Baihaifeng: A-share becomes a cost-effective asset in the global market

category:Finance
 Baihaifeng: A-share becomes a cost-effective asset in the global market


A + H shares and gold have become global cost-effective assets

Bai Haifeng said that the current global capital market is relatively pessimistic and lacks confidence in the future economic growth. Compared with Europe and the United States, China has done a good job in epidemic prevention and control. The inflection point of the epidemic is earlier than that in Europe and the United States, and the resumption of production and work is also leading the worlds major markets and countries. In the period of rapid increase of epidemic situation, the withdrawal and fluctuation of A-share and H-share also showed very good resilience. The highest withdrawal of U.S. stock was close to 35%, and the withdrawal of A-share Shanghai and Shenzhen 300 was within 10%.

First, through the stress test of the epidemic situation, from the aspects of capital market and economic recovery, it shows that a + H shares have become a unified market of connectivity, which is the second largest asset scale market in the world with a market value of 60-70 trillion RMB, reflecting a better cost performance. Second, as an anti inflation asset + risk averse asset, the investment value of gold is gradually reflected. In March, central banks bought gold net. In the past month, central banks bought 35 tons of gold net. In the future, from the perspective of inflation, gold is also a high cost-effective asset.

According to Bai Haifeng, the impact of the economic trend of the epidemic is V-shaped, which will cause a rapid economic downturn, but the recovery is also relatively stable. In a long time span, it is not necessary to panic to deal with the impact of the epidemic. At present, experts in the global capital market and financial market all have a positive attitude towards the market due to the alleviation of the epidemic in China. In the past, the A-share market has shown a relatively good price performance ratio, and the RMB exchange rate has also shown stability. Several factors play a comprehensive role. More and more overseas funds will find that the A-share market has a very high allocation value.

Compared with the Shanghai Hong Kong stock connect, the biggest change of Shenzhen Hong Kong stock connect is not only to increase the stock of Shenzhen Stock Exchange, but also to increase the stock of Hong Kong stock and gem. In the process of opening Shenzhen Hong Kong stock connect, the daily trading restrictions are removed. A share and H share form a completely unlimited and interconnected open market, with a market value of more than 60 trillion yuan, second only to the U.S. stock. The second largest market is 201 The reason why MSCI was underpaid in six years was that MSCI had not been included in A-share and passive funds had not been entered.

The foreign capital pool of a shares is about 2 trillion yuan, which is the second largest main position next to the funds of insurance institutions in terms of institutional positions. 2 trillion yuan is still a low allocation compared with Chinas 70 trillion scale market and the worlds second-largest heavyweight stock. From this perspective, a shares have a high cost performance ratio. As the second largest heavyweight stock target in the world, the performance of a shares is excellent, and the capital market is very good The investors of the market will at least adopt standard allocation or over allocation. In the future, A-share will continue to be concerned and invested by foreign investors. The internationalization trend of A-share is the most definite trend in the future.

The return of foreign capital to a shares will favor two types of target

According to Bai Haifeng, the first category is value stocks. Enterprises with strong comprehensive management ability, undervalued value, good profitability, healthy balance sheet and good faith can all be included in the scope of attention; the second category is rare real growth stocks. For example, consumption, banking and manufacturing industries, which are expected to stabilize, will play an important role in Chinas science and technology leading enterprises in the future, whether in consumer electronics or import substitution, and will also be favored by foreign capital. These two dumbbell structures are important features of foreign capital allocation. How do investors operate in Volatility? In the live broadcast, Bai Haifeng said that in the face of market fluctuations, first of all, long-term investment plans should be made and long-term investment and value investment concepts should be firmly adhered to. At this time, it is not appropriate to use short-term perspective to make capital layout; second, enhance the ability of macro judgment, put the capital into the market with confidence in the future and hold it for a long time. Under the influence of the new crown epidemic, there are still enterprises that can maintain good stability, invest capital in assets that can withstand the stress test, and make long-term investment. For ordinary investors, the operational risk is relatively low. Source: editor in charge of Finance and economics of Netease: Ren Hui, nbj9607

According to Bai Haifeng, the first category is value stocks. Enterprises with strong comprehensive management ability, undervalued value, good profitability, healthy balance sheet and good faith can all be included in the scope of attention; the second category is rare real growth stocks. For example, consumption, banking and manufacturing industries, which are expected to stabilize, will play an important role in Chinas science and technology leading enterprises in the future, whether in consumer electronics or import substitution, and will also be favored by foreign capital. These two dumbbell structures are important features of foreign capital allocation.

How do investors operate in Volatility?

In the live broadcast, Bai Haifeng said that in the face of market fluctuations, first of all, long-term investment plans should be made and long-term investment and value investment concepts should be firmly adhered to. At this time, it is not appropriate to use short-term perspective to make capital layout; second, enhance the ability of macro judgment, put the capital into the market with confidence in the future and hold it for a long time. Under the influence of the new crown epidemic, there are still enterprises that can maintain good stability, invest capital in assets that can withstand the stress test, and make long-term investment. For ordinary investors, the operational risk is relatively low.