The recent repeated outbreak of covid-19 pneumonia overseas and the emergence of Omicron mutant strain have added uncertainty to the global economic recovery. The strong resilience of China's economy makes more foreign institutions optimistic about the Chinese market. As one of the first batch of foreign-funded institutions to enter China's local market, Fidelity International believes that under the background of setting the policy tone and returning to the goal of stable growth, China will unswervingly promote the supply side structural reform and activate the development momentum. It is expected that the monetary policy will remain relatively loose and independent, which will also increase the position of foreign capital in China's stocks and bonds.
Zhou wenqun, head of stock investment and fund manager of Fidelity International China, said that in 2022, in the face of the triple pressure of shrinking demand, supply shock and weakening expectations, the Chinese government has placed steady growth in a more important position. Especially since December 2021, intensive policy setting and corresponding loose policies have made more foreign-funded enterprises full of confidence in China's economic development in 2022. In contrast to overseas markets, after two years of massive liquidity investment by the global central banks, many countries will face the pressure of tightening monetary policy. The sharply expanded balance sheet of European and American central banks and the rising inflationary pressure limit the possibility of European and American governments easing again.
\u3000\u3000 "From the perspective of performance growth and valuation, we expect that China's A-share core assets are relatively attractive. This is also the reason for the continuous inflow of foreign capital since 2015. I believe this situation will continue. At the same time, in the field of growth stocks, foreign investors may pay more attention to the safety margin of valuation in 2022. In terms of sector layout, we are more optimistic about consumption, building materials Real estate chain and other sectors. " According to Zhou wenqun's analysis, in 2022, the long-term growth trend of China's consumer industry is relatively certain, and the profitability of the leading consumer enterprises will recover. With the narrowing of the increase of PPI and CPI, the profitability of the middle and lower reaches of consumer enterprises with strong bargaining power will recover. In addition, benefiting from China's supply side structural reform, there is still a lot of room for domestic substitution. There are also many investment opportunities in "specialized, special and new" enterprises, such as semiconductors, industrial coatings, mechanical parts and other sectors.
Cheng Hao, manager of fidelity international fixed income fund, also said that in 2022, international capital will continue to overweight China's bond market thanks to higher yields and the increased influence brought by the "embrace" of China's bonds by the world's three bond indexes. "As an indispensable part of China's capital market, the stock scale of the bond market reached 130 trillion yuan in mid December 2021, and the scale of medium - and long-term pure bond funds has also shown a growing trend in recent years. In addition, China's bonds have low correlation with other asset classes, which can provide better defense, so that China's bonds still have allocation value."
Cheng Hao also mentioned that with the orderly promotion of China's "double carbon" strategy and the policy of supporting green credit, the expansion of the green bond market will be further accelerated, and its issuance quantity and scale will continue to rise and increase year by year. "China's green bond market has broad development prospects and will continue to attract investors to increase allocation."
