At present, the fluctuations in the global financial market, including A-Shares and Hong Kong shares, continue to amplify. In particular, the foreign capital represented by northbound funds has shown a significant net outflow of A-Shares in recent trading days (see “what foreign capital has been doing in A-Shares recently” on March 9 and “resumption of six foreign capital outflows” on March 14). In this article, we selected 10 most representative institutions among the “top stream” of the three types of global investment institutions: pension funds, sovereign wealth funds and asset management institutions to sort out their allocation in China’s stock market.
Sovereign wealth funds: 1) Norway Global Pension (GPFG) is the largest sovereign wealth fund in the world. The current stock position covers 676 listed companies in Chinese mainland, with a total holding scale of about 38 billion US dollars, and the position of the stock market is seventh in all countries. The configuration is concentrated in the financial and consumer fields, and the positions in TSMC, Tencent holdings, Alibaba, AIA and meituan comment account for more than half of the whole China region. 2) the third largest sovereign wealth fund in the world, the Abu Dhabi Investment Bureau (ADIA), currently holds about 1 billion 700 million US dollars in Chinese mainland listed companies, accounting for about 20% of the total stock positions. The industry configuration is more energy intensive, financial, medical and other industries, and heavy positions include China Stock Market News, Xinjiang Daqo New Energy Co.Ltd(688303) , Semiconductor Manufacturing International Corporation(688981) , Wuxi Lead Intelligent Equipment Co.Ltd(300450) and China International Capital Corporation Limited(601995) . 3) The investment authority of Singapore (GIC), the world’s sixth largest sovereign fund, mainly invests in Chinese listed companies through Hong Kong stocks, preferring life sciences and technology industries; Among China’s top 10 heavyweight stocks, there are seven Hong Kong stocks, including Sinopec and China Telecom Corporation Limited(601728) etc. the key layout of A-Shares includes growth industries such as electronics, communication and automobile. 4) Temasek, the world’s 11th largest sovereign fund, has always allocated more than 20% of its portfolio to China. As of the third quarter of 2021, China’s regional allocation accounted for 27%, 24% higher than that of Singapore. The industrial allocation is concentrated in the fields of science and technology and medical treatment, mainly through holding zhonggai shares for investment in the Chinese market, while the investment in A-Shares is mainly through its wholly-owned asset management company. Among China concept stocks, Temasek holds Alibaba and Baiji Shenzhou in heavy positions, and Hangzhou Tigermed Consulting Co.Ltd(300347) and Aier Eye Hospital Group Co.Ltd(300015) .
Pension: 1) the allocation market value of the world’s largest pension – Japanese government pension (GPIF) to China has increased year by year. In 2020, it invested 1.78 trillion yen in Chinese stocks, accounting for 1.90% of the total stock assets. The allocation is mainly concentrated in the financial and information technology industries. The top 50 Chinese listed companies currently held are mainly Hong Kong stocks such as Tencent holdings and AIA, and only Kweichow Moutai Co.Ltd(600519) , Contemporary Amperex Technology Co.Limited(300750) appear in the list of the top 50. 2) Cppib, the world’s seventh largest pension fund, has 199 Chinese companies in the shareholding list in fiscal year 2021, with a market value of about $20.58 billion, accounting for about 40% of its positions in emerging markets. It is basically in the two fields of optional consumption and information technology. Tencent holdings, Midea Group Co.Ltd(000333) , Alibaba and meituan comment rank high in the position list.
Asset management institutions: BlackRock, JPMorgan Chase, pioneer pilot and fidelity group currently hold about 2% – 3% positions in Chinese companies, and prefer finance, communication, non essential consumer goods, technology and other industries. At the individual stock level, the top ten Chinese companies with heavy positions of asset management institutions have a high degree of coincidence, with heavy positions in Tencent holdings, Alibaba, AIA, meituan comments, etc.
Risk tip: the conflict between Russia and Ukraine escalated, overseas interest rate hikes exceeded expectations, and the spread of the epidemic exceeded expectations.
