news

한어Русский языкEnglishFrançaisIndonesianSanskrit日本語DeutschPortuguêsΕλληνικάespañolItalianoSuomalainenLatina

before the holiday, the shanghai composite index surged by more than 500 points, reaching 3,300 points. a-share markets were closed during national day, and the hong kong stock market surged. according to wind data, as of october 7, 2024, the hang seng index and the hang seng technology index closed at 23099.78 points and 5386.48 points, both rising to about two and a half years highs.

with the introduction and implementation of various policies, the internal and external environment facing china's equity assets has undergone directional changes, and the expectations and confidence of global investors have also greatly improved. market sentiment is getting warmer across the board. how to seize the opportunities in a-shares and hong kong stocks? which etfs are worth paying attention to?

foreign investors are bullish on china and focus on core a-share assets

representative etfs: a50 etf fund (159592) and its feeder funds (a: 021208, c: 021209)

stimulated by a series of favorable policies, foreign investment institutions have become bullish on china and long on china. blackrock upgraded its rating on chinese stocks to "overweight" from "neutral". morgan stanley recently stated that policy support measures will help improve investor sentiment and liquidity, and a shares may outperform the entire emerging market. value partners, one of asia's largest asset management companies, predicts that international investment institutions will continue to increase their investment allocations to chinese assets. japanese brokerage nomura securities also recently raised its year-end forecast for the msci china index by 10%.

compared with traditional broad-based indexes, the constituent stocks of the csi a50 index cover more balanced industries. specifically, based on the compilation rules, the index not only covers traditional economic leaders, but also includes leading companies in the emerging economy, taking into account the core assets of the two major styles of value and growth. at the same time, the csi a50 index includes leading companies with large market capitalizations in various industries and has the characteristics of high growth, high quality, high dispersion, and high elasticity. in addition, the index takes into account esg factors and interconnection factors, and strives to help domestic and foreign investors better invest in and allocate china. in addition to the a50 etf fund (159592) and its feeder funds (a: 021208, c: 021209), it focuses on the top 500 leading stocks in the entire market, or the local "new benchmark" index tool a500etf ( code: 159339) will also be listed soon, investors can also focus on it.

(reference information: china fund news, "the "china dragon" etf has been launched on u.s. stocks and foreign investors are bullish on china, 2024.10.5; yinhua financial advisor, "shocking the market, why is csi a50 so "conspicuous"?", 2024.8. 27)

benefiting from hard technology + domestic substitution, mass entrepreneurship and innovation performed strongly

representative etfs: science and technology 100 etf (588190) and its feeder funds (a: 019859; c: 019860), mass entrepreneurship 50 etf (159782)

recently, the strong performance of the science and technology innovation board and gem has attracted widespread attention in the capital market. according to analysis, the core reason for the increase lies in the concepts of "hard technology" and "domestic substitution" behind it, that is, "special evaluation." ‌this concept emphasizes the reshaping of the valuation of hard-core technology stocks under the guidance of the transformation of new productive forces, which will help develop new productive forces and achieve another take-off of factor productivity‌.

in the context of fierce international competition, china attaches great importance to technological innovation and technological self-improvement. against this background, the government has also introduced a series of policies to support the development of the science and technology innovation board and the growth enterprise market. for example, the china securities regulatory commission has formulated the "sixteen measures for the capital market to serve the high-level development of technology enterprises". the science and technology innovation board adheres to the "hard technology" positioning, the gem serves growing innovative and entrepreneurial enterprises, highlights the positioning of the science and technology innovation board and the gem, sets an upper limit for application scale, and more accurately serves early-stage technology enterprises; the "guidelines for the evaluation of science and technology innovation attributes (trial)" are revised to raise the listing threshold. emphasize the quality of science and technology innovation; launch the "eight rules for the science and technology innovation board" to support high-quality industrial mergers and acquisitions, and establish a "green channel" for mergers, acquisitions and reorganizations of technology-based enterprises, etc. (information reference: securities times, "china securities regulatory commission's big news! 16 measures to establish a shelf issuance system for the science and technology innovation board and gem to fully support the development of technology companies", 2024.4.19)

as the second broad-based index on the science and technology innovation board, the constituent stocks of the science and technology innovation 100 index cover 100 top students on the science and technology innovation board, with labels such as "hard technology" and "small but beautiful". according to wind data, as of october 6, 2024 on that day, technology growth industries such as medicine and biology, electronics, power equipment, and computers accounted for a relatively high proportion of the weight in the index. as a representative of industry backbones and segmented leaders on the science and technology innovation board, "science and technology 100" may be an important choice for investing in a-share high-tech growth companies. science and technology 100 etf (588190) and its feeder funds (a: 019859; c: 019860 ) provides investors with an efficient tool for one-click layout.

(data source: wind, as of 2024.10.6, the industry classification is shenwan first-level industry classification; data reference: blue whale finance "a-shares surged, none of the 576 science and technology companies "left behind", 66 stocks hit the daily limit", 2024.9 .30)

the double entrepreneurship 50 index, which is the csi science and technology innovation and entrepreneurship 50 index, selects 50 emerging industry listed company securities with larger market capitalization from the science and technology innovation board and gem as index samples to reflect the representative emerging industry listed company securities in the above sectors. overall performance. this index is the first hard-core technology index on the market to lay out "mass entrepreneurship and innovation". mass entrepreneurship and innovation 50etf (159782) may be a convenient tool for investors to deploy "one-click" plans for the science and technology innovation board and gem. (reference: huatai securities "q&a on mass entrepreneurship 50 etf hot topics", 2021.6.18)

real estate policies have been introduced intensively, which is good for the real estate sector

representative etf: real estate etf (159768)

real estate policies were introduced intensively in september. on september 24, the central bank, the monetary authority, and the china securities regulatory commission issued a policy package, mentioning lowering existing mortgage interest rates and lowering down payment ratios for first and second home loans. at the politburo meeting on september 26, it was stated that "it is necessary to promote the real estate market to stop falling and stabilize." the politburo meeting mentioned for the first time "supporting the revitalization of existing idle land." on september 30 and october 1, beijing, shanghai, shenzhen and guangzhou successively adjusted demand-side restriction policies.

analysts said that the policy combination at the end of september will have a positive effect on the sales side of real estate fundamentals and will have a positive effect, and is expected to promote positive monthly sales growth during the "golden nine and silver ten" period of real estate. from an investment perspective, real estate etf (159768) may usher in better allocation opportunities.

(reference: zheshang securities' "real estate industry 2024q4 investment strategy: real estate second-phase strategy, differentiation is coming, let's discuss the short with the long", 2024.10.5)

market sentiment heats up, and "strong market flag bearer" securities firms gain attention

representative etf: brokerage etf (159842)

market sentiment has heated up recently, and the brokerage sector has received market attention as the "flagbearer of a strong market". analyzing from the three dimensions of policy, valuation and performance, the current brokerage sector may have strong support:

policy support: on september 26, the central financial office and the china securities regulatory commission jointly issued the "guiding opinions on promoting medium- and long-term capital entry into the market." professional analysts believe that the non-bank sector is the core income sector that this policy will actively turn to. the entry of medium and long-term funds into the market will significantly optimize the capital market ecology and consolidate the cornerstone of the long-term development of securities companies.

valuation advantages: the current valuations of securities firms and fund holdings are still at historically low levels, and valuation flexibility is high. under the current background of “warmer policy tone” + “driven by improved liquidity”, securities companies’ low valuations and strong beta advantages may be highlighted.

performance expectations: under the trend of market recovery, securities companies' annual performance growth expectations are further improved. driven by strong policies, the equity market has given positive feedback recently, and expectations for industry fundamentals have quickly turned optimistic. the profitability of the industry in the fourth quarter is expected to improve compared with the first three quarters.

(reference data: guojin securities' "the goal of "long-term money and long-term investment" is clear, and securities firms are expected to benefit from the institutionalization trend in the long term", 2024.9.30; centaline securities' "morning meeting focus", 2024.9.30)

a new wave of a-share mergers and acquisitions may begin, and state-owned enterprises will continue to benefit

representative etfs: central enterprise etf (159959),

central enterprise technology leading etf (562380) and its feeder fund (a: 019508; c: 019509)

from the china securities regulatory commission's "3.15 new deal", the new "nine national rules" to the newly released "six rules on mergers and acquisitions", decision-makers have continued to introduce policies to help listed companies' mergers, acquisitions and reorganizations improve quality and efficiency.

state-owned enterprises are the “main force” in my country’s m&a and restructuring market. agency statistics show that in the past five years as of september 23, the level of participation of state-owned enterprises represented by central enterprises in mergers, acquisitions and reorganizations was significantly higher than that of other types of listed companies.

in the past five years, major a-share mergers, acquisitions and reorganizations have mostly occurred in central state-owned enterprises.

data source: wind, statistical interval: 2019.9.23-2024.9.23; note: major mergers, acquisitions and restructuring events only count domestic mergers and acquisitions and restructuring events where the bidder is a listed company. statistics are based on the first disclosure date, and the transaction progress is "in progress" ” or “completed”, excluding transaction failure events, the industry affiliation shall be based on the sw first-level industry of the bidder.

from a strategic perspective, mergers, acquisitions and reorganizations are an important way for state-owned enterprises to improve their quality, become bigger and stronger, and for state-owned capital to optimize their industrial layout. looking forward to the market outlook, the strategic reorganization and professional integration of central enterprises may be one of the main investment lines worthy of attention.

(reference: soochow securities' "in-depth research series on m&a and reorganization (1): a-share m&a and reorganization set sail again, pay attention to five major investment clues", 2024.9.29)

multiple factors resonate, and it’s time to pay attention to the hong kong stock technology sector

representative etf: hong kong stock technology 30 etf (513160)

while a-shares have rebounded sharply, hong kong stocks have also been "rising". analysts say that hong kong stocks are more flexible than a-shares because they are sensitive to external liquidity and follow interest rate cuts under the linked exchange rate arrangement. in addition, the relative performance of hong kong stocks is supported by relatively better profits, more thorough valuations and position liquidations.

(reference: cicc "china market under the fed's interest rate cut", 2024.9.20)

at the same time, institutional analysts believe that as the federal reserve cuts interest rates, growth sectors that are more sensitive to interest rates, such as biotechnology and technology growth, are expected to directly benefit from market performance.

(reference information: cicc "hong kong stocks: how much room for rebound after the interest rate cut is implemented?", 2024.9.20)

in terms of policy support, the central bank recently stated that it will focus on key links in high-quality development, set up re-loans for technological innovation and technological transformation, and increase financial support for technological innovation and equipment upgrades to benefit technological growth. (source: china news network, "central bank: create a good monetary and financial environment for stable economic growth and high-quality development", 2024.9.24)

in terms of industry trends, the recent release of a new ai model series, openai 1, marks revolutionary progress in the ai ​​field. artificial intelligence is an important driving force for a new round of scientific and technological revolution and industrial transformation. under the development of a new wave of ai innovation, the performance and valuation of technology companies are expected to increase accordingly. (reference information: china fund news, "hong kong stocks are soaring! these funds are making a big comeback, with a maximum increase of more than 20%", 2024.9.27)

policies strongly promote consumption and increase income, which is conducive to the recovery of consumer confidence

representative etf: hong kong stock consumer etf (159735)

supported by the rebound in confidence in the consumer sector, hong kong stocks performed better in the consumer sector. market participants believe that the current recovery in consumption is closely related to current market policies. the agency generally divides policies into two categories: those that promote consumption and those that increase income.

consumption promotion: on september 25, shanghai decided to invest 500 million yuan in municipal fiscal funds to issue "le·shanghai" service consumption coupons in four areas including catering, accommodation, movies, and sports, and will start on september 28. first round of coupon issuance. on september 26, seven departments including the ministry of agriculture and rural affairs jointly issued a notice to encourage qualified places to issue consumer coupons to stimulate milk consumption.

income category: on september 25, the "opinions of the central committee of the communist party of china and the state council on implementing the employment priority strategy to promote high-quality and full employment" was released, deploying 24 measures to continue to promote the effective improvement of the quality of employment and the reasonable growth of the quantity. on september 26, the political bureau meeting was held and it was proposed that "it is necessary to introduce a private economy promotion law to create a good environment for the development of the non-public economy, to combine the promotion of consumption and benefiting people's livelihood, to promote the increase of income of low- and middle-income groups and to improve the consumption structure." .

according to analysis, this round of policies not only repeatedly mentions words such as "promoting employment and promoting consumption", but also proposes specific measures such as "promoting the private economy" and "promoting the income increase of low- and middle-income groups". each policy directly addresses the pain points of current consumption. it may be conducive to the recovery of consumer confidence and the improvement of income expectations in the future.

(data reference: huajin securities "analysis of food and beverage industry dynamics: three questions and three answers to look at policies and be firmly optimistic about consumer stocks", 2024.9.27)

pharmaceutical export data is impressive, and innovation overseas is worth looking forward to

representative etfs: hong kong stock connect pharmaceutical etf (159776), innovative drug etf (159992) and their feeder funds (a: 012781; c: 012782)

first of all, the federal reserve's interest rate cut cycle has begun, and innovative drugs, as one of the interest rate-sensitive sectors, may fully benefit.

secondly, the overseas introduction of innovative drugs brings new growth points. according to statistics from yaozhi.com, there will be more than 50 cross-border license-out transactions for domestic innovative drugs in 2023, with a potential total amount exceeding us$40 billion. in the first half of 2024, domestic innovative drugs reached 25 cross-border license-out transactions, with a potential total amount of more than 27 billion yuan. as more domestic innovative medical devices make clinical progress, innovative overseas cooperation projects are expected to continue to maintain rapid growth. (data source: yaozhi.com, as of 2024.6.30)

finally, the current valuation of the innovative drug sector is relatively low. if you choose a company with a high-quality pipeline, your safety margin will be relatively high and your flexibility will be relatively large.