Public funds capture more than 10 times bull shares
Recently, Li Xunlei of China Thailand Securities Research Institute said that according to statistics, from the beginning of the year to the present, the median yield of all partial share public offering funds has reached 36.8%, which is the highest rate of return of public funds since 2010. Looking back at 2019, the median return of partial equity funds also reached 35%.
In the view of many insiders, the outstanding performance of public equity funds in recent years is mainly due to the significant improvement of their ability to capture bull stocks.
Li Xunlei said that many head companies that meet the requirements of institutional allocation have grown at a high speed in recent years, and good performance means good stock price performance. Since 2016, 96 stocks with a 10 times increase have been born in the A-share market. At present, the market value of these 10 times stocks held by public funds is nearly 300 billion yuan, accounting for more than 18% of the total market value of the heavy positions of public funds.
Why can institutional investors capture so many good companies? Li Xunlei gave two reasons: first, the concept of institutional investment is in line with the trend of Chinas economic structure change. For example, most of these 10 times stocks are concentrated in pharmaceutical, food and beverage, semiconductor, new energy and other industries. Taking the relative valuation trend of food and beverage and real estate industry as an example, the transformation of macro-economy from investment driven to consumption driven is very obvious, while institutional investors are not It is more advantageous to grasp the policy orientation.
Second, under the background of increasing concentration, leading companies have begun to appear in some subdivided industries, while institutional investors are more professional and have extensive social resources. The sellers provide various consulting services, which makes them good at finding leading enterprises in the industry. Take Anjing food as an example. In the past few years, the company has rapidly grown into a leader in the frozen food industry, while Harvest Fund has continued to hold heavy positions since 2018, and its shareholding ratio once accounted for more than 10% of the circulating share capital.
As we all know, the rise and fall of a stock actually depends on whether its performance is in line with expectations, that is, the probability of performance realization. When the valuation is high, the digestion and conversion of valuation need to rely on performance to support. Generally speaking, the performance realization probability of industry leaders will be higher than that of second and third tier companies, which means that the reliability of leading stocks is higher. Huian Fund chief equity investment officer Zou Wei said.
Convergence of aesthetic preference of domestic and foreign capital
In recent years, there is a trend of aesthetic convergence between domestic and foreign capital. At the same time, many of the stocks raised by the public are also good for foreign investors.
Taking Lixun precision as an example, the shareholding ratio of BEIXIANG capital in Longji shares increased from 2.61% two years ago to 6.47%, and that of BEIXIANG capital to Longji shares also increased from 2.55% two years ago to 6.96%. In addition, among the 10 times shares in the five years of public offering, Zhifei biology, Kangtai biology, North Huachuang, Shennan electric circuit and other stocks have been significantly increased by foreign investors in the past two years.
In a research report, Huaxi Securities made statistics on the industry distribution of northward capital holdings, and found that the most profitable targets were mainly in pharmaceutical biology, food and beverage, electronics and other industries. This is highly consistent with the industry distribution of public offering heavy positions in recent years.
For a long time, a shares have given higher valuation premium for uncertainty and lower valuation premium for certainty. This is the opposite of the structure of valuation systems in mature markets. After 2017, the valuation level of large market value companies with relatively certainty performance in the future has significantly improved, while the valuation level of companies with many uncertainties has moved down.
Li Xunlei said that certainty premium raised the valuation level of the overall assets of institutional investors, which may be the main reason why the performance of public offering reached a new high in nearly 10 years. Therefore, the balance of the times is tilting towards institutions.
At the corporate level, Chinese companies are very resilient and able to respond quickly to the epidemic. We have even seen that despite the impact of multiple adverse factors, the revenue and profits of many Chinese companies have increased by 30% - 40%. There are many Chinese enterprises that have won a lot of market share from their competitors. I think they will still perform well and grow sustainably because they are more competitive than before. Said Shi bin, head of China equities at UBS asset management. Shanghai Investment Morgan Fund said that a shares have unique long-term track and high-quality companies with great growth potential. With the gradual deepening of Chinas economic transformation and upgrading, in the trend of consumption upgrading, consumption, medicine, technology and other industries have become high-quality track in the A-share market. It can be seen from the portrait of foreign capital stock selection that the pace of smart money is also closely related to these Chinese advantage industries. Editor: Wu Xiaojing source: Shanghai Securities News Editor in charge: Zhong Qiming_ NF5619
Shanghai Investment Morgan Fund said that a shares have unique long-term track and high-quality companies with great growth potential. With the gradual deepening of Chinas economic transformation and upgrading, in the trend of consumption upgrading, consumption, medicine, technology and other industries have become high-quality track in the A-share market. It can be seen from the portrait of foreign capital stock selection that the pace of smart money is also closely related to these Chinese advantage industries.