At present, we are in the era of shortage of core assets, with the slowdown of economic growth and the emergence of differentiation characteristics under the stock economy, the production enterprises of brand consumer goods, high-tech enterprises with core technology patents and Internet monopoly enterprises will all become core assets, which are worthy of our long-term allocation. At present, the valuation level of Hong Kong stocks is low compared with the international level, and the premium of AH shares is still high. With the acceleration of southward capital inflows, the premium of Hong Kong stocks converges into a major trend, and the investment value of Hong Kong stocks as core assets is highlighted. With the gradual recovery of the global economy in 2021, China, one of the world's leading product exporters, will greatly benefit from the pick-up in demand brought about by the global economic recovery. Compared with the current global assets, the profits of target companies in Shanghai, Shenzhen and Hong Kong are likely to exceed expectations. At the same time, the allocation value of RMB assets in the desolation of global assets is prominent, with strong macroeconomic momentum, high corporate earnings growth, high dividend yield and stable currency value, which will also obtain continuous applications from international capital to Chinese-themed funds. The Shanghai-Hong Kong-Shenzhen Stock Connect provides a convenient channel for the exchange of capital between A shares and Hong Kong stocks, A shares and Hong Kong stocks have their own advantageous industries and characteristic enterprises, and the Hong Kong Stock Connect mechanism can promote the integration of core assets of the two places, and their advantages complement each other day by day. The Shanghai-Hong Kong-Shenzhen 500 Index and the fund products that track the index introduced in this paper focus on high-quality enterprises in Shanghai, Shenzhen and Hong Kong, providing convenient tools for investors to make long-term allocation.
Basic situation of CSI Shanghai, Hong Kong and Shenzhen 500 Index
Compilation idea: CSI Shanghai, Hong Kong and Shenzhen 500 Index selects stocks within the range of interconnection listed on the Shanghai, Hong Kong and Shenzhen stock exchanges as index sample stocks to fully reflect the overall performance of the stocks of listed companies in Shanghai, Hong Kong and Shenzhen.
The characteristics of the index: the constituent stocks are mainly large and medium-sized stocks, and Hong Kong stocks account for the largest weight and quantity; the industry coverage is comprehensive, and the distribution of large industries is close to that of the Shanghai and Shenzhen 300; the top ten heavyweights are all leading stocks in their industries with high profit quality; active trading in recent years, good liquidity.
Index performance: compared with the comparable index, the volatility of the index is small, the Sharp ratio is high, the absolute valuation is lower, the relative valuation percentile is higher, and the profitability of constituent stocks is strong.
Huitian Fuzhong Securities Exchange Shanghai, Hong Kong and Shenzhen 500 ETF
Huitian Fuzhong Stock Exchange Shanghai, Hong Kong and Shenzhen 500 ETF (517080.SH), issued from January 20, 2021 to January 26, 2021, is managed by Huitianfu Fund, which was established in February 2005 and is one of the first-class comprehensive asset management companies in China. As of January 22, 2021, the company has 168 funds with a fund size of 792.989 billion yuan, ranking 3x144 among all fund companies, covering stock funds, index funds, QDII funds, mixed funds, bond funds and money market funds and other products.
Risk hint: the conclusions of this report are based entirely on public historical data, some of which are lagging behind, and there is a risk of inaccuracy provided by third-party data. the conclusions of research and analysis of fund products and fund managers do not predict their future performance, nor can they guarantee their future sustainability, nor do they constitute a guarantee of investment returns or investment recommendations. Product performance is affected by multiple factors, such as macro environment, industry fundamentals more than expected changes, market fluctuations, style transformation and other factors, there is a certain volatility risk.
