Main points of investment
The assets of two cities and three cities will help to balance the allocation.
At a time of market volatility, how to find a new balance of assets in the post-epidemic era should take a long-term view. This paper starts with the risk parity strategy to find a long-term high-quality asset pool. The return test results show that, compared with the single A-share assets, adding Hong Kong stock assets to the asset pool, the large collection of assets in Shanghai, Hong Kong and Shenzhen can further expand the portfolio income space, but also help to disperse the regional and industry risks.
The return test shows that, especially in the period of sharp amplification of market fluctuations, such as from 2015 to 2016, the integration of Shanghai, Hong Kong and Shenzhen assets not only enables the portfolio to enjoy the benefits of the A stock market, but also uses high-quality Hong Kong stocks for risk control. on the basis of keeping relatively high returns, the risk of the portfolio is greatly reduced, and it is the optimal asset pool considering the dual factors of risk and return.
High-quality assets of Hong Kong stocks, widen the income boundary
Take the price-to-earnings ratio as an example, the valuation of the Hang Seng Composite Index is at a global low in both current and median levels, while the AH premium is at an all-time high, and Hong Kong stocks are expected to usher in a valuation repair.
Looking back in history, the earnings growth rate of the Hang Seng Index is the core variable that drives Hong Kong stocks to obtain absolute returns, and there is a highly positive correlation between the two. According to Bloomberg's latest earnings growth forecast, the Hang Seng Index will achieve positive earnings growth in 2021, which is expected to reach 17.16%, which is expected to drive Hong Kong stocks to achieve absolute earnings.
General situation of CSI Shanghai, Hong Kong and Shenzhen 500 Index
The CSI Shanghai, Hong Kong and Shenzhen 500 Index comprehensively reflects the overall performance of the stocks of listed companies in Shanghai, Hong Kong and Shenzhen. Compared with other broad-based indices, the regional and industry allocation of its constituent stocks is more balanced. It not only helps investors grasp the investment opportunities in the A-share and Hong Kong stock markets, but also helps to control systemic risks.
As of March 9, 2021, A shares accounted for 56.47% of the index stocks, while Hong Kong stocks accounted for 43.54%. The distribution between the two places was relatively balanced.
Huitian Fuzhong Stock Exchange Shanghai, Hong Kong and Shenzhen 500ETF
There are 4 Shanghai, Hong Kong and Shenzhen 500 ETFs on the market, Huitian Fuzhong Stock Exchange Shanghai, Hong Kong and Shenzhen 500ETF (517080), established on February 1, 2021 and listed on February 22, 2021. It is the first ETF, to track the Shanghai, Hong Kong and Shenzhen 500 index and its rate is the lowest, with a management fee of 0.15% / year and a custody fee of 0.05% / year.
