Fund managers generally believe that Hong Kong stocks are at a historic bottom, but will continue to be disturbed by multiple factors in the short term. At this stage, we can wait for clear signals by reducing risk exposure, looking for high-performance price targets, and balancing strategies.

The allocation right of Hong Kong shares has hit a new low in the past three years, and public offering funds are actively responding to the extreme market.

According to Guoxin Securities statistics, the allocation rights of public offering funds to Hong Kong stocks hit a new low in nearly three years in the third quarter. By the end of the third quarter, the number of common equity funds and partial stock mixed funds allocated to Hong Kong stocks was 156 and 809 respectively, and the proportion of the two types of funds allocated to Hong Kong stocks was 39.81%. From the point of view of the position, the median Hong Kong stock position of the general equity fund is 8.85%, and the median Hong Kong stock position of the partial stock mixed fund is 7.17%.

Specific to a single fund, most of the active equity funds allocated to Hong Kong stocks have little change in Hong Kong stock positions compared with the previous month, but there are also some funds with obvious increase or decrease positions.

Wind statistics show that by the end of the third quarter, seven active equity funds have increased their positions in Hong Kong stocks by more than 20 percentage points. For example, the western profit strategy did not allocate Hong Kong stock assets at the end of last quarter, but by the end of the third quarter, the market capitalization of Hong Kong stocks accounted for 42.68% of the fund's net asset value; the rich country, Shanghai, Hong Kong and Shenzhen high-quality assets and Guangfa value pilot, which were just established in the second quarter of this year, had not yet allocated Hong Kong stock assets at the end of the second quarter, but the proportion of Hong Kong stocks also exceeded 40% by the end of the third quarter. In addition, Bank of China Innovation Medical, Qianhai Open Source Shanghai, Hong Kong and Shenzhen powerful industries, Castrol selection, Huatai Perry Medical Health single-quarter increase in Hong Kong stocks are all more than 20 percentage points.

At the same time, 23 funds reduced their positions in Hong Kong stocks by more than 20 percentage points in the third quarter.

It is worth mentioning that in the face of the severe challenges of the Hong Kong stock market, although most of the funds did not open and close their positions, many of them adopted positive strategies and achieved good results.

For example, Bo Yang, a fund manager at Dacheng Hong Kong Stock Select (QDII), mainly made the following responses in the third quarter:

First, adjust the investment style in a timely manner.After the macro study concluded that US inflation persisted and the risk of the Fed raising interest rates rose, it was timely to bring the portfolio style closer to value. The industry focuses on high-quality traditional energy, basic food and beverages, globally competitive financial leading companies and so on. For growth stocks whose valuations are not particularly cheap and the downside risks of earnings cannot be ignored, they have made appropriate reductions or even liquidations.

The second is to control the overall position.When the macro risk continues to heat up, the original plan of choosing opportunities to increase positions is changed, but the stock position is only reduced but not increased on the basis of the second quarter.

Third, do a good job in stock selection.In addition to trying to find a few "safe haven" stocks in Hong Kong Stock Connect shares, we also make use of the QDII qualification and quota to explore new investment opportunities in non-Hong Kong Stock Connect stocks. These efforts contributed to the control withdrawal of the Fund in the third quarter.

In such a special market environment, Yifangda Hong Kong stock dividend fund manager Yang Tianqi and others made some adjustments under the premise that there was no major change in the position: reducing the positions of industries and individual stocks that are highly dependent on the macro environment, looking for industries and individual stocks with independent growth opportunities; from the perspective of the industrial chain, look for the sectors with the highest prosperity and the scarcity of production capacity in the industries that are less dependent on the macro environment.

At the same time, we still insist on looking for investment opportunities with high quality, strong growth opportunities and reasonable valuation throughout China, hold firmly in the process of market decline, and firmly increase positions in the process of panic selling in the market. In the risk prevention side, further optimize the portfolio position structure, and continuously improve the quality of the portfolio.

Bai Haifeng, the core selected fund manager of China Merchants Hong Kong Stock Exchange, mainly uses the defensive counterattack strategy to build the investment portfolio, keeping the position moderate. In the allocation of defensive assets, we should choose banks with undervalued, low volatility, large market capitalization, high dividends, operator stocks and infrastructure stocks that benefit from steady growth, and in offensive asset allocation, increase the allocation of short-term high prosperity and benefit from medium-and long-term economic transformation and development of power operators, energy and other sectors. After the impact of market liquidity, the share price of the new economy leader of Hong Kong stock market has dropped obviously, the long-term allocation value is outstanding, and the combination has also appropriately increased the allocation of relevant targets.

Hong Kong stocks are in a historically low area, reduce their exposure and wait for a clear signal

Fund managers generally believe that Hong Kong stocks are at a historic bottom, but they will still be disturbed by multiple factors in the short term. At this stage, we can wait for clear signals by reducing risk exposure, looking for high performance-to-price targets, and balancing strategies.

Li Yaozhu, the growth selection of Guangfa Hong Kong Stock Exchange, said that the recent tightening of US dollar liquidity and the escalation of the geopolitical situation in Europe have added external uncertainty to the market. At this stage, risk exposure will be reduced to wait for clearer policy signals. The market may be in a sustained consolidation in the short term, and future market reversals may depend on the Fed slowing the pace of interest rate increases, and there is clearer evidence that the Chinese economy is stabilizing and rebounding. It is understood that during the period Li Yaozhu increased the configuration of semiconductor equipment and aquaculture industry, reduced his holdings in the new energy vehicle industry, and maintained the allocation proportion of the Internet industry and the consumer industry.

Huatai Berry fund manager he Qi said that Hong Kong stocks have bottomed out, the worst is over, and there is a high probability that the market will rise in the fourth quarter. In his view, in the short term, the Fed interest rate increase table, Russia-Ukraine conflict, frequent outbreaks and other factors will continue to disturb the risk appetite of the Hong Kong stock market. In the medium term, Hong Kong stocks are affected by overseas capital, emotional aspects and Chinese fundamentals, and various indicators have shown that Hong Kong stocks are in a historically low area.

At the allocation level, looking for high performance-price allocation value in traditional industries, high dividend and low valuation may be a good choice. At the same time, we can also pay attention to the targets that are expected to reverse the dilemma and have greater performance flexibility. However, when reflecting on his own operation, he Qi also said frankly that it is particularly important to resolutely stop losing investment in Hong Kong stocks. In his view, in a market with no limit, the trend of technical graphics may be more accurate than the news of the market.

Luo Wen, manager of AXA Hong Kong Stock Exchange Fund, believes that as an offshore market, the short-term pressure on the Hong Kong stock market is more obvious because it is squeezed by US dollar funds and domestic fundamentals. The Hang Seng Index has fallen below a series of important support levels, valuations are at historically low levels, and a considerable number of companies have shown good investment value. The Hong Kong stock market is in a relatively difficult extreme moment in terms of capital, and Hong Kong stocks are expected to take a turn for the better when the Federal Reserve is expected to receive water at its strongest. "

In Luo Wen's view, the current economic cycle at home and abroad is inconsistent. On the whole, more and more economies are showing signs of recession, while China is in the stage of slow recovery. Although facing all kinds of difficulties, the upward direction of the policy cycle is very clear. Therefore, we are optimistic about the bottom investment logic of the Hong Kong stock market, but we still need to be more patient in the short term. Investing in high-quality companies in the industry segment will help us tide over the difficult times smoothly.

Hony distant Hong Kong stocks Tongzhi selected pilot Xu Zhicheng believes that the fourth quarter is likely to be a solid bottom for Hong Kong stocks in the medium to long term, and will become an important cross-year layout window. Hong Kong stocks are expected to be dark and bright, and the valuation center will gradually rise. Looking forward at the current time, we should adhere to a balanced strategy and guard against tail risks such as geopolitics and overseas policy mistakes, but we should also closely follow the market and pay attention to the opportunities for bargain-seeking layout. Under the overall framework, we will focus on energy, science and technology growth stocks, consumer industries, as well as large finance, biomedicine and other areas with greater flexibility.

Guo Chengdong, selected for the growth of Debang Port Stock Exchange, believes that the time at the bottom of the market is difficult to determine, but the market has shown some bottom characteristics, the overreflection of pessimistic expectations on fundamentals will be corrected, and value will eventually return in an efficient market. In terms of allocation, we still adhere to two ideas: one is to collect low-cost chips from growth companies at the bottom, mainly in science and technology, medicine, consumption and other sectors; second, valuation has an absolute advantage. Fundamentals are resilient and even start to show inflection points.

Zhao Xiancheng, the leading trend of Boshi Hong Kong Stock Exchange, believes that the Hong Kong stock market, whose valuation is at its lowest point in more than a decade, is worth long-term investment. The individual stocks and industries of the fund layout are still dominated by the growth leader white horse, the Internet representing China's new economy, the new energy vehicles with complete supply chain in China, the domestic alternative strategy section that is not affected by the conflict between China and the United States, the CXO with international competitiveness, and the brand premium leader recovering after the epidemic are all promising layout directions, while consumption, photovoltaic, sportswear, military industry, clean energy and other industries are also evenly distributed. Although all kinds of stocks fell in the third quarter due to the panic of the recession, balanced growth is still the best investment strategy to pursue a rise in net worth and effectively control the pullback.

Huabao Hong Kong Internet ETF fund manager Feng Chencheng believes that it is performance and fundamentals that determine the medium-and long-term trend of the Hong Kong Internet sector, not short-term capital. From the perspective of absolute valuation, Hong Kong stocks are already below the very low level, and the valuation quantile of the HKC Internet Index is also at an all-time low, superimposed by the continuous inflow of southward capital under the domestic loose monetary policy. If the internal and external environment improves, the Hong Kong stock market and the Hong Kong stock Internet industry are expected to rebound more strongly in the future.