Foreign private equity is optimistic about the long-term opportunities of China's A shares, the total number of managers has reached 40

　　Our reporter Wang Ning

　　Since the beginning of this year, although A-shares have fluctuated greatly, the layout of foreign private equity has not slowed down.

Recently, a reporter from "Securities Daily" inquired from the website of China Securities Investment Fund Industry Association (hereinafter referred to as "China Fund Association") and found that Beijing Daotai Lianghe Private Equity Fund Management Co., Ltd. (hereinafter referred to as "Daotai Lianghe") has successfully completed the This is also the first foreign private equity that has completed the filing this year.

　　In addition, according to the statistics of Private Equity Pai Pai.com, as of now, the number of foreign private equity fund managers has reached 40; the first foreign private equity fund management scale of 10 billion yuan has also appeared, and Bridgewater (China) Investment, established in 2016, currently has an official management scale. It exceeded 10 billion yuan, and there were 37 products under management.

　　A number of private equity people told the "Securities Daily" reporter that from the perspective of foreign private equity's layout of A-shares, it shows that they are optimistic about the long-term opportunities of China's A-shares and clearly want to increase the Chinese stock market.

It can be expected that the future trend of A shares will still be full of more investment opportunities.

　　40 foreign private equity

　　A total of 223 products are managed

　　Recently, the website of the China Association for Fundamentals showed that Daotai Lianghe has completed the registration and filing. As the first foreign private equity filing this year, it has attracted much market attention.

　　Daotai Lianghe’s office address is Haidian District, Beijing, with a registered capital of US$15 million and paid-in US$3.75 million. It is a wholly foreign-owned enterprise. Its business scope includes private securities investment funds and private securities investment FOF funds. The actual controller is Dynamic Technology Lab Private Limited, Legal Representative and Executive Director TAN HEAP HO.

The person in charge of compliance risk control and information reporting of the company is Yuan Jing, who has worked successively in Beijing Branch of Minsheng Bank, Private Equity Management Department of China Foundation Association, and Caida Capital.

　　According to the latest data from Private Equity Pai Pai.com, up to now, the number of foreign private equity managers that have completed registration and filing has reached 40, and private equity management with a management scale of more than 10 billion yuan has also ushered in an icebreaker. The scale of foreign private equity in the Chinese market has exceeded 10 billion yuan.

　　In terms of product management, 40 foreign private equity managers manage a total of 223 products. Bridgewater (China) Investment has the largest number of products under management, with 37 products under management, followed by Eastspring Investments; There are only 6 companies in between, namely Bisheng Investment, Value Partners Investment, UBS Investment, Runhui Investment, Yuansheng Investment and Lubrizol Investment. The remaining foreign managers manage less than 10 products.

　　It is worth mentioning that, according to the liquidation funds included in the data, 40 foreign private equity firms have liquidated a total of 51 products.

Among them, the number of liquidations of many foreign investors, including Future Yicai Investment, Yuansheng Investment, Anzhong Investment, BlackRock Investment, and Schroder Investment, is less than 5.

　　Lin Jiayi, CEO of Xuanjia Finance, told the "Securities Daily" reporter that the main strategy of foreign private equity A shares is still active stock long strategy. Although there are many sub-strategies, the main ones are value investment, growth, trend speculation and other strategies.

In addition, the CTA strategy covers active and quantitative. Although the scale is small, it is indispensable as a supplement to the diversified allocation. Different strategies lead to different product management scales and liquidation situations.

　　Most foreign private equity

　　Optimistic about the long-term opportunities of A shares

　　In the past two years, some of the all-weather strategies of foreign private equity have remained enthusiastic about the allocation of Chinese assets, especially when the A-shares fluctuated violently during the year, foreign private equity is still accelerating their deployment.

　　Including Luke Barrs, head of EMEA portfolio management at Goldman Sachs, and Mark Haefele, global chief investment director of UBS Wealth Management, all believe that the recovery of China's stock market will be the highlight of emerging markets in 2022; A great opportunity to build a position.

　　Value Partners' Yu Chenjun is even more optimistic about companies with stable cash flow and bargaining power in the A-share market.

　　The Shanghai stock investment team of Eastspring Investments told the "Securities Daily" reporter that in the short term, we judge that the market will repeatedly play the game between fundamentals and policies, but with the decline of the index, the relative release of risks, entering the "two sessions" window, and listing The company's performance bulletins have been released one after another. The market will enter the bottom-grinding range and gradually anchor in a new direction. The tools and density of policy efforts will be short-term catalysts for market sentiment.

　　Eastspring Investment said that it will focus on the short-term industry boom and strong anti-cyclicality, benefiting from the segmented tracks and targets with stable growth and flexible performance.

From a bottom-up perspective, with the gradual stabilization of upstream raw material prices, midstream profits are expected to bottom out in the future, and we are also optimistic about high-quality companies with sufficient downstream demand, strong pricing power, and profit margins that can recover first.

"We will continue to be optimistic about the Chinese market in the medium and long term. It is expected that with the continuous integration of the Chinese economy with the global economy, we will stand out from the epidemic with our supply chain advantages, and achieve global layout and high-end manufacturing that can be replaced by domestic production; the new economy that benefits from domestic consumption and structural adjustment. Industries and targets, including new energy, consumption, medical services, and technology, will also have better investment opportunities.”

　　Rong Hao, a wealth management partner of private equity Pai Pai.com, told the Securities Daily reporter that most foreign private equity companies are optimistic about the long-term opportunities of China's A-shares, and they all expressed their optimism and longing for the Chinese stock market in their 2022 outlook.

In particular, Rebecca Patterson, director of research at Bridgewater Investments, believes that the Chinese market has increased liquidity, and the current global investment in China is seriously insufficient, and the attractiveness of Chinese assets is prominent in various indicators.

(Securities Daily)