Original title: Big action!
5 trillion overseas giants to increase their holdings of the Internet, what signal?
Asian investment tycoons speak out: have confidence in the Chinese stock market
Author: Wang Jun
Recently, Fidelity International, UBS Asset Management, Schroders and other overseas asset management giants released the latest position data.
Fidelity International is optimistic about its heavily held Internet stocks. In February, JD.com, Meituan, etc. gained its holdings; UBS Asset Management doubled its holdings in Tencent at the beginning of this year, and reduced some holdings in March, and some core A-share holdings Assets were also reduced.
Many overseas giants are optimistic about the current Chinese stock market. Shi Bin, head of China equities at UBS Asset Management, recently expressed his opinion that the attractive long-term trend of the Chinese market still exists, and he has confidence in the Chinese stock market. patience.
5 trillion overseas giants increase their positions in the Internet
Wells Fargo International's China Equity Fund, China Consumer Power Fund, recently disclosed its position data as of the end of February, and Internet giants such as Meituan and JD.com have significantly increased their positions.
According to data released by Morningstar, during February, China Consumer Power Fund increased its holdings of Meituan by 24.46%, with a market value of US$174 million at the end of the period, making it the eighth-largest stock; It reached US$158 million, making it the tenth-largest stock; NetEase also gained 11.55% of its shares, with a market value of US$162 million at the end of the period, making it the ninth-largest stock.
In addition, Tencent Holdings, the largest holding stock of China's Consumer Power Fund, also gained 4.33% of its shares, with a market value of US$449 million at the end of the period.
Kweichow Moutai and AIA have also slightly increased their holdings by the fund.
According to Fidelity International's official website, Fidelity International was established in 1969. It is an independent company jointly owned by the founder's family, management and senior employees. It is one of the most trusted global leaders in the investment management industry. one.
As of December 31, 2021, the assets managed by Fidelity International for more than 2.7 million customers worldwide reached US$812.8 billion (equivalent to RMB 5.17 trillion).
Fidelity International is one of the largest active asset management institutions in the world. It has more than 20 years of investment experience in China and is one of the earliest foreign institutions to enter the Chinese market.
Fidelity International's investments mainly cover industries such as the Internet, healthcare and consumer industries.
UBS Asset Management reduces its heavy holdings in batches
UBS Asset Management is also one of the earliest foreign investors to enter China. It has a history of more than 20 years in China, and its investment industries are mainly consumer, Internet, and finance.
At the beginning of this year, UBS (Luxembourg) China Selected Equity Fund, a fund under UBS Asset Management, doubled its holdings of Tencent, expressing its optimism on Internet stocks with practical actions.
However, after entering March, the fund has reduced some Tencent holdings.
According to Morningstar data, Kweichow Moutai was promoted to the largest holding stock of UBS (Luxembourg) China Select Stock Fund, but it reduced its holdings by 7.98% in March, and the market value of the holdings at the end of the period was US$579 million; the second largest holding stock Tencent Holdings also 4.78% of the shares were reduced, and the market value of the positions at the end of the period was US$571 million.
In addition, NetEase, Alibaba, CSPC, Ping An H shares of China, AIA, etc. were also reduced, of which AIA was reduced by 13.1% of its holdings, the largest reduction.
Another relatively large-scale Chinese stock fund under UBS Asset Management, UBS (Luxembourg) Omni-directional China Stock Fund, also reduced its heavy holdings during March. Kweichow Moutai, Tencent Holdings, Alibaba, CSPC , Ping An H shares, etc. are all on the list of reductions. Among them, Ping An H shares of China have been reduced by 21.94% of their holdings, and the reduction is relatively large.
According to Morningstar data, the fund's largest holding stock, Kweichow Moutai, was reduced by 6.06%, with a market value of $231 million at the end of the period, and Tencent Holdings, the second largest holding, was reduced by 2.35%, with a market value of $227 million at the end of the period.
However, during March, the fund increased its positions in some financial stocks. China Merchants Bank's H shares gained 6.86% of the fund's shares, and the Hong Kong Stock Exchange gained 3.22% of its shares.
According to the official website of UBS Asset Management, as of the end of 2021, UBS's asset management scale reached 1.2 trillion Swiss francs, equivalent to about 8.17 trillion yuan.
Schroders cut some heavy holdings
As a veteran asset management giant, Schroders Investment Group is also one of the first foreign asset management companies to enter mainland China.
However, the latest data shows that the asset management giant's Chinese stock fund has also reduced its holdings of some heavyweight stocks.
According to recent data released by Morningstar, Schroders China Progressive Equity Fund, a subsidiary of Schroders Investment Group, reduced its holdings in Ping An, Kweichow Moutai, China Merchants Bank and other heavyweight stocks in March. The rate was 9.29%, and the reduction rate of China Merchants Bank was 12.37%.
In addition, Oppai Home Furnishings, Midea Group, Qia Qia Foods, Hengrui Medicine, and National Ceramic Materials have also been reduced, while Yirui Technology and Sunlord Electronics have slightly increased their positions.
The fund's management scale is relatively small, but it can be seen from its position dynamics that Schroders and other foreign giants hold positions.
According to the Schroders official website, as of December 31, 2021, the total asset management scale of Schroders for clients worldwide reached US$990.9 billion, equivalent to approximately US$6.31 trillion in RMB.
According to Schroeder's latest view, the supply chain disruption caused by the new crown pneumonia epidemic has caused the global economy to fall into "stagflation", and the situation in Russia and Ukraine has exacerbated this trend.
In addition to raising inflation expectations, Schroeder also lowered his forecast for global economic growth in 2022.
Schroeder expects that economic growth may slow further now, and inflation may remain high for a long time.
In addition, other risks to the global economy cannot be ignored, Schroeder said. Supply bottlenecks are hindering consumer spending, and in many regions, big-ticket items such as cars are in short supply and residents' travel is still restricted.
This could add instability to the economic environment, and economic activity could taper off until the supply side can respond accordingly.
Overseas giants optimistic about Chinese stock market
Affected by multiple factors such as the conflict between Russia and Ukraine, rising commodity prices, the risk of delisting Chinese companies in the United States, and the start of the Federal Reserve to raise interest rates, A shares and Hong Kong stocks have fluctuated greatly recently.
Track stocks such as A-share new energy and consumer stocks such as liquor continued to fall, affecting market sentiment. The Hong Kong stock Hang Seng Technology Index once fought back in mid-March, but has recently fallen into a downturn.
In this regard, Shi Bin, head of China equities at UBS Asset Management, expressed his opinion that the attractive long-term trend of the Chinese market still exists, and he has confidence in the Chinese stock market, but more patience is needed at present.
Shi Bin said that one of the reasons to be optimistic about the Chinese stock market is because the government has strengthened policy measures to stabilize growth.
The GDP growth target for 2022 is 5.5%, which is higher than market expectations.
At present, the valuation of China's stock market has reached an attractive level, and we will continue to focus on fundamentals, the long-term element of investment.
Shi Bin believes that investing in high-quality Chinese companies will bring long-term strong returns to patient investors.
Many high-quality Chinese companies have a long history of growth and have proven resilient to changing market conditions.
In addition, the secular trends that make the Chinese market attractive remain, such as a commitment to putting the economy on a service-oriented organic growth trajectory, increasing healthcare spending, automation and digitization, and the transition to green energy and a clean environment.
At the same time, the relatively low investment allocation of international investors to the Chinese stock market will bring many opportunities for active investors.
Shi Bin said that it is particularly important to identify those high-quality companies that can maintain growth for many years, and when the market fluctuates, it also provides an excellent opportunity for investors to buy such high-quality companies.
Understanding China's overall goals and its potential impact on different industries and companies has also become an increasingly important stock-picking factor.
Andrew McCaffery, global chief investment officer of Fidelity International, believes that one of the severe challenges facing the Chinese market recently is the resurgence of the new crown epidemic and the uncertainty caused by a series of control measures in China.
Investors need to consider the full impact of these factors.
At the same time, the challenge experienced by Chinese concept stocks, that is, whether these listed companies will eventually choose to delist from the United States and go public in Hong Kong, although this is actually a question of liquidity conversion, because it happens to be very volatile at the moment Under the current market conditions, the convergence of these events has triggered a ferment of fears in the market and caused losses for some investors.
"Despite the changing external environment, China still pays more attention to the country's goal of continuing to implement reforms, achieving common prosperity and sustaining stable growth. Even if tail risks occur from time to time, China is still committed to ensuring that its own country The stable operation of the capital market and provide a good environment for its economic development." Andrew McCaffery said.