optimistic about chinese assets! many foreign institutions have invested in chinese stock funds
2024-09-12
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many foreign institutions have launched chinese stock funds and are optimistic about chinese assets.
on september 12, purong ansheng fund stated that with purong ansheng fund as the domestic investment advisor, its foreign shareholder, the internationally renowned investment institution axa investment, officially launched the china a-share qfii fund in luxembourg in august and was approved for issuance in 13 european markets. this year marks the tenth year that axa investment qfii fund has invested in the chinese market.
according to official website information, axa investment management france ltd. is a professional investment management company under the axa group and one of the largest asset management companies in europe. it was established in 1994 and is headquartered in paris, france. its business covers various fields including stocks, bonds, real estate, derivatives, and diversified asset allocation.
from a global strategic perspective, purong ansheng fund believes that the current market environment is a good time to deploy core a-share assets. chinese asset prices are expected to recover. the issuance of chinese qfii funds in overseas markets also demonstrates foreign capital's long-term confidence in investing in the a-share market.
puyin ansheng fund management said that china's economic environment has been gradually warming up this year. from a fundamental perspective, the domestic economy has entered a stage of steady recovery and has strong economic resilience. according to data from the national bureau of statistics, gdp grew by 5.0% year-on-year in the first half of the year, showing that the overall economy is recovering and improving. import and export, service consumption, investment data, etc. have also given domestic and foreign institutions greater confidence in the recovery of the domestic economy. "at this point in time, compared with overseas mature markets such as the united states, the valuations of some high-quality high-dividend and new economy stocks in the chinese capital market are at historical lows, providing an attractive investment opportunity for overseas investors."
coincidentally, on september 9, british asset management giant m&g investments also announced the launch of a chinese stock fund, providing investors with the opportunity to enter one of the world's most attractive long-term stock selection markets. m&g said that the launch of the fund comes at a time when the chinese stock market is at the bottom of its valuation range and many companies are increasingly focusing on improving shareholder returns.
according to reports, the investment approach of the m&g china fund will focus on approximately 300 chinese stocks, all of which have been screened through m&g investment company's rigorous coverage and investment research for more than 30 years. the fund aims to provide a higher total return (including capital appreciation and dividend income) than the msci china with 100% china a share index in any five years. the fund usually holds 50 to 80 stocks, focusing on high-quality companies with strong balance sheets, sustainable cash flows and attractive valuations.
"we believe that china's current stock market capitalization is too small compared to the size of its economy, and many stocks are valued at compelling levels," said david perrett, m&g china fund manager and co-head of the asia-pacific equity investment team. at the same time, many chinese companies have shown greater operational resilience in recent difficult times and are increasingly focused on maximizing profits and increasing shareholder returns by increasing dividends and stock buybacks.
david perrett further stated, "in addition to continued corporate self-rescue, many chinese companies are also leading in global growth areas such as renewable energy and digital supply chain management. we believe that our bottom-up stock selection approach, coupled with strict risk management, should be able to bring investors sustained and attractive returns."
at the same time, on august 28, kraneshares, a new york-based american investment company, also announced the launch of the kraneshares china alpha index etf (stock code "kcai") on the new york stock exchange.
the characteristics of the kcai fund are: stocks are selected from the stock pool of the csi 300 index, the position of a single stock in the etf will not exceed 5%, and the etf uses ai investment decision-making technology to rebalance once a month. the underlying index of the kcai fund is the qi china alpha index.
kraneshares inc. said the unique characteristics of china's a-share market, such as the high proportion of retail holdings and high volatility, make it potentially an important source of alpha.
as of september 11, the top ten holdings of kcai fund were zhongji xuchuan (300308.sz), fuyao glass (600660.sh), foxconn industrial internet (601138.sh), nari group (600406.sh), changan automobile (000625.sz), cicc gold (600489.sh), agricultural bank of china (601288.sh), shandong gold (600547.sh), hua xia bank (600015.sh), and bank of china (601988.sh).
the paper reporter ding xinqing
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