"New products" and "high allocation of A shares" What do foreign asset management institutions value?

(Economic Observer) "New products" and "high allocation of A shares" What do foreign capital management institutions value?

　　China News Agency, Shanghai, March 13th, title:

　　Author Gao Zhimiao Fan Zhonghua

　　Participating in roadshows, live video broadcasts, and interviews... Since March, the schedule of Shen Yufei, the proposed fund manager of BlackRock's industry-selected hybrid fund, has become more compact.

　　As China's first wholly foreign-owned public fund management company, BlackRock Funds has launched its sixth fund product since its establishment more than two years ago. Shen Yufei intends to be the fund manager of this product.

"With the adjustment of epidemic prevention and control policies and the relaxation of real estate regulation, after the market gradually digests domestic and foreign uncertainties in 2023, the overall market sentiment will heat up, which is a better layout period for A shares." He told the China News Agency reporter.

Procyclical layout products "get together and launch new products"

　　In fact, it is not just BlackRock funds. Since the beginning of this year, the pace of foreign capital management institutions' deployment in China has accelerated, and many foreign capital management institutions have "gathered together to launch new projects."

　　On February 27, Neuberger Fund issued its first public offering fund product; on March 3, Fidelity Fund released the relevant documents of its first public offering fund. Lianbo Fund Management Co., Ltd., which is controlled by 40%, was approved by the China Securities Regulatory Commission to settle in Shanghai, becoming the fourth wholly foreign-owned public offering fund company approved by the China Securities Regulatory Commission since the beginning of the year.

　　Under the economic recovery, the pro-cyclical layout of foreign-funded asset management institutions has become a new idea for product launch.

Lu Wenjie, chief investment officer of BlackRock Fund, told reporters, "The boost of multiple favorable domestic policies marks that China has entered a new stage of development. As China's economy enters a new period of industrial upgrading and structural adjustment, it is necessary to capture and promote economic growth in the process. The new impetus is particularly worthy of attention.”

　　The post-epidemic rebound of China's consumer market has also enhanced the confidence of foreign capital management institutions to accelerate their deployment.

Lu Wenjie said that since the beginning of the year, economic data such as PMI (Purchasing Managers Index), credit, and real estate sales have gradually warmed up, which has brought certain support and verification to the recovery of economic fundamentals.

"With the recovery of the consumption scene and the continuous pursuit of quality of life, the upgrading of residents' consumption is a long-term deterministic investment theme, which contains a wide range of opportunities in all areas of life such as food, clothing, housing and transportation."

　　Neuberger Fund also pointed out that unlike the long-term inflation expectations in overseas markets that lead to a decline in external demand, China's domestic demand market has an upward basis. Under the combined effects of excess savings, disposable income growth expectations, and reduced epidemic constraints, residents' consumption is expected to Become the main driving force of this year's GDP (gross domestic product).

"Overweight" and "high allocation" have become key words for A-share investment

　　Behind the "gathering together to create innovations" is the guidance of foreign financial institutions' active investment strategies.

Goldman Sachs China stated in February that it has placed a high allocation of A shares and Hong Kong stocks; at the same time, BlackRock released the latest global asset allocation report, pointing out that it raised the rating of Chinese stocks from neutral to moderately overweight.

　　"The core reason why we hold an overweight view on A shares is that China is more attractive than developed economies. First, China's GDP growth forecast of about 5% has a significant advantage over developed markets with slower growth; second, after the epidemic The restart of economic activities has not led to a sharp rise in inflation in China, which is in stark contrast to developed markets with high inflation and heavy energy burdens," Lu Wenjie said.

　　In fact, compared with China's expected GDP growth target of around 5% in 2023, the judgments of major foreign asset management institutions are more optimistic.

Aberdeen, a British asset management agency, said that it recently raised its forecast for China's real GDP growth rate from 2.2% last year to 5.5%, and believed that "China has no inflationary pressure, so it has a greater ease of monetary policy than other parts of the world." Space".

　　Song Yu, Chief China Economist at BlackRock think tank, believes that in 2023, with the optimization of epidemic prevention and control and continuous policy support, China's economy is expected to achieve a GDP growth rate of 6%.

With developed countries likely to enter recession and China's external demand facing downward pressure, domestic demand will become the main force driving China's economy.

　　"This year, the opportunities in the A-share market will be rich and extensive. As China's economy enters a new period of industrial upgrading and structural adjustment, the profit margins of the midstream manufacturing industry will be further opened, and the rise of the manufacturing industry will also radiate the recovery of traditional industries and advanced manufacturing development and many other opportunities.” Lu Wenjie said.

(over)