On November 13, according to the latest position data submitted by qiaoshui fund to the CSRC, qiaoshui slashed the top ten positions of emerging market assets in the third quarter, and some emerging market ETFs were cut down. However, qiaoshui still slightly increased its holdings in Chinas ETF and China capital stocks, indicating its optimism for Chinas economy.
Interestingly, the investment strategy of qiaoshui fund is roughly similar to that of domestic QDII, and some QDII funds look down on emerging markets relying on exports. By the end of the third quarter of this year, among the top ten investment objectives of all QDII funds, the proportion of investment in emerging markets has also declined significantly. Domestic demand may also be the reason why Bridgewater continues to be optimistic about China.
Sudden reduction in emerging markets
According to the latest position of qiaoshui fund, the third quarter of qiaoshui fund significantly reduced the weight of emerging market ETFs in positions. In the third quarter, qiaoshui fund significantly reduced the weight of pioneer pilot FTSE Russell emerging market ETF, with a cut proportion of 21%. The position of anshor core MSCI Emerging Market ETF also decreased by 25%. The proportion of anshor MSCI Emerging Market ETF in the portfolio was less than 5%, and the position was cut in half. Only Brazils ETF was boosted by Bridgewater in the third quarter. Overall, the worlds top institutional investor has significantly reduced the investment weight of emerging markets.
It is worth mentioning that qiaoshui fund started to increase its positions in emerging markets in the fourth quarter of last year. At that time, its top ten positions were all ETF index funds. At that time, Bridgewater fund increased its position in pilot emerging market ETF index fund, and isharesmsci emerging market ETF fund was significantly increased by 3.0263 million shares. At the same time, qiaoshui fund also took a fancy to Korea ETF fund. During the fourth quarter of last year, qiaoshui fund unexpectedly increased the position of MSCI Korea ETF from 480000 at the end of the third quarter to 3.31 million at the end of last year. The market value of position also soared from 33 million at the end of the third quarter of last year to 195 million at the end of last year, and entered the top ten positions list for the first time.
QDII fund operation is the same
The global investment strategy of QDII fund seems to have some linkage with qiaoshui fund.
According to wind data, since the fourth quarter of last year, QDII funds began to add to emerging markets. By the second quarter of this year, the investment proportion of QDII funds in emerging markets reached a stage high. In the second quarter of this year, QDII fund managers actively increased their positions in India and Southeast Asia emerging markets. At the end of the first quarter of this year, the global investment proportion of QDII fund in India was less than 1%, but by the end of the second quarter of this year, the investment proportion of QDII fund in India market had exceeded 1%, and at the same time, it increased its holdings in Southeast Asia market.
However, since the third quarter, the overseas investment of QDII funds has significantly reduced the layout of emerging markets. According to the report at the end of the second quarter, QDIIs investment in India, Thailand and Indonesia accounted for 12.67%, 5.09% and 4.01% respectively, while the U.S. stock market only accounted for 7.54%. By the end of the third quarter, the QDII funds share of investment in the Indian market had fallen to 10% and that in Thailand to 4.63%. In contrast, the QDIIs investment in the US stock market increased from 7.54% to 9.12%.
From the overall position of QDII, wind data shows that by the end of the third quarter, excluding the Chinese market (including Hong Kong), the top ten investment destinations of QDII, the proportion of investment in emerging markets is 5.68%. At the end of the second quarter, emerging markets accounted for 5.83% of the top 10 positions. Although the proportion of Chinese fund companies investment in emerging markets has not declined as much as that of qiaoshui fund, it does reflect some common views of institutional investors in China and the United States on emerging markets.
The world is bustling with interest. Why should qiaoshui fund reduce its holdings in emerging markets? Obviously, there is no obvious effect of making money. In the third quarter report, the Asia Pacific advantage QDII fund of Shanghai Investment Morgan highlighted the problems faced by several emerging markets. The fund manager said that the exports of the export-oriented countries, including South Korea, Taiwan and Singapore, were declining, and Indias GDP in the second quarter also dropped from 8% to 5%, which was rare. There are also different problems in India. For example, the lack of non-bank financing gold chain leads to insufficient liquidity, the decline of consumer loans, and the new low level of car sales in recent years. Finally, the Indian government announced tax cuts, hoping to boost the economy. Although there are some good news, the overall market is still falling.
The above problems caused by the recession of some export dependent emerging economies, or on the other hand, it can be explained that while qiaoshui fund slashes its positions in emerging economies, it can still increase its positions in China slightly. Obviously, China is a huge domestic demand market.
Bridgewater still prefers Chinese assets
Although the bridge water fund significantly reduced its holdings in emerging markets in the third quarter, it may be a structural strategy. This structural strategy is reflected in the fact that although the proportion has been reduced as a whole, some countries in emerging markets, such as China and Brazil, continue to increase their holdings by Bridgewater.
South Korea, which has been regarded as the leader of emerging economies, is still the top ten investment objects of QDII in China. However, from the latest top ten positions disclosed by qiaoshui fund, the top ten positions of South Korea ETF fund that entered the top ten positions at the end of last year have disappeared, but Brazil ETF continues to stay in the top ten positions. Moreover, qiaoshui fund increased its holding of Brazil ETF fund in the third quarter.
At the same time, qiaoshui fund also increased its holdings of two Chinese theme ETFs during the third quarter. Although the two Chinese theme funds failed to enter the top ten positions, the total market value of the two funds also exceeded $67 million.
A more direct indication of the positive outlook on Chinas economy is the purchase of Chinese enterprises by the bridge water fund. Comprehensive media reports, bridge water fund in the third quarter of this year, new into China express and Weilai car, while increasing the holdings of Alibaba, iqiyi, Tencent music, but a small amount.
It is worth mentioning that on November 12, well-known private Jinglin assets also submitted a position report to the CSRC, showing that the top ten positions of Jinglin assets by market value in the third quarter were Alibaba, Facebook, New Oriental, pinduoduo, huanju era, Momo, sea, Jingdong, qudian and Taibang biology, a pharmaceutical company. The total market value of U.S. equity positions is $1.612 billion.
Similar to qiaoshui fund, Jinglin also maintained a great interest in zhonggai stock in the third quarter. Alibaba, the largest holding company with a margin of 35%, had a market value of $725 million at the end of the period, accounting for 45% of the total market value of its U.S. holdings. This is the second consecutive quarter of Jinglins increase in holdings of Alibaba. Due to Alibabas special e-commerce consumption attributes, qiaoshui fund, Jinglin Alibaba has shown confidence in Chinas economy.
Why do top institutional investors like Chinese assets? At the beginning of August, Dario announced on youtube, the LinkedIn business and video website, that he and senior portfolio strategist Jim? Jim Haskels conversation, in which he talked a lot about China.
Dario believes that now is a good time to enter China. China is pushing forward reform and opening up. You can choose to enter early or late, but it is better to enter early. Chinas stock market is being gradually incorporated into MSCI index. In addition, more attention must be paid to portfolio diversification.
Dario suggested that global investors get involved in China now. for many investors, the Chinese market is still new, he said. New things are always scary, but you have to overcome them. In general, people are reluctant to try new things and are biased against unfamiliar things, but its smart to get involved in a market that can help you diversify your investment and keep the economy growing.
When it comes to the risks of investing in China, Dario believes that there are problems in the global market, with different problems. China has its own problems, but on the whole, Chinas problems are not more prominent than other markets. In his view, the real danger is not to spread the risk in the current situation. To spread risks, we need to enter China. From this point of view, it is very dangerous not to invest in China.
It is worth mentioning that domestic demand continues to stimulate Chinas economic growth. In the past double 11, Alibaba and Jingdong, the Chinese e-commerce giants, announced a total of more than 60 billion US dollars in double 11 transactions, setting a historical record. In the evening of November 12th, the WeChat public number of the peoples Bank of China released the data. On the day of double eleven, the net Union and the UnionPay handled the total amount of the network payment business 1 billion 779 million times, the amount was 1 trillion and 482 billion 70 million yuan, up 35.49% and 162.60% respectively over the same period.
Source: responsible editor of securities companies in China: Yang bin_nf4368