Source: Broker China
The Hong Kong Stock Technology Index, which is heavily held by public funds, soared nearly 4% on June 19, as the recovery of game tracks exceeded expectations and high turnover of new summer products.
Industry insiders pointed out that the opposite performance of the game circuit between A-shares and Hong Kong stocks has caused many A-share fund managers to go south to Hong Kong stocks to lay out game stocks, providing more liquidity support for the Hong Kong stock game circuit. There are even A-share new energy fund products that cross borders to surpass Hong Kong stock game leaders.
Currently, A-share game-themed funds generally lose about 15% during the year, while Hong Kong game-themed funds enjoy the performance flexibility brought about by game recovery. Many fund managers emphasized that the rapid recovery of game tracks and the rise in new traffic flows are due to the application of AI artificial intelligence technology.
Gaming stocks have become the core holdings of Hong Kong stock internet funds
On June 19, against the backdrop of the domestic game business recovery exceeding expectations and the summer Golden Month, Hong Kong$Hang Seng TECH Index (800700.HK)$It soared by 3.65%, driving the full rise of fund group stocks, and the Harvest Hong Kong Stock Internet Fund's heavy holdings$BILIBILI-W (09626.HK)$The increase was as high as 18.96%, and the stock's cumulative increase in five trades has reached 30%.
The Internet and artificial intelligence have become the best performing varieties in fund stocks, including AI models$SENSETIME-W (00020.HK)$, Internet sports community platform$KEEP (03650.HK)$, big medical model$YIDU TECH (02158.HK)$There was a marked increase in capital, especially after foreign investors announced further increases in stock holdings. At one point, Yidu Technology, the AI medical model stock covered by the fund, rose by 20%, and the Southern Shanghai, Hong Kong, and Shenzhen Fund held heavy positions$MEITU (01357.HK)$The stock price also rebounded strongly. The stock rose by about 8.87% after the founder announced an increase in holdings of 1 million shares; in addition, Bosch Research chose to take heavy positions$GWMOTOR (02333.HK)$It surged 4.84%.
Despite the full rise of the Hong Kong stock internet circuit, the trigger is a more segmented game circuit. Unlike the sluggish performance of the game circuit in the A-share market, in the Hong Kong stock market, this track is no less than the popular resource theme and AI theme in the A-share market. The game circuit is becoming the core position of public fund managers in the Hong Kong stock market's 2024 layout.
“The current round of the Hong Kong stock internet company market is mainly driven by listed companies on multiple gaming platforms, thus driving the strong rise in the Hang Seng Technology Index.” A fund manager in Shenzhen who is heavily involved in the Hong Kong stock internet circuit told the brokerage China reporter that the recovery of the Hong Kong stock game circuit's performance has exceeded market expectations. The signs of recovery are better than the consumer circuit, and it is reflected in the phenomenon of multiple game stocks collectively exceeding expectations. Considering the special time points brought about by the approach of summer, the successive launch of key games on major game platforms will help to continuously improve the industry sentiment and increase the growth rate of the game market.
Zheng Jian, manager of Chuangjin Hexin Internet Fund, which is heavily involved in gaming stocks, believes that with confirmation of economic recovery data, the game circuit's valuation repair space is attractive. After undergoing major adjustments in the early stages, the overall market is currently at the bottom of history, and there is plenty of room for valuation improvement. At the same time, various policies have been introduced one after another, reducing uncertainty and helping investors to recover. In terms of overseas liquidity, the Federal Reserve has already entered the end of the interest rate hike cycle. If it moves into a cycle of interest rate cuts, it will help ease the outflow of foreign capital.
A-share fund products cross border Hong Kong stock game circuit
Gaming stocks stand out in the Hong Kong stock market, and have even attracted A-share fund managers to cross borders and cross industry superdistributions.
A Chinese brokerage reporter also noticed that the strong recovery of the Hong Kong stock gaming circuit has even attracted key holdings from new energy themed fund managers. The Xinao New Energy Themed Fund has become the largest share of all fund products held by Bilibili, the leading gaming company. By the end of the first quarter of this year, Bilibili, the NEV themed fund's holdings alone had exceeded the 10% fund position limit.
However, the trigger for Bilibili, a fund's heavy stock holdings, are that mainland China and international investment banks are collectively looking up for its biggest game product of the year. “Three Kingdoms: Designing the World” distributed by Bilibili's agent was officially tested recently and has been in the top two iOS game download lists for several days. Institutional investors expect the game's first-month turnover to be higher than previously anticipated.
In addition, Hong Kong stock gaming platforms with heavy funds$XD INC (02400.HK)$,$TENCENT (00700.HK)$The annual turnover of major game products has also exceeded market expectations. As a result, the high-margin game operation business has rapidly raised fund managers' optimistic expectations for the Hong Kong stock listed companies' mid-term reports and third-quarter reports. Heartstone, which is heavily invested by the Hong Kong Stock Internet Fund, has become the first variety in the Hong Kong stock internet circuit to double its stock price during the year, under the strong impetus of the rapid recovery of the game business.
It is worth mentioning that the A-share New Energy Fund manager went south to cross the Hong Kong stock market and lay out Hong Kong stock game leaders, which confirmed the signs of continued capital inflows into the Hong Kong stock game circuit from another perspective. Another factor that led to the popularity of the Hong Kong stock game circuit is the sluggish state of the A-share game circuit. According to information disclosed by a large public equity gaming ETF fund in the North, up to now, this game ETF fund has lost more than 17% during the year, while many funds heavily invested in Hong Kong game circuits have earned about 15%.
What is obvious is that the trend of the game circuit in the opposite direction between A-shares and Hong Kong stocks has provided some opportunities for the Hong Kong stock game circuit to attract A-share fund products to the south.
Accelerate the application of artificial intelligence and increase the gross profit margin of new users
Regarding potential layout opportunities for game tracks in the summer, many fund managers expect that the combination of artificial intelligence and game products may bring higher exposure and turnover.
A fund manager who manages gaming-themed ETFs in Shanghai believes that maintaining strength in overseas technology stocks is beneficial to the gaming circuit. On the one hand, the market has fully set expectations for the Fed to cut interest rates during the year, which will help to revive risk appetite.
On the other hand, demand for AI remains strong, the application side is rapidly iterating, and fundamental support is still there. In recent months, the pace of implementation of multi-modal applications at home and abroad has accelerated. Judging from industry trends, the application of game media is still the best application scenario for artificial intelligence. In particular, game version distribution has broken 100 for four consecutive months, and casual mobile games continue to be popular. This highlights the strong demand for game circuits, and “self-satisfied consumption” has vigorous vitality in the current weak consumer environment.
A large public fund manager in the North believes that at the game circuit, more attention will be paid to the matching of valuation and performance delivery. Artificial intelligence helps game companies bring real results. With the adjustment of the entire technology industry in the beginning of 2024, industry valuations have returned to a very low quantile in history. Artificial intelligence expectations have also been adjusted, and game circuit risks have been released to a large extent. Future investment in game circuits will focus on stocks with potential for artificial intelligence applications in game circuits. More efficient work will drive the performance of related stocks to exceed expectations.
Luo Guoqing of the Guangfa Fund, which is heavily involved in gaming stocks, also stressed that the current AI market, led by the continuous stable distribution of domestic game versions and the launch of artificial intelligence products, has stimulated game circuits. Artificial intelligence technology will continue to provide new growth momentum for gaming and other industries. Technological upgrades will accelerate its application in content production in the game industry and promote cost reduction and efficiency in the game circuit segment.
editor/tolk