The attractiveness of A-share core assets remains undiminished, and diversified incremental funds "run" into the market
2023-12-11
On the early morning of December 8th, Morgan Stanley China A-share Index Fund (CAF) announced that it will self purchase up to 20% of the fund's outstanding shares in cash, equivalent to approximately $51 million based on the latest closing price. This self purchase will start on January 22, 2024 and end before February 20, 2024 (unless extended). On the same day, China Securities Index Co., Ltd. announced that the China Securities A50 Index will be officially released on January 2, 2024, to facilitate the allocation of A-share core assets by domestic and foreign funds. Meanwhile, since the fourth quarter, the "national team" has made multiple moves to increase their holdings in A-shares, fund companies have released self purchase arrangements, and listed companies have accelerated the repurchase process. It can be seen that incremental funds are running into the market. Behind this is the consensus among all parties that A-shares will enter a golden window of allocation and long-term optimism about market core assets. The attractiveness of A-shares to domestic and foreign investors is constantly increasing. Wang Peng, an associate researcher at the Beijing Academy of Social Sciences, stated in an interview with Securities Daily that as more medium - and long-term incremental funds continue to enter the A-share market, it may be beneficial to break the negative cycle of previous low stock prices and limited incremental funds. At the same time, with high-quality individual stocks and industries receiving more attention and fund allocation, structural opportunities in the A-share market may continue. Incremental funds are accelerating their entry into the core assets of the A-share market, continuously releasing their attractiveness. Since December, the momentum of incremental funds accelerating their entry into the A-share market has not diminished as they seize the opportunity period for A-share allocation. From the perspective of financial attributes, China Guoxin Holdings Co., Ltd., a member of the national team, announced that its subsidiary Guoxin Investment Co., Ltd. will increase its holdings in the CSI Guoxin Central Enterprise Technology Index Fund; Subsequently, the fund institution ICBC Credit Suisse Fund stated that it would subscribe to the ICBC Credit Suisse Foresight Win Win Hybrid Fund with a fixed capital of 10 million yuan; Furthermore, foreign-funded institution Morgan Stanley announced that the types of funds entering the market, such as self purchasing A-share index funds, are becoming increasingly diversified. At the same time, incremental funds from listed companies have entered the market one after another. Taking Shenzhen Stock Exchange as an example, according to incomplete statistics by reporters, as of now, at least 33 listed companies in Shenzhen have disclosed or updated their repurchase arrangements. On the evening of December 5th, 29 companies disclosed their repurchase progress, with a cumulative amount of 2.124 billion yuan; On December 6th, four more companies launched repurchase plans, with a cumulative repurchase amount of 455 million yuan to 660 million yuan. Regarding the recent increase in incremental funds in the A-share market, experts interviewed by Securities Daily have all stated that the A-share market may have reached its valuation bottom. With the continuous release of favorable policies in active capital markets and the approaching end of the Federal Reserve's interest rate hike cycle, the A-share market may experience a rebound. In addition, Australian senior certified public accountant Xie Zongbo added to Securities Daily that the entry of incremental funds is not only a market-oriented operation by various parties in the market to underestimate the current value of A-shares, but also a major consideration for long-term optimism about core assets in the A-share market and confidence in China's economic development. Take Morgan Stanley China A-share Index Fund's heavy position stocks as an example. According to the latest statistics of the fund, the top five heavy positions are Kweichow Moutai, Changjiang Power, Gree Electric Appliance, China Merchants Bank and Mindray Medical, all of which are in various fields
Edit：Hou Wenzhe Responsible editor：WeiZe
Source：Securities Daily
Special statement: if the pictures and texts reproduced or quoted on this site infringe your legitimate rights and interests, please contact this site, and this site will correct and delete them in time. For copyright issues and website cooperation, please contact through outlook new era email：lwxsd@liaowanghn.com
Economy
Recommended Reading Change it 
Home
