large, which will drive the rapid development of relevant industrial chains and relevant enterprises will continue to develop Usher in new development space. “
In addition, Hengdian Group Dmegc Magnetics Co.Ltd(002056) , Shandong Hongchuang Aluminum Industry Holding Company Limited(002379) , Ningbo Yunsheng Co.Ltd(600366) , Sinomag Technology Co.Ltd(300835) and other four non-ferrous metal stocks were also newly added or increased by QFII in the fourth quarter of last year. Chen Li believes that with the support of the “steady growth” policy, new and old infrastructure will work together to form a strong support for the demand for non-ferrous metals. In addition, affected by the continuous rise of global inflation, geographical conflicts and other uncertain factors, commodity prices also continued to rise, providing effective support for the substantial growth of the performance of relevant enterprises in the first quarter of this year.
“The nonferrous metals industry that QFII is optimistic about is a cyclical industry and is currently in a high boom cycle. However, in the stock market, when the cyclical industry is in a high outlook, it is often the best time to sell.” Liu Youhua, research director of private placement network, expressed his unique views on the non-ferrous metal industry.
public fund layout four industries
As of the closing on March 18, the disclosed data of the fund’s 2021 fourth quarter report and the 2021 annual report of listed companies showed that by the end of the fourth quarter of last year, a total of 2334 A shares had been held by public funds, with a total shareholding of 89.632 billion shares.
After combing the relevant data, the reporter of Securities Daily found that by the end of the fourth quarter of last year, the positions of public funds in 204 A shares had exceeded 100 million shares. Among them, Focus Media Information Technology Co.Ltd(002027) , China stock market news, Poly Developments And Holdings Group Co.Ltd(600048) and other three stocks of public funds ranked first, with 1.876 billion shares, 1.699 billion shares and 1.36 billion shares respectively.
In terms of the changes in the heavy positions of the fund, 1263 shares were newly purchased and increased by the public fund in the fourth quarter of last year, and the number of shares of 30 shares increased by the fund exceeded 100 million. Among them, Wintime Energy Co.Ltd(600157) , Luxshare Precision Industry Co.Ltd(002475) , Huaneng Power International Inc(600011) , Jiangsu Zhongtian Technology Co.Ltd(600522) and other four stocks were increased by public funds in the fourth quarter of last year, with the number of shares exceeding 300 million.
Blue chip stocks are still favored by public funds. Among the above 2334 fund heavyweight stocks, 178 companies have issued annual reports for 2021. Among them, 133 companies achieved year-on-year growth in net profit last year, accounting for more than 70%. 638 companies have released the annual performance express for 2021, and nearly 80% of the companies achieved year-on-year growth in net profit last year.
From the perspective of industry distribution, the high boom industry is still the focus of the layout of public funds. According to the classification of shenwanyi industry, there are the largest number of listed companies held by public funds in the four major industries of medicine and biology, mechanical equipment, electronics and basic chemical industry, with 235, 222, 215 and 172 respectively.
Yuan Huaming, general manager of Huahui Chuangfu investment interviewed by the reporter of Securities Daily, said that pharmaceutical biology, mechanical equipment, electronics and basic chemical industry are several industries with outstanding business performance since the outbreak. In the past two years, they have been concentrated by institutional funds, and the performance of relevant sectors and individual stocks is also relatively bright. Therefore, they have attracted more attention and pursuit of institutional investors, including public funds.
In an interview with the reporter of Securities Daily, Liu Yan, chairman of anjue assets, said that from the position of public funds at the end of the fourth quarter of last year, the manufacturing industry still ranks first, indicating that the investment concept of public funds is more in line with the national industrial policy adjustment direction of “getting rid of falsehood to reality”.
In terms of market performance, since March this year, 829 of the 2334 fund heavy positions have outperformed the Shanghai stock index over the same period (a cumulative decline of 6.1% during the period), accounting for 35.52%. Among them, China Meheco Group Co.Ltd(600056) performed best, with a cumulative increase of 202.09% during the period. Followed by Ningbo Menovo Pharmaceutical Co.Ltd(603538) and Zhejiang Construction Investment Group Co.Ltd(002761) , up 87.78% and 79.49% respectively. In addition, Shanghai Labway Clinical Laboratory Co.Ltd(301060) , Jiangsu Sinopep-Allsino Biopharmaceutical Co.Ltd(688076) , Zhejiang Ausun Pharmaceutical Co.Ltd(603229) , Fine Made Microelectronics Group Co.Ltd(300671) and other four stocks also increased by more than 40% during the period.
In terms of investment opportunities, Liu Yan said that the fundamentals of the pharmaceutical industry have not deteriorated substantially. After a long-term adjustment of the stock price, the investment cost performance has been highlighted. At present, the market consensus has been reached on the localization of biopharmaceuticals and the development of innovative drugs, and the pharmaceutical industry is facing huge investment opportunities in the future. The electronics industry has always been the favorite of public fund managers for asset allocation. Semiconductors, apple industrial chain, consumer electronics, digital computing from east to west, automotive electronics rising with new energy vehicles, and VR industrial chain driven by meta universe will be hot tracks in the future. In addition, in the context of increasing global inflation, the basic chemical industry will also be favored by public funds.
new venture capital holdings of 12 shares
According to the data, as of the closing on March 18, a total of 290 A-share listed companies disclosed their 2021 annual reports. Among them, the top ten circulating shareholders of 23 listed companies have insurance capital, accounting for 7.93%.
In terms of the ranking of the stock market value held by insurance assets, Ping An Bank Co.Ltd(000001) was temporarily ranked first with 185320 billion yuan held by insurance assets, accounting for 91.30% of the stock market value held by insurance assets in the company’s annual report of 2021 China United Network Communications Limited(600050) followed, with the value of the stock market held by insurance assets reaching 12.538 billion yuan. In addition, Henan Liliang Diamond Co.Ltd(301071) , Guocheng Mining Co.Ltd(000688) , Sichuan Jiuyuan Yinhai Software Co.Ltd(002777) , Ningxia Baofeng Energy Group Co.Ltd(600989) , Sinoma Science & Technology Co.Ltd(002080) , Guangdong Provincial Expressway Development Co.Ltd(000429) , Jinlei Technology Co.Ltd(300443) and other stocks held by insurance assets have stock market values exceeding 200 million yuan.
In terms of new entrants and holdings, in the fourth quarter of last year, new entrants of insurance capital increased their holdings of 12 stocks. Among them, there are six new venture capital stocks, including Chongqing Fuling Zhacai Group Co.Ltd(002507) , Jiangsu Xinquan Automotive Trim Co.Ltd(603179) , Hangzhou First Applied Material Co.Ltd(603806) , shengmei Shanghai, Espressif Systems (Shanghai) Co.Ltd(688018) , Jiangsu Jiuwu Hi-Tech Co.Ltd(300631) . In addition, the number of additional shares held by insurance capital in three individual shares, including Jinlei Technology Co.Ltd(300443) , Zhejiang Windey Co.Ltd(300772) , Henan Liliang Diamond Co.Ltd(301071) , exceeded 1.9 million. From the perspective of industry distribution, the newly added or increased stocks of salary are mainly concentrated in several industries such as power equipment, electronics, food and beverage, environmental protection and so on.
Chen Li, chief economist of Chuancai securities and director of the Research Institute, told the reporter of Securities Daily that the insurance capital is mainly long-term value investment, the investment style is cautious, and prefers listed companies with high prosperity, large market value, excellent performance and good growth in the future. After the overall correction in the early stage, some individual stocks of insurance capital layout have entered a reasonable range of valuation. Investors can actively pay attention to and bargain hunting layout according to their own investment preferences.
Since March this year, the overall performance of insurance capital heavy warehouse stocks has been good. Among them, Hangzhou First Applied Material Co.Ltd(603806) , Henan Liliang Diamond Co.Ltd(301071) , Jiangsu Xinquan Automotive Trim Co.Ltd(603179) , Guangdong Provincial Expressway Development Co.Ltd(000429) , have increased to varying degrees Zhejiang Windey Co.Ltd(300772) , shengmei Shanghai, Guocheng Mining Co.Ltd(000688) , Changchun Bcht Biotechnology Co(688276) , China United Network Communications Limited(600050) and others did not rise against the market, but still outperformed the market in the same period.
Good performance is still the cornerstone of stock price rise. After combing, the reporter of Securities Daily found that among the above 23 heavy positions of insurance capital, 18 companies realized an increase in the net profit attributable to the parent company in 2021, accounting for 78.26%. Among them, the net profit attributable to the parent company of Henan Liliang Diamond Co.Ltd(301071) (228.17%), Zhejiang Windey Co.Ltd(300772) (183.13%) and Tangshan Sanyou Chemical Industries Co.Ltd(600409) (133.04%) doubled year-on-year The latest dynamic P / E ratios of five heavily held stocks, including Ningxia Baofeng Energy Group Co.Ltd(600989) , Sinoma Science & Technology Co.Ltd(002080) , Tangshan Sanyou Chemical Industries Co.Ltd(600409) , Guangdong Provincial Expressway Development Co.Ltd(000429) , Ping An Bank Co.Ltd(000001) , are lower than the latest valuation of A-Shares (17.25 times).
Among the 23 heavily held stocks of insurance capital, 20 stocks have been given optimistic ratings such as “buy” or “overweight” by institutions in the last 30 days, accounting for more than 80%. Among them, Eastroc Beverage (Group) Co.Ltd(605499) , Ping An Bank Co.Ltd(000001) , Henan Liliang Diamond Co.Ltd(301071) , Chongqing Fuling Zhacai Group Co.Ltd(002507) , Ningxia Baofeng Energy Group Co.Ltd(600989) , China United Network Communications Limited(600050) , shengmei Shanghai and other seven stocks are favored by 10 or more institutions.
