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Social security funds and pension funds, known as "patient capital", have always attracted the attention of investors. With the disclosure of the semi-annual reports of listed companies, their investment trends have gradually surfaced.

A reporter from the First Financial Daily sorted out the materials and found that in the second quarter, the above-mentioned long-term funds preferred resource and energy stocks, and chose to increase their holdings in companies such as Xinji Energy (601918.SH), Yuanxing Energy (000683.SZ), Satellite Chemical (002648.SZ), and Western Mining (601168.SH) in that quarter.

In addition, the social security fund increased its holdings in the second quarter for stocks with mixed performances, such as Yuanxing Energy and Sinoceramic Materials (300285.SZ). Analysts believe that the social security fund and pension funds pay more attention to the medium- and long-term returns of listed companies rather than the short-term fluctuations of stock prices.

Large-scale purchases of companies such as Xinji Energy

In the second quarter, the social security fund bought a large number of resource and energy stocks.

As of the end of the quarter, the most common stock in the portfolios of the Social Security Fund was Xinji Energy. Data showed that the portfolios of 406, 504 and 420 under the name of the Social Security Fund became the fifth, eighth and tenth largest shareholders of the company at the end of the second quarter, holding a total of 84.9852 million shares, accounting for 3.28% of its outstanding shares.

Public information shows that Xinji Energy is involved in two industries, coal and electricity. It is a company whose main businesses are coal mining, coal washing and thermal power generation.

Similar to the large increase in holdings in Xinji Energy, the Social Security Fund became the tenth largest shareholder of Satellite Chemical in the second quarter. As of the end of the quarter, the Social Security Fund 101 portfolio held 16.5529 million shares of the stock, accounting for 0.49% of its outstanding shares.

Satellite Chemical belongs to the "chemical raw materials" sector. It is an integrated production enterprise in the light hydrocarbon industry chain. It promotes the comprehensive utilization of carbon dioxide and hydrogen, and its application areas cover aerospace, automotive industry and other industries.

Three resource stocks, Yuanxing Energy, Western Mining and Gansu Energy (000791.SZ), are also heavily held by the social security fund.

In the second quarter, the 115 and 420 portfolios under the Social Security Fund increased their holdings of Western Mining by a total of 6.1434 million shares, and as of the end of the quarter, their total holdings were 47.2928 million shares.

As of the end of the second quarter, the Social Security Fund 113 portfolio held 57.463 million shares of Yuanxing Energy, but the holdings did not change during the quarter; in addition to the social security fund, pension funds were also optimistic about the stock. In the second quarter, the Basic Pension Insurance Fund 802 portfolio became the company's seventh largest shareholder of circulating shares, with a holding of 42.8214 million shares at the end of the quarter.

In the second quarter, the Social Security Fund 1105 Portfolio became the tenth largest shareholder of Gansu Energy's circulating shares, with a holding of 3.5187 million shares at the end of the quarter.

In addition to the above-mentioned resource and energy stocks, outdoor advertising service provider Focus Media (002027.SZ), telecommunications operator China Mobile (600941.SH), and white goods stock TCL Smart Home (002668.SZ) were also heavily held, but there was no situation where multiple stocks in the same sector were significantly increased by the social security fund.

Similar to social security funds, pension funds were also optimistic about resource and energy stocks in the second quarter.

In addition to the large-scale increase in holdings of Yuanxing Energy, pension funds also increased their holdings of Huafeng Aluminum (601702.SH) by 1.4038 million shares in the second quarter.

Invest for the long term rather than focusing on short-term stock price fluctuations

Long-term funds are optimistic and are increasing their holdings, which may be related to the strong performance of resource and energy stocks in the first half of this year.

In the first half of the year, the A-share market as a whole was volatile and differentiated, with obvious structural trends. In the case of market index differentiation, the resource cycle sector performed outstandingly, driving the investment in the related "periodic table of elements". Wind data shows that as of June 30, resource cycle sectors such as coal, petroleum and petrochemicals, and non-ferrous metals have become one of the few industries in Shenwan's first-level industries that have achieved positive returns this year, among which the coal industry has increased by 11.96% in the first half of the year.

The strong performance of the resource cycle sector has attracted many institutional funds to compete for layout. According to the data of the first quarter report of public funds in 2024, from the perspective of changes in the shareholding market value, the upstream resource sector represented by non-ferrous metals and petroleum and petrochemicals has been significantly increased among the public funds' heavy holdings. Among them, the shareholding market value of the energy and materials sector increased by 3.5 percentage points to 17.4%.

Looking back at the performance of the resource cycle sector in the first half of the year, it mostly showed a state of rising first and then falling back. Before May, affected by the recovery of the global manufacturing industry, the demand for energy and chemical commodities, led by crude oil, continued to expand, raising commodity prices. Excess profits at the upstream mining end also supported costs. Starting in late May, many types of metals began to accumulate inventory, and the market became concerned about downstream demand. The prices of many types of metals fell back and gradually stabilized.

Haitong Securities Research Report believes that the current round of strength in resource products reflects three major market logics: first, the global manufacturing recovery has stimulated expectations for improved demand; second, the Federal Reserve’s previous dovish stance triggered the market to "rush" into trading interest rate cuts; third, changes in the supply and demand structure of some commodities themselves.

A reporter from the First Financial Daily sorted out the materials and found that the share prices of most resource-related stocks that are heavily invested in social security pensions have recorded significant increases this year.

Take Xinji Energy as an example. As of August 9, the stock price has risen by 99.28% this year. In addition, the stock price of Western Mining has also risen by 50.98% this year.

However, it is worth noting that not all resource stocks that are heavily held by social security funds and pension funds have seen their share prices rise throughout the year.

For example, the share price of Huafeng Aluminum, which is heavily held by pension funds, has fallen by 11.2% this year. After reaching a high of 21.15 yuan on May 10, the stock price continued to fall, closing at 15.94 yuan on August 9, down 24.63% from its mid-year high.

The pension fund's 1204 and 16011 portfolios only entered the top ten shareholders of Huafeng Aluminum in the second quarter, with their holdings priced at approximately RMB 19.30. They may currently be facing a certain degree of floating losses.

Another stock that is also heavily held by pension funds and is currently facing a certain degree of floating losses is China National Ceramics Materials, whose share price has fallen 25.52% this year.

An analyst from a securities firm told the First Financial reporter that the social security fund is a reserve fund for social security. Its funds have a long duration and a large scale. This characteristic determines that the investment style of the social security fund is mainly long-term value investment, and it does not focus on short-term stock price performance. Pension funds also insist on long-term investment and long-term evaluation.

From the perspective of investment style, the asset allocation of the above two types of long-term funds is based on the basic ideas of long-term investment and value investment, and increases or decreases positions when the market deviates significantly from the value center at a certain stage. In essence, mean reversion is the core idea of ​​social security fund asset allocation.

Editor on duty: Qisan