① The Sovereign Wealth Fund performed outstandingly during the mid-term and captured multiple bullish stocks; ② The Middle East Sovereign Wealth Fund frequently conducts research on A shares and lays out in fields such as medicine and new energy.
"The index has returned, but the money hasn't," seems to be a true reflection of many investors in the first half of the year.
The A-share market in the first half of the year has already ended, with an overall trend of first falling, then rising, and then falling again. The Shanghai Composite Index has been fluctuating around 3000 points, giving most investors a roller coaster ride.
However, many "foreign national teams" established by governments around the world, i.e. sovereign wealth funds, have handed in an impressive "mid-term report", which includes many top sovereign wealth funds in the world, such as the Abu Dhabi Investment Authority, the Kuwait Investment Authority, Temasek Holdings, and Norwegian Bank, etc., with a total market value of A-shares held of 21 billion yuan.
Abu Dhabi Investment Authority captures quality stocks.
In terms of holdings, according to Wind data, at the end of the first quarter of 2024, the A-share companies with major holdings (appearing in the top ten list of circulating shareholders) held by Abu Dhabi Investment Authority were 27, with a total market value of about 11.289 billion yuan, an increase of over 1 billion yuan from the end of 2023.
In terms of stock price trends, the Abu Dhabi Investment Authority has a sharp eye and has captured many quality stocks, such as Yutong Bus, which has risen 105.49% year-to-date as of June 30, with a total holding of 0.383 billion yuan, and Zijin Mining, which has risen 42.62% so far this year, with a total holding of 1.99 billion yuan. Gold-trust, Beijing New Building Materials both rose more than 30% year to date, and Abu Dhabi Investment Authority holds 0.381 billion yuan and 0.326 billion yuan of positions, respectively.
In terms of industry preferences, the Abu Dhabi Investment Authority's main layout direction in A-shares includes nonferrous metals, pharmaceuticals, automobiles and other fields. The holding industries are mostly in sectors that have been hot this year. In terms of market value, the largest top positions are held in Zijin Mining, which the Abu Dhabi Investment Authority has held in heavy positions for several quarters: from the end of the fourth quarter of 2021 when it first appeared in the top ten list of circulating shareholders until now, it temporarily exited in the third quarter of 2022 and the first quarter of 2023.
Kuwait Investment Authority is the world's first sovereign wealth fund. According to Wind data, as of the end of the first quarter of 2024, the A-share companies with major holdings (appearing in the top ten list of circulating shareholders) held by the Kuwait Investment Authority were 30, with a total market value of about 4.517 billion yuan.
The Kuwait Investment Authority also benefited a lot in the first half of the year. For example, China Coal Xinji Energy rose 87.77% year-to-date, with holdings of 0.306 billion yuan from the Kuwait Investment Authority. Shennan Circuits rose 50.50% year-to-date, with holdings of 0.217 billion yuan. In addition, its other holdings such as Fujian Funeng, Jinneng Holding, Shaanxi Energy, and Accelink Technologies have all risen more than 30% year-to-date.
In the first quarter, the Kuwait Investment Authority added new positions in companies mainly in the resource, energy, and automotive industries, which are also involved in sectors that have risen sharply this year.
The Singapore Government Investment Corporation also holds about 0.179 billion yuan in Huaming Power Equipment, which has also seen a significant increase of 61.68% year-to-date. The Singapore Government Investment Corporation and Temasek Holdings held shares in Proya Cosmetics, which rose 12.56% year-to-date.
However, the three stocks held by the Norwegian Bank did not perform well, with Eastern Communications, Lao Feng Xiang, and Shanghai Baosight Software all falling, with declines of 12.93%, 15.67%, and 19.57%, respectively.
Middle Eastern Sovereign Fund conducts frequent research throughout the year.
It is noteworthy that the above holding data are all based on the top ten shareholders list in the first quarter report of the listed companies, and there may be more holdings that are not exposed that do not enter the top ten list of circulating shareholders. In addition, it is unknown whether the institutions have made adjustments in the second quarter. However, the strategic direction of the Middle Eastern Sovereign Wealth Fund can be glimpsed from their recent research.
Compared with last year, the Middle Eastern Sovereign Wealth Fund has also increased its research efforts on A-shares. According to Wind data, from the beginning of the year to now, the Abu Dhabi Investment Authority has conducted research on 16 listed companies a total of 18 times, covering fields such as new energy, biomedicine, silver, etc.
Popular pharmaceutical stocks include LBX Pharmacy Chain Joint Stock, Brightgene Bio-Medical Technology Co.,Ltd., Yunnan Baiyao Group, Ningbo Sanxing Medical Electric, and Shenzhen New Industries Biomedical Engineering. As for new energy, Abu Dhabi Investment Authority's investment intention is apparent, and it has researched JinkoSolar, Guangzhou Automobile Group, Keboda Technology, and Zhejiang Jingsheng Mechanical & Electrical. Banks researched include Bank of Ningbo, Jiangsu Changshu Rural Commercial Bank, and Qilu Bank.
Kuwait Investment Authority also researched Hengtian Ruishi at the end of March, and Kuwait Investment Office researched Shenzhen Inovance Technology in June. The sovereign fund has also turned its investment focus to the hot A-share topic of artificial intelligence in recent years.