Multiple Hong Kong stock funds with heavy holdings have achieved a floating profit of over 20% this year, highlighting the value of technology stock allocation
2024-10-11
In recent times, investors' enthusiasm for long positions in Chinese assets has further increased, and the attention of the Hong Kong stock market has significantly increased. As of the close on October 10th, all three major Hong Kong stock indices have turned red. Since the beginning of the year, the overall performance of Hong Kong stocks has been relatively strong, driving the performance of funds investing in Hong Kong stocks to be good. According to industry insiders interviewed, the Hong Kong stock market is expected to improve with the combination of multiple positive factors. The allocation value of technology stocks and non bank financial sectors listed in Hong Kong is highlighted. As of October 10th, the Hang Seng Index, Hang Seng Technology Index, and Hang Seng China Enterprises Index have risen by 24.66%, 25.82%, and 32.11% respectively this year, making the floating profits of funds heavily invested in Hong Kong stocks considerable. According to Wind Information data, as of October 10th, many fund products tracking the Hang Seng China Enterprise Index have performed well, such as the Southern Hang Seng China Enterprise ETF, E Fund Hang Seng H-share ETF, and Huaxia Hang Seng China Enterprise ETF, all of which have a floating profit of over 30% for the year; The Southern Hang Seng ETF and E Fund Hang Seng ETF, which track the Hang Seng Index, both have annual floating profits of over 20%. At the same time, technology stocks listed in Hong Kong have attracted market attention, and many fund products that track Hang Seng Technology Index and Hang Seng Internet Technology Industry Index have performed well. Specifically, Morgan Hang Seng Technology ETF, Tianhong Hang Seng Technology Index A, Hua'an Hang Seng Technology ETF, Huaxia Hang Seng Internet Technology Industry ETF, Hua'an Hang Seng Internet Technology Industry ETF and other products have a floating profit of more than 20% within the year. Hua An Fund said: "First, the performance of Internet enterprises is growing strongly, and the net profit of the Hang Seng Internet technology industry index attributable to the parent company has increased by 124% year on year; second, as of October 8, the PE (price earnings ratio) valuation of the Hang Seng Internet technology industry index is near the 31% quantile of the past five years, and the valuation performance price ratio is prominent, which is expected to welcome Davis double click under the support of fundamentals. At the same time, Internet companies also welcome good policy; finally, some companies have carried out large-scale repurchase activities this year, which is expected to improve shareholder returns." Some active equity funds with heavy positions in Hong Kong stocks also achieved good performance. For example, Huatai Bairui Hong Kong Stock Connect Quantitative A, Jiashi Hong Kong Stock Advantage A, Tianhong Hong Hong Kong Stock Connect Selected A, Guangfa Shanghai Hong Kong Shenzhen New Opportunities and other products have performed well, with floating profits exceeding 20% throughout the year. The expectation of the Hong Kong stock market is favorable to Hua An Fund. In September of this year, the Federal Reserve announced a 50 basis point interest rate cut, officially beginning the cycle of interest rate cuts. This move has enhanced the attractiveness of the Hong Kong stock market to global capital, and foreign investment has begun to flow back to the Hong Kong stock market. At the same time, the mainland has also introduced a series of policy measures to support economic growth, conveying signals of stable growth and improving market expectations. In an interview with Securities Daily, Hu Chao, fund manager of Tianhong Fund, said, "Considering that the Federal Reserve has initiated its first interest rate cut cycle in four years, the 'policy aspect' and 'liquidity' of the three elements of Hong Kong stocks have been greatly improved, and the 'fundamentals' have also been supported by fiscal and monetary policies. The three are expected to resonate." In terms of investment opportunities in Hong Kong stocks, many public institutions are optimistic about the value of technology stock allocation. "On the whole, with the support of domestic and foreign policies and the active exploration of Internet enterprises in the cutting-edge technology fields such as artificial intelligence, the Hang Seng Internet Technology Industry Index has seen positive results from the fundamental, financial and emotional aspects, and the allocation value has become prominent," said Hua An Fund. Hu Chao believes that at this time when confidence is more precious than gold, high resilience assets such as Hang Seng Technology deserve to be viewed more optimistically, tolerate short-term fluctuations appropriately, and patiently plan for the market's mid to long term turning points. The short-term rapid rise inevitably increases market volatility, which has been demonstrated many times. We believe that we still need to grasp the main contradiction: the Federal Reserve's interest rate cut cycle has brought about a global financial environment that has become loose, and the mainland has released intensive economic policies. At the same time, through continuous cost reduction and efficiency improvement, focusing on core businesses, enhancing corporate governance and shareholder returns, the basic orientation of Hong Kong technology stocks is good Hu Chao stated. Luo Guoqing, fund manager of Guangfa CSI Hong Kong Stock Connect Non bank Financial Theme ETF, said, "Since the beginning of this year, the performance of the non bank sector in Hong Kong stocks has continued to improve. As of October 8th, the non bank financial theme index of CSI Hong Kong Stock Connect has risen by 34.6% this year, and it has been particularly strong recently, with investment opportunities continuing to receive market attention." Furthermore, the good performance of the non bank financial sector in Hong Kong stocks has benefited from various factors such as liquidity, economic fundamentals, asset structure, and valuation. For example, from the perspective of asset structure, 70% of the industry weights in the CSI Hong Kong Stock Connect Non Banking Financial Theme Index are concentrated in the insurance industry. The insurance industry is more sensitive to economic expectations and has greater growth potential in the context of improved global liquidity and domestic economic expectations. (New Society)
Edit：Yao Jue Responsible editor：Xie Tunan
Source：Securities Daily
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