Towards the end of the year, despite the continued A-share index, foreign investors are still actively exploring the structural opportunities in the A-share market. According to statistics, in the past month, the semiconductor, medical device and brewing industries have all received a substantial net inflow of northbound funds, among which Haiguang Information and United Imaging Medical have received a large increase in northbound funds. In the view of many institutions, the end of the year and the beginning of the year is the traditional time window for foreign institutions to increase their positions in A-shares, and the return of foreign capital is expected to become an important driving force in the market. In the process of economic bottoming, some industries may have ushered in a better allocation opportunity. Choice data shows that as of November 30, in the past month, the semiconductor, medical device and wine industries have each received northbound funds to increase their holdings by 718.8 billion yuan, 579.7 billion and 274.3 billion yuan, ranking among the top three in all industries. Taking Haiguang Information as an example, the shareholding of northbound funds in the stock has soared by 1018 in the past month5%。In addition, during the same period, the shareholding of northbound funds in United Imaging Medical and Shede Liquor also increased significantly84%。The listed companies related to the above-mentioned sectors have also frequently received foreign capital research recently. For example, in November this year, Eastspring Investments investigated microconductive nano;Binyuan Capital*** investigated Liyang chips;Korea Investment Trust Co., Ltd. investigated Borui Pharmaceutical;Yuanfeng** investigated Yanjing Beer. According to the research report of Industrial **, the end of the year and the beginning of the year are the traditional time window for foreign institutions to rebalance their portfolios and increase their positions in A-shares, and the return of foreign capital is expected to become an important driving force. Looking back at the period from 2017 to 2022**, the northbound capital inflow has a clear "good start" effect, and most foreign investors will significantly increase their positions in A-shares from January to February and December over the years. According to Matthew Kuiford, global head of multi-asset investment management at Fidelity International, the Chinese market has shown investment value, and economic growth is expected to pick up from the current low level in 2024. "According to our base case, China's economy will enter a cyclical recovery in the coming weeks and months, in a stable and controllable state, while strong household spending will bring positive benefits to the consumer sector. Compared to most of the world's markets, China** is currently valued at an attractive level. Matthew Quiford said. In terms of investment direction, Zhou Wenqun, deputy director of Fidelity's first-class department, said that the market outlook is mainly optimistic about the consumption, materials and industrial sectors related to economic recovery, and at the same time pay attention to the rebound of the consumer electronics cycle and the investment opportunities brought by the impact of pharmaceutical policies at the end of the year. "We believe that China's economy is already in the process of bottoming out, so we will strategically focus on sectors with high macroeconomic correlation, such as essential and optional consumption, which will benefit from the steady recovery of the economy. In addition, we also favor sectors and ** with long-term growth potential, such as the industrials, pharmaceuticals sector and selected technology companies. Fidelity *** investment manager Sheng Nan said. Li Dehui, senior manager of J.P. Morgan Asset Management China, is optimistic about the three major sectors of medicine, technology and consumption. He believes that with the aging trend of the population becoming more and more obvious, the demand for medical drugs is growing, and the future pharmaceutical industry has a lot of room for growth.
The tech sector is also an area to watch. We need to focus on the commercialization of AI and the emergence of great companies. There are also many positive signals in the consumer sector, which is expected to find new growth points in the future as consumer confidence recovers and new consumption patterns emerge. We can look for companies in these industries that will continue to grow over the next three to five years. Li Dehui said.
Article**: Shanghai **Daily).