Embrace China's core assets and pass through bulls and bears
After the Spring Festival, there has been a certain adjustment in the "core assets" with a higher increase in the previous period. Through the calculation, we found that the public offering funds with high positions and holding core assets did not significantly reduce their positions, but still firmly held the core assets. Under the background of loose overseas liquidity, domestic economic recovery and sound monetary policy, this round of adjustment is more about the return of valuation rather than performance factors, and many high-quality core assets will return to a reasonable valuation range after the adjustment.
China's economy has shown great resilience under the impact of the epidemic, rebounding quickly after the epidemic has stabilized, consumption and export trade have both returned to the pre-epidemic growth track, and economic growth will return to the development goals in 2021. In addition, the epidemic has promoted the industry reshuffle, capacity clearance, and optimized the industry pattern. It is expected that the profits of high-quality enterprises will improve, and the performance-to-price ratio of core assets begins to highlight.
In the long run, foreign capital continues to flow into large market capitalization companies, and the reform of the registration system aggravates the differentiation of A-share "survival of the fittest". Compared with US stocks, A-share capitalization still has a lot of room.
In 2021, Nanxiang funds scrambled to raise core assets of Hong Kong stocks. A number of high-quality leading targets of the new economy have landed in the Hong Kong stock market one after another, and the proportion of the new economic sector in the Hong Kong stock market continues to increase, especially in the fields of information technology, optional consumption, health care, and so on, giving the Hong Kong stock market extremely important investment value. Hong Kong stock core assets and A-share core assets can play a complementary role.
Analysis on the Investment value of CSI Shanghai, Hong Kong and Shenzhen 500 Index
The CSI Shanghai, Hong Kong and Shenzhen 500 Index selects the securities of listed companies listed on the Shanghai, Hong Kong and Shenzhen stock exchanges as index samples to fully reflect the overall performance of the securities of listed companies in Shanghai, Hong Kong and Shenzhen.
There are a total of 500 constituent stocks in the index, of which 285 belong to the CSI 300 Index, and 147 stocks are listed on the Hong Kong Stock Exchange. the average market capitalization of the constituent stocks is 160.759 billion yuan, with the sum of the top 20 constituent stocks accounting for 40.42%. In terms of industry distribution, pharmaceutical, non-bank finance, real estate, banking and electronics industries have the largest number of shares; banks, computers, non-bank finance, food and beverage, medicine account for the highest proportion of weight. The average proportion of capital positions of the top 20 heavy stocks going northward is as high as 8.08%, and that of southward funds is as high as 9.41%. The price-to-book ratio of the index is 1.97 times, and the forecast ROE index for 2020 is 11.02%, which is higher than the main broad-based index of A shares and has strong profitability.
During the period from January 01, 2016 to February 26, 2021, the CSI Shanghai, Hong Kong and Shenzhen 500 Index had an annualized income of 7.74%, an annualized Sharp ratio of 0.53, an annualized volatility of 15.50%, and a maximum pullback of 27.12%, outperforming most broad-based indices.
Huitian Fuzhong Stock Exchange Shanghai, Hong Kong and Shenzhen 500ETF
Huitian Fuzhong Stock Exchange Shanghai, Hong Kong and Shenzhen 500ETF (Code: 517080, referred to as: Shanghai, Hong Kong and Shenzhen 500ETF Fund) is the first ETF fund issued by Huitianfu Fund to track the CSI Shanghai, Hong Kong and Shenzhen 500ETF Index. It was established on February 1, 2021. The ETF rate is relatively low, with management rates of 0.15% and escrow rates of 0.05% per year. The current fund manager is Ms. Dong Jin.
Risk hint: the risk of changes in the market environment, historical performance does not represent the future.