Due to the downturn in the real estate cycle and the expected decay of the overall situation, China's equity assets will be poor in 2023. For 2024, Han Dongyan, general manager of the equity investment division of Sino Analytica, believes that when the market is changing, we should focus more on the mining and layout of long-term value, and find a bright future trajectory in fluctuations.
The products managed by Han Dongyan include Sino Advanced Manufacturing, Sino Analytica Industry Rotation and Sino Analytica Small and Mid Cap Select.
In 2023, the performance of China's equity assets will not be very good, and Han Dongyan believes that the market's best performance can be said to be both a decline in earnings and an impact on valuation. However, in her 2023 investment strategy, she adhered to the strategic idea of "looking at the long-term and looking at the big picture, and doing the dynamic and practical", seeing that the domestic economy is full of hope for high-quality development and the continuous emergence of new industrial momentum, thinking of the difficulties under the downward trend of the domestic real estate cycle and the tense global geopolitical situation, and also striving to respond to the phased uncertainty of the market from the perspective of comprehensive and prudent asset allocation, and from the perspective of longer-term investment, she is committed to "representing the future, the industry trend is good, and the valuation is not high" of the industry selects listed companies that are "getting better, faster, bigger, and inexpensive".
For the outlook of China's equity assets in 2024, Han Dongyan gave 8 words: see the light in difficult moments.
Han Dongyan believes that the economy has cycles and is expected to be excessive. In the investment process, we sometimes need to go with the trend, and sometimes we need to think backwards, and we tend to think that it is more valuable to focus on the long term and think backwards when the market is undervalued as a whole, especially when the mainstream ** valuations that represent China's economy have become more attractive.
The economy and capital market is a complex and delicate system, economic growth momentum, geopolitical evolution, policy, reform direction, business operations and residents' expectations and other factors will be mutually causal, complex interpretation, as long as the policy is objective and pragmatic, enterprises and residents are actively working hard, even if the process inevitably occurs cyclical and tortuous, in the long run will show a spiral upward development trend.
She further said that from the perspective of economic fundamentals, the current difficulties and challenges are temporary, and looking ahead, corporate earnings are likely to stabilize and rebound. At present, the counter-cyclical adjustment of macro policies has gradually increased, with the gradual resolution of risk problems in key areas such as real estate and local debt, the formation of new quality productivity promoted by scientific and technological innovation and the transformation and upgrading of traditional manufacturing industries, domestic demand still has huge potential to be released, and at the same time, with the expansion of high-level opening up, new momentum for external demand will continue to form.
Once the expectation is formed or damaged, it is difficult and long to reverse or repair, but it is this excessive expectation that will give time and space to value investment, although the process is tormenting, the correction will come, she said, we will use patience, professionalism and a positive attitude to continue to look for investment opportunities brought by the high-quality development of China's economy.