The A-share market welcomes the policy "big gift package"!
On May 15, the CSRC held the 2024 "May 15 National Investor Protection Publicity Day" activity in Beijing, and issued a number of institutional rules closely related to investor protection, such as the Administrative Provisions on Programmed Trading in the Securities Market (for Trial Implementation), the Guidelines for the Application of Regulatory Rules - Issuance No. 10, and continued to promote the steady and healthy development of the industry.
On May 17, the real estate sector ushered in a number of supportive policies. The People's Bank of China, the State Administration of Financial Supervision and Administration, the Ministry of Housing and Urban Rural Development and other departments jointly launched an unprecedented policy "combination punch", which exceeded market expectations.
In fact, since the beginning of this year, favorable policies have frequently appeared, and A-shares have continued to fluctuate upward. Driven by the market, the net value of funds has also "returned".
Wind data shows that as of May 20, there were 4354 partial equity hybrid funds with performance display (A/C category is calculated separately), and more than 50% of the products obtained positive returns within the year. At the same time, the same is true for common equity, balanced hybrid and flexible allocation fund products, with more than 50%, 80% and 60% of the products obtained positive returns respectively.
Among them, Jingshun Great Wall cycle optimization, Bosera growth selection, Southern Development Opportunity held more than 30% of the annual income, Oriental Alpha Xingke held more than 20% of the annual profit of more than 100 products (A/C combined), such as Jingshun Great Wall pillar industry, Harvest Resources Selection, Wanjia Double Engine, Qianhai Kaiyuan Shanghai Hong Kong Shenzhen Huixin.
In addition, the annual returns of active equity funds such as CCB Electronics Industry, Chinese Merchants Smart Life, Hang Seng Qianhai Xingxiang, Wanjia Independent Innovation, Wanjia Technological Innovation, CSCICB Selected Two year Fixed Opening, Furong Value Selection, Tongtai Kaitai and Jinyuan Shun'an Industrial Excellence, all suffered losses of more than 25%.
Looking ahead to the future, BOC International Securities said that in the medium term, this round of real estate policy is not the end. In the future, according to the slope of economic repair, there is still much room for macro policies to be released. Referring to the experience of 2016, the equity market was still hesitant about the strength of relevant policies at the initial stage of the release of the supply side structural reform policy. However, since then, with the continuous verification of relevant mesoscopic data, the market bottom reversal trend has gradually established, and the upward slope has finally started to accelerate. Therefore, the medium-term upward space of this round of market is still worth looking forward to.
Luo Shuai, the fund manager of China Southern Fund, believes that as China's economy enters a stage of high-quality development, many industries have ended the cycle of large-scale capital expenditure, the industry pattern has been further optimized, the market share has focused on industry leaders, the mentality of industry participants has changed, more attention has been paid to the return on capital rather than the rapid growth of revenue, and the intensity of competition in the industry has declined, This is reflected in the decline of capital expenditure and expense rate, as well as the improvement of profitability and cash flow quality in the financial statements, showing a better investment value from the perspective of discounted free cash flow.
Active equity funds continue to "return blood"
In 2024, since the A-share market reached its bottom on February 6, it has continued to fluctuate upward, driving the overall performance of active equity funds.
Wind statistics show that as of May 20, 4353 of the 7728 active equity funds with performance only (calculated separately for category A/C, the same below) had achieved positive returns in the year, accounting for 56%, more than 50%.
Among them, the top three in terms of increase is Jingshun Great Wall Cycle Optimization, which is managed by Zou Lihu alone, with a revenue of 31%. Bosera Growth Selection jointly managed by Zeng Hao and Wang Lingxiao followed, with an increase of 30.86%. The Southern Development Opportunity jointly managed by Luo Shuai and Fan Jiapeng ranks third in the mixed ranking, with an increase of more than 30%.
According to the data of the Fund's first quarterly report in 2024, among the top ten heavy position stocks held by Southern Development Opportunity in one year, more than half of the resource stocks accounted for more than 30% of the total positions; The top ten heavy position stocks selected by Bosera Growth are composed of "coal, gold and oil", accounting for more than 50% of the total position; The top ten heavy positions of Jingshun Great Wall are also mainly concentrated in nonferrous metals and coal industry.
In addition, more than 100 active equity fund products (A/C consolidated) held by Oriental Alpha Xingke in one year, including Jingshun Great Wall pillar industry, Harvest Resources Selection, Wanjia Double Engine, Qianhai Kaiyuan Shanghai Hong Kong Shenzhen Huixin, etc., have a floating profit of more than 20%.
As the net value continues to repair, active equity funds continue to "return". According to Wind statistics, as of May 20, among 4354 partial equity hybrid funds with performance, more than 50% of the products had positive returns in the year, and 511 of 972 ordinary equity funds had positive returns; Of the 44 balanced hybrid funds, 37 obtained positive returns; Of the 2327 flexible allocation funds, 1410 received positive returns.
Cathay Pacific Fund expects that the market will continue to shake up under the support of both internal and external positive factors. In the short-term policy market, we are optimistic about finance, core asset leaders and AI. At the same time, with the real estate policy exceeding expectations, there will be policy game in the future. In addition, we are optimistic about AI when TMT congestion returns to a low level. Cathay Pacific Fund said that its long-term thinking remains unchanged, and it continues to be optimistic about stabilizing value assets and going to sea.
More than 60 active equity funds withdrew more than 20%
It is worth noting that more than 60 active equity funds have withdrawn more than 20% in the volatile rise of A-share market.
Among them, the annual return rate of active equity funds such as CCB Electronics, Chinese Merchants Smart Life, Hang Seng Qianhai Xingxiang, Wanjia Independent Innovation, Wanjia Technological Innovation, CSCICB Selected Two year Fixed Opening, Furong Value Selection, Tongtai Kaitai and Jinyuan Shun'an Industrial Excellence, all suffered losses of more than 25%.
In particular, the outstanding performance of the small and micro cap strategy in 2023 and the theme fund of Beijing Stock Exchange have fallen from high to low this year.
Established at the end of 2023, Jinyuan Shun'an Industrial Zhenxuan is the active equity fund with the largest loss this year. Its major holdings are mostly small and micro stocks, with a loss of 31% in the year.
According to the first quarterly report, as of the end of the first quarter, the equity investment of Jinyuan Shun'an Industry Zhenxuan Hybrid C and Jinyuan Shun'an Industry Zhenxuan Hybrid A accounted for 89.64% of the total assets of the fund, but the shareholding was relatively dispersed, with the top ten positions accounting for 10.73% in total, and the top ten heavy positions were Jujie Microfiber, Sanfu Outdoor, Jinchun Shares, Norbon Shares, Meili Technology, Yantang Dairy Zhiyang Innovation, Huaguang New Material, Hunan Investment and Saite New Material.
The fund with the highest loss of similar strategies also has Furong Value Selection, with a loss rate of nearly 30% during the year.
As of the end of the first quarter, the top ten positions of Furong Value Selection accounted for 1.95% in total, and the top ten heavy positions were Laishen Tongling, Gausbell, Standard Shares, Falsen, Zhongsheng High tech, Time and Space Technology, Halsey, Qingyan Environment, Sine Electric and Beiken Energy.
As for the promising direction in the future, Bosera Fund said that in terms of A-share, the Shanghai Stock Exchange Index continued to fluctuate around 3150 points in the past week, and real estate became the most important focus of the market. The real estate policy was launched in multiple lines to support the real estate chain and improve the industrial dilemma, enhance the market risk appetite, and then wait for the verification of the volume and price data. In terms of structure, the first is the spread of the market in the real estate chain, which focuses on big finance and the starting end. However, for real estate stocks, in the future, the policy catalytic density will decline, the policy effect has not yet appeared, and the probability of upward resistance to stock prices will increase. Second, the macro scenario still does not support a substantial shift to the pro cyclical sector, and insists on the "dumbbell" strategy, that is, resources are optimistic about the medium-term resource bull market, and at the same time, they are optimistic about the short-term recovery trend of value plus technology game.
(Author: Li Yu, Editor: Jiang Shiqiang)
