Recently, Chinese stocks have risen "hi" again!

A reporter from the China Fund News found that many Chinese stocks have performed well. For example, the US China stock index has risen 12.4% since May 12. Some Chinese and Hong Kong stocks have also performed well in the Hong Kong market, and some heavyweights have risen more than 10%.

Why on earth did Chinese stocks usher in this wave of rise? Where are the follow-up opportunities? How should the loan fund be arranged? China Fund News reporter interviewed six investors to talk freely about the future opportunities of US-listed stocks. They are: Xia Haoyang, manager of Guangfa China General Interconnection ETF Fund, Wang Xinchen, manager of Castrol Hong Kong stocks Internet industry core asset fund, ran Linghao, fund manager of Dacheng Hang Seng Technology ETF, Zhan Jia, director of International Business Department of Everbright Prudential Fund, qu Shaojie, assistant general manager of International Business Department of Great Wall Fund, and Zhou Jiansheng, senior researcher of Nord Fund.

These people believe that the disadvantageous factors that suppressed Chinese stocks have changed, prompting this wave of Chinese stocks to rebound. Investors in the future take advantage of the fund to participate in US-listed stocks, pay attention to because there are many fluctuating factors, should not blindly chase high or bottom, need to be more cautious than the domestic market, but also pay attention to the discount premium, QDII quota and other issues.

Multiple factors promote the rebound of Chinese stocks.

China Fund News reporter: previously suffered a sharp rebound in Chinese stocks recently, some heavyweights rose more than 10%, how do you view this situation? What is the cause?

Ran Linghao: since last year, Chinese stocks have undergone a great adjustment. The main reasons for the adjustment are as follows: first, the strict supervision of the Internet industry by the state has triggered market concerns, resulting in a sharp decline in the valuation of Internet platform companies; second, the strict implementation of the regulatory requirements on the listing status of Chinese-listed stocks by the US regulatory authorities led to the decline of Chinese-listed stocks, which led to the decline of Hang Seng Technology's main weighted stocks. Third, China's recent macroeconomic pressure is a drag on the performance of US-listed stocks.

However, recently, the relevant factors have changed, mainly as follows: first, the country's strict supervision of the Internet industry has achieved preliminary results, and the regulatory environment of Internet companies is loosening; second, the regulatory authorities of China and the United States are actively negotiating on the regulatory issue of Chinese-listed stocks, with a view to solving the problem perfectly. Third, this round of epidemic situation in China has been gradually alleviated, social and economic activities will also gradually resume, and the State Council has also taken a number of measures to promote economic development, which is conducive to economic growth. As a result, Chinese stocks rebounded sharply.

Xia Haoyang: in the context of the previous suppression of the internal and external factors of the valuation of the interconnection, such as the epidemic, Fed policy, and so on, the interconnection plate has been repaired recently, and the index has rebounded by nearly 10%. From the end of May to the beginning of June, China General Interconnection Plate entered the announcement period of first-quarter results and second-quarter guidance. Judging from the performance of the major components that have been announced, the performance has been mixed, and there has been a certain differentiation. Some heavyweights with good performance are sought after by market funds, showing a large increase, while the performance of heavyweights whose performance is lower than expected is relatively weak. Therefore, the short-term performance of interconnection in this round is mainly affected by many factors, and there has been a rebound as a whole, but there is still differentiation within.

Zhan Jia: there are two main reasons for the recent rebound in US-listed stocks. First, the hawkish attitude of the Federal Reserve eased slightly, the latest US inflation data fell, and the market's outlook for the future liquidity environment improved, so foreign growth stocks rebounded as a whole. Second, a considerable number of weighted shares belong to the platform economy, and recent domestic policies have given support to the healthy development of the platform economy.

Wang Xinchen: from three aspects, China-listed stocks have adjusted greatly since the second half of 2021, so that their valuation has been adjusted to a lower position; the second is the encouragement of policies, especially the recent relevant meetings and policies to encourage the development of Internet platforms. Third, according to the quarterly report, many companies have still exceeded expectations under the background of great macro pressure, and looking forward to the second half of the year, after the epidemic returns to normal, people are confident that they will develop better through their own growth.

Qu Shaojie: the state and society as well as the investment market have begun to further understand the social and economic value of Internet platform companies. Over the past period of time, there have been differences on the value of the platform economy, and the Internet platform has developed to a stage where it has a huge volume and influence on the economy and society, and there has indeed been disorderly competition. as a result, the state has issued a series of measures to strengthen anti-monopoly and unfair competition, prevent the disorderly expansion of capital, and achieve the desired governance results. At present, the rebound of Internet enterprises has initially met the conditions.

First of all, in terms of policy, the state's management of Internet companies has entered a new stage, supporting the innovation and development of platform enterprises, enhancing international competitiveness, supporting the sustained and healthy development of the platform economy, and encouraging platform enterprises to participate in major national scientific and technological innovation projects. Policy uncertainties have basically been effectively eliminated.

Secondly, in terms of fundamentals, the domestic COVID-19 epidemic broke out in key areas, social and economic activities were affected to a certain extent, and the advertising and transaction commission income of Internet enterprises declined to varying degrees. As Shanghai gradually liberalizes social activities and the economy returns to normal, the negative mood brought about by the disturbance of the epidemic has also been improved.

Third, in terms of valuation, the price-to-earnings ratio and price-to-book ratio of the Hang Seng Technology Index and the Hang Seng Hong Kong Stock Exchange Index are both in the range of negative double standard deviation, which belongs to the bottom range of historical valuation.

To sum up, policies, fundamentals and valuation have created good conditions for the rebound of Internet companies.

Zhou Jiansheng: we believe that the short-term rebound of US-listed stocks is first of all the repair of excessive pessimism in the early stage, from excessive pessimistic valuation to reasonable valuation. On the one hand, too much price in for some short-term uncertainties in the market is bound to be corrected; on the other hand, Chinese stocks in the global market are still relatively high-quality assets, many companies have high investment performance-to-price ratio, good assets and low prices will naturally attract capital to enter.

Chinese stocks are full of new vitality after brief labor pains.There may be differentiation in the future

China Fund News reporter: standing at this point in time, how do you view the investment value of US-listed stocks? Will there be a better performance in the future?

Xia Haoyang: at present, the general interconnection plate has an inflection point at the policy end, making a transition from a tight cycle to a wide cycle. The impact of overseas geographical conflicts and the Fed's monetary policy is also decreasing marginally. From a short-and medium-term perspective, many factors that suppress the valuation of the Internet sector are gradually alleviated, and Internet investment will return to performance-oriented in the future.

As far as performance is concerned, the current economic pressure still exists, and it may be necessary to appropriately lower expectations for the second quarter's results, but if the follow-up plate's favorable policies fall to the ground accordingly and the domestic economy recovers after the superimposed domestic economic epidemic, the performance inflection point of the general interconnection plate may also follow, when the plate may usher in a real Davis double-click in the context of low valuation.

Ran Linghao: the science and technology industry is the most important industry in China in the future, and the main body of Chinese stocks is the leading companies in China's science and technology industry, with long-term growth and long-term investment value.

After about a year of decline, from a technical point of view, the adjustment has been very sufficient. In terms of valuation, it is also the lowest level in history. From the perspective of fundamentals, the regulatory environment of Internet companies may become looser in the future, and China's macro-economic growth rate is also expected to gradually recover. Therefore, from a high probability point of view, the future trend of Chinese stocks will be more optimistic.

Zhan Jia: the current investment value of Chinese stocks needs to be supported by continuous performance, and the performance of Chinese stocks may be differentiated in the future. The resilience of corporate earnings, the ability to innovate and the ability to fight inflation are the main watershed.

Wang Xinchen: as mentioned above, it will continue for some time. I am optimistic about the performance of these stocks. From a long-term point of view, the future activity of US-listed Chinese stocks is likely to decrease, because some leading companies encounter relevant challenges in listing in the United States, resulting in many Chinese companies originally listed in the United States to be listed in Hong Kong. therefore, the general era of US stocks has passed, and Hong Kong stocks will gradually replace the role of US stocks.

On the one hand, Hong Kong is an offshore market, that is, it can be financed into both Hong Kong dollars and US dollars. at the same time, under China's regulatory framework, there is no big data security risk, so most technological innovative companies will turn to Hong Kong stocks as a place to be listed. From this point of view, I am more optimistic about the Internet / technology of Hong Kong stocks, and many US-listed Chinese stocks have completed secondary listings in Hong Kong.

Qu Shaojie: Internet companies have promoted China's digital transformation and upgrading for a long time and enhanced China's international competitiveness. short-term policies and norms will usher in a new stage of long-term development. Scientific and technological innovation is China's core strategy, so we are optimistic about the long-term investment value of China's Internet. These leading Internet companies are China's core assets before they fall, and cheaper after they fall. It will also be one of China's engines in international competition in the future, and it will also have longer-term development space.

Zhou Jiansheng: we believe that the investment value of US-listed stocks should be analyzed in detail, not generally good or bad. We believe that after this round of adjustment, Chinese stocks will enter a new normal. After active strategic adjustment, some companies will be reborn with new vitality after a short period of pain, and they will certainly have a good performance in the future; while another part of assets may not find a new breakthrough for a long time and will be snubbed by the capital market.

Be optimistic about the Internet, the new power of car building, etc.

China Fund News reporter: in your opinion, which subdivision areas in US-listed stocks are more worthy of layout?

Xia Haoyang: there are many excellent companies in Chinese stocks that deserve investors' long-term attention, especially those in the Internet sector. There are many long-term development paths for the Internet industry, which can open the valuation boundary by means of polishing its own R & D capabilities, combining digitization with industrial Internet, promoting globalization strategy, and developing meta-universe; in the future, the importance of the Internet in China may become more and more significant. Investors can fully pay attention to the long-term allocation value of the Internet enterprises related to the above-mentioned subdivisions in the current Chinese stocks and share the dividends brought about by the rapid development of the Internet.

Zhan Jia: relatively optimistic about the layout opportunities in the areas of consumption, medicine, science and technology, manufacturing, energy and so on.

Wang Xinchen: in the general breakdown of the field, we are still optimistic about the Internet first. Although the growth of Internet traffic has slowed down, the structural opportunities are worth paying attention to, such as the form of short videos; second, platform enterprises that have been seriously damaged in the epidemic, but are expected to be repaired. These platform enterprises suffered from the epidemic, offline consumption received a greater impact, the valuation fell more; third, the new power of car-building is worthy of attention, many of them are entrepreneurs from the Internet, representing destructive innovation. On a global scale, the global leading enterprises closest to the United States are the new forces of domestic car manufacturing, they are closely following the pace of the leaders in electrification and intelligence, and I think many enterprises are overtaking in the corners. To realize that China's automobile manufacturing industry has taken the lead in the world is our optimistic direction.

Qu Shaojie: the investment of Internet enterprises in the new stage should be selected among the best. Not all science and technology stocks have investment value. Only those enterprises with high user stickiness, continuous innovation ability and in line with the national development strategy have long-term investment value. Social and online shopping, as well as hard-tech companies such as new energy vehicles, are worth laying out.

Zhou Jiansheng: the platform economic leader in the 2C field that actively serves the national economy and people's livelihood is still a good direction, and it is becoming more and more difficult to give birth to new giants. Players in the digital economy who take root in the 2B sector to help China's economic transformation, such as cloud computing, will show long-term investment opportunities. Another type of opportunity is for companies that rely on previously accumulated resources to develop core technological competencies, which may require more waiting.

Participate through the Chinese stock fund.It is not advisable to blindly pursue high or bottom.

China Fund News reporter: under this background, how do you think investors should choose fund products if they are willing to lay out Chinese stocks? What do you need to pay attention to?

Xia Haoyang: you can consider the allocation through indexed investment. At present, there are many ETF varieties of the interconnected plate in the market that investors can refer to. Invest in a basket of Chinese-listed companies in a relatively transparent and decentralized way. The main thing to note is that recently, some relevant ETF due to the shortage of QDII quota and other reasons, the purchase limit has been significantly reduced, investors should pay full attention to the discount and premium rate of plate ETF floor trading, pay attention to investment risks.

Zhan Jia: as US regulators have raised the audit supervision requirements for Chinese stocks and given a relatively short time limit for adjustment, investors need to choose managers with more experienced investment experience in overseas markets when buying China General Fund products to avoid abnormal fluctuations caused by delisting risks. At the same time, the Fed will start to shrink the table in the second half of the year, and there are more opportunities to build positions in the environment of declining liquidity in the international market. Investors are advised to be patient and choose opportunities to build positions in the full adjustment of the market.

Qu Shaojie: invest in Chinese stocks, on the one hand, you can buy QDII funds, but at present, some Chinese Internet QDII funds have suspended or suspended large applications due to the QDII quota, so it is difficult for investors to directly invest in Chinese stocks funds. On the other hand, many Chinese stocks have been re-listed in Hong Kong stocks, and more and more Chinese stocks will return to Hong Kong stocks in the future, so they can be replaced by investing in Hong Kong stock funds with the theme of technology and Internet.

In addition, Chinese stocks in the US market may have adverse news such as compulsory delisting due to US regulatory reasons, which requires the attention of investors. On the other hand, the technology Internet theme funds investing in Hong Kong stocks basically do not need to worry about this, which is also the advantage of Hong Kong stock funds over US US Chinese equity funds.

Zhou Jiansheng: investors in the layout of Chinese stocks should choose funds that match their own ideas, otherwise it is easy to produce anxiety. China-listed stocks are a special "group", which lies between domestic and foreign supervision and investors at home and abroad. there are many fluctuating factors, so it is not suitable to blindly pursue high or bottom, which needs to be more cautious than the domestic market.