The A-share market has fluctuated and adjusted since July, but the positive view of foreign investors on the Chinese stock market has not changed.
Recently, foreign giants such as JPMorgan Chase & Co, Blackrock and Anben announced their positions in their funds in July. JPMorgan Chase & Co's flagship funds increased their positions in the new energy sector, and the number one heavy stock, Ningde era, increased by more than 6%. Blackrock's ChinaStock fundFocus on increasing financial and consumer stocks, Societe Generale increased its holdings by more than 50%; Aberdeen's China Equity Fund comprehensively increased its holdings in Chinese stocks, and Guizhou Moutai, the number one heavy stock, increased its holdings by more than 10%.
According to the analysis, the current foreign capital allocation A-share market is still in its early stage, and the general trend of continuous inflows will not change, and foreign capital inflows are expected to accelerate with the expected improvement of overseas liquidity.
The second largest Chinese equity fund increases its position in ChinaAssets
JPMorgan Chase & Co's flagship fund, JPMorganFunds-ChinaA-ShareOpportunitiesFund (JPMorgan Fund-China A-share opportunity Fund), recently released its position record as of the end of July, with the latest size of 42.655 billion yuan, making it the second largest overseas Chinese equity fund.
According to Morningstar data, the top major positions of the Morgan Fund-China A-share opportunity Fund are Ningde Times, Tongwei shares, Longji Green Energy, China Merchants Bank, Guodian Nanrui, Wuliangye, Baoxin Software, Yangtze River Power and Huichuan Technology. As of the end of July, the fund held a total of 99 stocks, with the top ten positions accounting for 26%.
During July, the fund increased its positions in many of its heavy stocks, and Ningde Times, the number one heavy stock, increased its position by 6.3%. Longji Green Energy, China Merchants Bank, Guodian Nanrui, Baoxin Software, Changjiang Electric Power, Huichuan Technology and so on are all on the increase list. Wuliangye's position remains unchanged.
It is worth noting that Changjiang Electric Power won the fund to increase its holdings by 14.37%, which is the largest increase in shares in the published list of heavy stocks. Tongwei shares were reduced by 8.88%, the stock with the largest reduction.
BlackrockChinese stock funds increase their holdings in finance and consumption
Blackrock's China Equity Fund also recently announced its position records as of the end of July, with the financial and consumer sectors receiving key increases in positions.
Recent data released by Blackrock Global Fund-China A-share Special opportunity Fund show that during July, the fund made substantial adjustments to its heavy holdings, with many heavy holdings significantly increased, but Ningde Times reduced its holdings by 30 per cent.
Specifically, Guizhou Moutai, the number one heavy stock, increased its position by 3.41%, with a market value of $40.9334 million, or about 278 million yuan, at the end of July, while BYD also increased its stake by 0.65%, with a market value of $24.305 million, or about 165 million yuan, at the end of July.
Societe Generale and special electricians were increased by 55.94% and 43.59% respectively. In addition, BOE A, Wuxi Apptec, Petrochina, Changdian Technology, Luzhou laojiao and other positions have also been increased to varying degrees.
It is worth noting that the fund reduced its holdings in Ningde era by 30.23% in July, the only one of the top 10 heavy stocks to be reduced.
Another Chinese equity fund owned by Blackrock also made major adjustments to its position during July. BABA's position in the first heavy stock remained unchanged, Meituan, the second largest stock, was reduced by 7.05 per cent, and Tencent, the third largest stock, was increased by 3.37 per cent.
Wuxi Biologics and Oriental Wealth received a substantial increase in their positions, of which Oriental Wealth increased its holdings by 161.42% and Wuxi Biologics increased its holdings by 32.51%. According to Morningstar data, the fund established positions in Wuxi Biologics and Oriental Wealth in April 2022. With the substantial increase in the fund's holdings, Wuxi Biologics and Oriental Wealth are the ninth and tenth largest stocks respectively.
Aberdeen China Equity Fund increased its position in an all-round way
The European asset management giant Aberdeen's China Equity Fund Aberdeen Standard-Omni China Sustainable Equity Fund also announced its position as of the end of July, during which the fund comprehensively increased its heavy position. Guizhou Moutai, the number one heavy stock, was increased by 10.8%.
In addition, the fund also increased the positions of 24.82% of Midea's shares, 44.43% of China Merchants Bank's 44.43% shares, 28.59% of Guanglian's shares and 21.75% of Mindray Medical's shares.
By the end of July, the top 10 heavy stocks of the fund were Guizhou Moutai, China exemption, Midea, China testing, Mindray Medical, Ningde era, China Merchants Bank, Longji Green Energy, Guangzhou Lianda and Ningbo Bank.
The change in the position of the Abeni Standard China Equity Fund in July was relatively small. Tencent, the largest heavy stock, increased its position by 4.62%, China Merchants Bank's H shares also increased, while China China exemption reduced its position by 12.4%, and Guizhou Moutai, NetEase, Inc and others also reduced their holdings.
Foreign investors remain relatively optimistic about the future of China's stock market.
After a steady decline at the start of the year, the A-share market has performed strongly since the end of April, but indices have pulled back since July.
Mr Abe attributed the recent strong rebound and excellent performance of the Chinese stock market to the easing of some key headwinds. In terms of the COVID-19 epidemic, China's dynamic zero clearance policy has achieved remarkable results in reducing the number of new cases. On the other hand, it is also due to China's relatively more favourable monetary and fiscal environment. Unlike other major central banks around the world, the people's Bank of China has not joined the global trend of sharply raising policy interest rates. On the contrary, since the beginning of 2022, the PBoC has relaxed policy several times through a combination of interest rate cuts and reserve rate cuts. This completely different kind ofmonetary policyThe position is thanks to china's relatively low inflation, which was just 2.5 per cent in June.
Looking ahead to the second half of the year, Mr Abe believes there is good reason to be relatively optimistic about the outlook for the Chinese stock market. Specifically, the combination of further control of the epidemic, reduced regulatory pressures, loose monetary and fiscal policies, and relatively low valuations provide room to continue to achieve leading performance.
However, Mr Abe also noted that some important risk factors should not be ignored while being optimistic about the outlook for the Chinese stock market. First, despite the gradual easing of restrictions over the past two months, the dynamic zeroing policy continues. Second, the real estate sector, which is estimated to account for about 25 per cent of GDP in China together with related services, continues to have a negative impact.
Blackrock fund manager Zou Jiangyu recently also expressed his views on A shares, "looking forward to the second half of the year, China's economy is expected to take the lead in the world recovery, corporate profits are also expected to usher in improvement." The impact of the overseas interest rate hike cycle will gradually weaken, and the domestic interest rate environment and liquidity are expected to remain relatively loose. We remain optimistic about China's equity assets and believe that there are rich investment opportunities in the market. In the past few years, despite the uncertainty of the global macro environment, China has a number of outstanding enterprises relying on first-class entrepreneurship and teams, huge market demand, strong industrial cluster advantages, sustained engineer dividends, and so on. We have achieved strong growth, and we are full of confidence in the future of these excellent enterprises. "
(source: Securities Times)