In the "post-epidemic" period, thanks to the large scale and potential of China's consumer market, the role of consumption as the main driving force of economic growth in China continues to appear, and under the general trend of domestic economic level and national trend, domestic consumers' sense of identity with domestic brands is increasing year by year, and consumption growth is expected. The consumer sector in which Hong Kong stocks are listed has reasonable valuations, and most companies have excellent fundamentals, competitive advantages, and current or layout opportunities.
Boshi Hong Kong Stock Connect consumption ETF (513960) closely tracks the consumption theme index of China Stock Exchange and Hong Kong Stock Connect (931455), arranges the consumption leader of Hong Kong stock market, and captures the dividend of consumption growth and valuation repair of Hong Kong stock market, which deserves investors' attention.
In the "post-epidemic" period, thanks to the large scale and potential of China's consumer market, the role of consumption as the main driving force of economic growth in China continues to appear, and under the general trend of domestic economic level and national trend, domestic consumers' sense of identity with domestic brands is increasing year by year.
As the world's second largest economy with a population of 1.4 billion, China's consumer market has a broad prospect and its potential is not to be underestimated. In February this year, the year-on-year growth rate of retail sales of consumer goods increased to 6.7% (the previous value was 1.7%), and the growth rate of retail sales of consumer goods of enterprises above the quota expanded to 9.1% (the previous value of 1.6%).
The premium of A shares over H shares broke through the historical 75th quartile at the end of March, and although Ching Ming Festival fell slightly before and after, it remained high. Therefore, the current valuation of Hong Kong stock assets is more reasonable, the performance-to-price ratio is higher, and the allocation value is higher than that of A-share assets.
The consumer sector in which Hong Kong stocks are listed has reasonable valuations, and most companies have excellent fundamentals, competitive advantages, and current or layout opportunities.
At present, the market capitalization of the consumer industry has appreciated by 18.82%, exceeding that of the financial industry by 17.58%, making it the second largest industry in the Hong Kong stock market.
The CSE-Hong Kong Stock Connect Consumer theme Index selects 50 consumer-themed stocks with good liquidity and large market capitalization within the Hong Kong Stock Connect to reflect the overall performance of consumer stocks in Hong Kong Stock Connect.
The index focuses on consumer leading companies listed on the Hong Kong Stock Exchange, with a moderate concentration of stocks. Stocks with a market capitalization of more than 100 billion account for 85.24% of the total weight, while stocks with a market capitalization greater than 500 billion account for only 34.19%. Therefore, the CSI-HK Stock Connect Consumer theme Index can effectively reflect the performance of leading consumer companies listed in Hong Kong.
From the perspective of historical performance, the consumption theme index of China Stock Exchange between Hong Kong and China has the characteristics of high elasticity and high income. Since 2015, the annualized income of the China Stock Exchange and Hong Kong Stock Connect Consumer theme Index has reached 19.68%, with a focus Sharpe ratio of 0.77. From the perspective of income, the performance of the CSI-Hong Kong Stock Connect Consumer theme Index is not only better than the A-share wide-base index such as Shanghai and Shenzhen 300 in the same period, but also better than the H-share wide-base index such as Hang Seng Index.
Boshi Hong Kong Stock Connect consumption ETF (513960) closely tracks the consumption theme index of China Stock Exchange and Hong Kong Stock Connect, capturing the dividends of consumption growth and Hong Kong stock valuation repair.
Ms. Wan Qiong, fund manager, 14 years experience in securities industry, Deputy head of ETF Group of Bosch Index and quantitative Investment Department. Joined Boshi Fund Management Co., Ltd in 2011. He has served as an investment assistant and an assistant fund manager, and is now a fund manager of several index funds and ETF products, with a management scale of more than 14 billion yuan and rich experience in product management.
Risk Tip: the report carries out index analysis and fund performance analysis based on past data, and the fund's past performance does not represent future performance.
