The global economy gradually recovers in 2021, and China, as one of the most important exporters of products, will benefit from the recovery in demand brought about by economic recovery. At the same time, capital inflows from the south will accelerate, AH premiums are likely to subside, and the investment value of Hong Kong stocks as core assets will be highlighted. A-share Hong Kong stocks each have high-quality companies. Huitianfu Fund has issued the China Securities Shanghai-Hong Kong-Shenzhen 500 ETF (trading code 517080) and the China Securities Shanghai-Hong Kong-Shenzhen 500 Index (H30455) to help investors integrate the core assets of A-shares and Hong Kong stocks, which is worthy of investors' continued attention.
Due to the spread of the COVID-19 pandemic and a series of uncertainties such as trade frictions between China and the US, the global economy was hit hard in 2020. In 2021, the successful development of a vaccine is expected to improve the global epidemic, Sino-US relations will gradually ease, the Brexit agreement is signed, Biden confirms coming to power, and the global economy will gradually recover. Among them, China's economy is ahead of the rest of the world.
In order to cope with the economic depression brought about by the COVID-19 pandemic, the Bank of America carried out a major monetary policy campaign, and the US dollar continued to depreciate. This will cause capital to flow out of the US market and into emerging markets such as the Hong Kong stock market.
Furthermore, the RMB has entered a stage of appreciation, which will make the Chinese market more attractive to capital.
A-shares focus on traditional industries, while there are many emerging companies in Hong Kong stocks. Judging from the weight comparison of A shares and H shares in the Shanghai-Hong Kong-Shenzhen 500 in recent years, the changes are relatively stable, and the weight is basically balanced. The Shanghai-Hong Kong-Shenzhen 500 Index integrates A-shares with Hong Kong's core assets, playing a complementary role. At the same time, the valuation level of Hong Kong stocks is in a hollow. As the economy recovers, the Hong Kong stock market will gradually recover.
Since 2016, the sentiment of the Shanghai-Hong Kong-Shenzhen 500 Index has continued to be high. As of March 2021, the cumulative profit of the China Securities Shanghai-Hong Kong-Shenzhen 500 Index was as high as 54.09%, significantly superior to all major broad-based indices, and the volatility was low, with good Sharpe performance.
The Huitianfu China Securities Shanghai-Hong Kong-Shenzhen 500 ETF Fund (transaction code 517080), which tracks the China Securities Shanghai-Hong Kong-Shenzhen 500 Index (H30455), was listed and traded on February 22, 2021. The management fee rate was 0.15% and the escrow rate was 0.05%, all of which were the lowest in similar products.
Huitianfu Fund Management Co., Ltd. is one of the first regulated fund management companies in China. The managed fund products of Huitianfu Fund cover stock funds, index funds, hybrid funds, bond funds and money market funds. The multi-level product line with different risk-return characteristics has been basically perfected. The performance of the company's funds has been tested by bulls and bears. The overall performance is excellent, and the long-term investment performance continues to lead the industry.
Risk warning: This report is for investment reference only. The fund's past performance does not indicate its future performance. At the same time, it is necessary to pay attention to specific risks, such as recovery falling short of expectations and increased market turmoil.
