Long-term funds are increasing their allocation of A-shares. Recently, the annual reports released by listed companies and irregular announcements have held positions of long-term funds such as social security, pensions, and QFII. From the perspective of layout direction, artificial intelligence, medicine and some traditional industries have become the key layout direction of institutions.
Long-term funds appear frequently.
Judging from the recently disclosed annual reports of listed companies, long-term funds such as social security**, pensions, QFII, and public offerings mainly favor three directions, namely the concept of artificial intelligence, medicine and traditional leading stocks with obvious competitive advantages.
Taking AIGC concept stock Guomai Culture as an example, the company's annual report shows that as of the end of last year, among its top ten circulating shareholders, the basic pension insurance **1202 portfolio, the national social security **116 portfolio, GF Science and Technology Innovation Mix, UBS AG, etc. are all new entrants.
Another AIGC concept stock, Focus Technology, has also been increased by institutions. According to the company's annual report, as of the end of last year, the basic pension insurance **1202 portfolio held 6.52 million shares, an increase of 2.96 million shares from the end of the third quarter of last year. In addition, HFT **Hybrid** also increased its position in the company's 1.49 million shares in the fourth quarter of last year, and Caitong Value Momentum Hybrid** was the new top ten circulating shareholders.
Flush annual report shows that in the fourth quarter of last year, an insurance product under Chinese Life Insurance made a big move** The company, as of the end of last year, held 19660,000 shares. According to the annual report of Shengmei Shanghai, a leading semiconductor equipment company, as of the fourth quarter of last year, Oriental Artificial Intelligence Theme ** and Sino Growth Mixed ** have increased their positions in the company.
From the perspective of long-term funds to increase the position of the pharmaceutical target, the annual report of Dian Diagnostics shows that as of February 6 this year, CitiGroup Global Markets Limited held 11.3 million shares, and the National Social Security ** 418 Portfolio held 11.21 million shares, compared with the end of the third quarter of last year, respectively, increased their positions by 52610,000 shares and 76730,000 shares. In addition, BNP Paribas-own funds have also become the top 10 new circulating shareholders of Dian Diagnostics.
Similarly, there is Nanwei Medicine. As of February 2, compared with the end of the third quarter of last year, Schroder Global** series of China A-shares (exchanges) increased its position in Nanwei Medicine 1390,000 shares, the National Social Security ** 413 Portfolio increased its position by 200,000 shares, and E Fund's healthcare industry mix became the top 10 circulating shareholders.
Some traditional industry leaders** are also favored by long-term funds. Taking Sany Heavy Industry, a leading construction machinery company, as of February 5 this year, compared with the end of September last year, the national social security **114 portfolio increased its position by 3 million shares, and the national social security **102 portfolio became the new top ten circulating shareholders. However, the national social security **103 portfolio**800,000 shares.
According to the repurchase announcement issued by Inovance, a leading industrial control company, as of February 23, among the top ten heavy stocks, the social security **114 portfolio held 2575340,000 shares, an increase of 55 compared with the end of the third quarter of last year340,000 shares. Huatai Pineapple CSI 300 ETF is the top 10 circulating shareholders, and E Fund ChiNext ETF has increased its position by 1886280,000 shares.
Chinese and foreign institutions are optimistic about A-shares.
More long-term funding can be expected in the future. In December 2023, the Ministry of Finance and the Ministry of Human Resources and Social Security drafted the Measures for the Administration of Domestic Investment in the National Social Security ** (Draft for Comments). The Consultation Paper clarifies that the scope of direct investment by the Social Security Association is limited to bank deposits, interbank certificates of deposit, qualified direct equity investment, industry**, equity investment** (including venture capital**) preferred shares, approved **index investment, and exchange-traded open-ended index**. At present, the maximum investment ratio of ** and equity assets can reach 40% and 30% respectively.
Judging from the latest views of the current institutions, Chinese and foreign institutions are more optimistic about the equity market. Goldman Sachs Research's China** strategy team recently issued a research report saying that it maintains a high rating on China A-shares, with a yield of 10% on the MSCI China Index and CSI 300 Index in 2024, and a corporate earnings growth rate of 8% to 10%. Promoting structural reforms of listed companies, enhancing policy coherence, and formulating and implementing comprehensive policies to address macro headwinds will be necessary factors for China** to achieve a revaluation.
Pu Jiangning, Senior Managing Director and President of Asia Pacific at Wellington Investment Management, said that China is gradually transitioning to a more sustainable, high-quality and innovation-oriented growth model. If investors have a longer investment horizon, the Chinese market is very attractive based on the current valuation level. In the future, we will continue to explore opportunities in China from the bottom up, focusing on clean technology, green technology and electric vehicles, healthcare, artificial intelligence and other fields.
In the view of rich countries**, under the combined effect of the two expectations of economic recovery and the inflection point of global liquidity, the A** market is expected to continue to strengthen. At present, many indicators such as A-share valuation and risk premium still have good investment cost performance, and the sustainability and elasticity of the future ** depend more on the verification of subsequent economic data.
Yu Yi, a Chinese businessman, said that considering the dislocation of the Sino-US fiscal cycle and the market valuation, the global attractiveness of the Chinese market in 2024 will be relatively rising, and she is optimistic about the A** market in 2024, and innovation and going overseas will be the most important main line for Chinese companies to continue to grow in the next 5 to 10 years.
For the follow-up optimistic direction, Convergence Capital mainly focuses on two aspects: first, pan-dividend assets, that is, assets with low valuations and stable profit expectations; Second, growth assets with more prominent fundamentals, including growth stocks that have overfallen in the early stage, will have clear and definite investment opportunities for companies that are still competitive and continue to grow in earnings after valuation adjustment.
Editor-in-charge: Tao Jiyan |Review: Li Zhen |Supervisor: Wan Junwei.
*: Shanghai ** Daily).