Just after slightly increasing its holdings in the Ningde era, the largest overseas Chinese equity fund has greatly reduced its holdings in backhand.

Allianz China A-share Fund recently released position data up to the end of May, showing that during May, the fund reduced its position in the Ningde era by 17.98%, directly from the second largest position at the end of April to the fifth largest.

In addition, JPMorgan Chase & Co's flagship fund also reduced its holdings in Ningde era stocks by 11.29% in May.

Analysts pointed out that BYD's entry into the Tesla, Inc. battery supply chain will intensify the competition in the power battery industry, coupled with the fact that the Ningde era has recorded no small increase since the end of 2019, and fluctuations may intensify in the future. this may also be the reason for foreign investors to reduce their positions in the Ningde era. However, after the release of "Kirin Battery" in Ningde era, Ningde era will rely on Kirin battery to win more voice in cooperation with car companies.

Ningde era when the largest overseas Chinese stock fund was reduced.

According to data recently released by Morningstar, Allianz China A-share Fund, the largest overseas Chinese stock fund, made another major adjustment to its heavy stocks during May. Ningde Times reduced its holdings by 17.98%, and Longji Green Energy and Goyle shares were increased. Among them, Longji Green Energy increased its shares by 6.36% and Goyle shares by 11.31%.

By the end of May, the top 10 heavy stocks of Allianz Shenzhou A-share Fund were CITIC, Shanxi Fenjiu, Wuliangye, Longji Green Energy, Ningde Times, China Merchants Bank, Midea, Poly Development, Enjie shares and Gore shares.

Due to the Zhongkang Ningde era, Allianz China A-share Fund recorded an income of 55.54% in 2019 and 68.19% in 2020, generally outperforming the average level of the same kind. But since 2021, with the adjustment of new energy stocks such as Ningde era, Allianz China A-share fund has performed relatively lacklustre, with a return of 1.85% in 2021 and-10.17% this year.

In fact, Allianz China A-share fund has been reducing its holdings in Ningde for some time. Allianz China A-share fund held Ningde era market capitalization accounted for more than 5% of the fund's net worth, but the latest ratio is 2.89%.

Allianz invested in another China equity fund, Allianz omni-directional China Equity Fund, which also significantly adjusted its position in May, resulting in an increase in Internet stocks.

During May, the fund increased its stake in Tencent by 5.68 per cent, BABA by 14.25 per cent, China International Capital Corporation by 8.54 per cent and other heavy stocks by 0.36 per cent, according to Morningstar.

JPMorgan Chase & Co also reduced his holdings in the Ningde era.

In addition to Allianz investment, JPMorgan Chase & Co also reduced his holdings in Ningde era stocks during May.

According to data released by Morningstar, JPMorgan Chase & Co's Morgan Fund-China A-share opportunity Fund reduced its holdings in Ningde era by 11.29% in May, Tongwei shares were also reduced by 4.41%, while China Merchants Bank and Guodian Nanrui increased their holdings, while other heavy stocks remained unchanged.

It is worth mentioning that, like Allianz investment, although JPMorgan Chase & Co reduced a lot of positions in the Ningde era, but increasing positions in Internet stocks seems to be the concerted action of the two giants.

Morningstar data showDuring May, JPMorgan Chase & Co China Equity Fund bought BABA in a large position, increasing its holdings by 100%.The fund held BABA with a market capitalization of US $161 million at the end of May, but its first purchase was in May 2022, while BABA was not on the previous list of heavy positions, so it can be seen that the fund may have bought BABA in May.

JD.com was previously increased by 12.54 times by the fund.In May, the fund increased its position significantly again, JD.com, by 16.08 per cent.

Fidelity invests to increase its holdings of BABA, etc.

China Consumer Dynamics Fund, a large China equity fund owned by Fidelity International, also recently released position data for the year to the end of May.

Tencent, the largest heavy stock, was reduced by 1.98 per cent of its shares, BABA increased its holdings by 2.56 per cent, Mengniu and Shenzhou International Group also increased their holdings, and the positions of Guizhou Moutai, Meituan and NetEase, Inc changed little.

China focus, another China equity fund owned by Fidelity, was relatively small and focused on its heavy holdings in May.

BABA increased its holdings by more than 50%, Tencent increased its holdings by 14.01%, China Merchants Bank's H shares increased by 41.81%, and China Construction Bank Corporation and Industrial and Commercial Bank of China also increased their holdings in the fund.

Kirin battery may enhance the discourse power of Ningde era

BYD's entry into Tesla, Inc. 's supply chain will intensify the competitive landscape of power batteries, which may be one of the reasons for foreign concern.

However, after the release of "Kirin Battery" in Ningde era, foreign institutions believe that with the further development of the integration technology of power battery and car body in the future, Ningde era will rely on Kirin battery to win more voice in cooperation with car companies.

Ningde Times released a new "Kirin battery" based on CTP3.0 technology on June 23rd. Compared with the traditional "cell-module-battery package" three-stage structure, CTP (CellToPack) technology can directly omit the module assembly and integrate the cell into the battery package to improve the overall energy density and reduce the cost.

Nomura Oriental International believes that the highest energy density of the Kirin battery ternary system can reach 255Wh/kg, in the case of slowing down the innovation of battery materials, Ningde era may increase the energy density of the battery by further increasing the nickel content, while the advanced thermal management capability of CTP3.0 technology will effectively control the safety risks caused by thermal runaway. The improvement of integration will help the popularization and application of lithium iron phosphate.

The biggest bottleneck of lithium iron phosphate is the low energy density of the system, but under the extreme volume utilization in recent years, the energy density of lithium iron phosphate system has been greatly improved. The lithium iron phosphate battery with CTP3.0 can achieve the energy density of 160Wh/kg, which is comparable to the traditional ternary battery. In the context of high prices of raw materials such as nickel and cobalt and a significant increase in the energy density of lithium iron phosphate batteries, car companies may be more inclined to equip their models with lithium iron phosphate batteries.

Nomura Oriental International said the launch of Kirin batteries would increase Ningde's voice in the car factory. At present, the whole vehicle factory and battery manufacturers are in a "competing" relationship. In order to maintain the independence of vehicle technology and the autonomy of development, automobile companies begin to try to develop their own power battery system. However, for the car companies with weak technical strength, the introduction of Kirin battery in Ningde era has further widened the technology gap between car companies and battery manufacturers, so purchasing battery packages directly from battery manufacturers may become the best solution to maintain the advanced nature of their vehicles. With the further development of the integrated technology of power battery and car body in the future, Ningde era will rely on Kirin battery to win more voice in cooperation with car companies.