Taiping Fund Chen Xiao: High-grade credit bonds as the main allocation

● Xu Jinzhong, a reporter of this newspaper

A few days ago, Chen Xiao, director of the fixed income investment department of Taiping Fund and proposed fund manager of Taiping Ruiqing Hybrid, said in an interview with China Securities News that there will be phased and structural opportunities in bonds and stocks in 2022.

He said that in terms of bonds, with the expectations and rhythm of wide credit, there are stage opportunities in the bond market; in terms of credit, high-grade credit bonds will be used as the main allocation to grasp the deterministic returns. In terms of stocks, it is necessary to tap structural opportunities, take into account value and growth, and grasp the good companies in the industry.

Both equity and debt have structural opportunities

In terms of macroeconomics, Chen Xiao pointed out that in the long run, China's macroeconomic development potential is relatively large, and the fundamentals are good for a long time; in the short term, under the background of the global pandemic of the new crown pneumonia epidemic and the complex and severe external environment, the domestic economic recovery and development is facing some phased, structural and cyclical factors, and it is expected that with the support of fiscal and monetary policies, the economy is expected to maintain stable development.

For the bond market in 2022, Chen Xiao believes that in the context of a long-term decline in yields, the market style in 2022 will be dominated by shocks. "With the expectations and rhythm of wide credit, there will be phased opportunities, and we will also seize these opportunities to operate in the band and strive to increase product revenue." In terms of credit, we will take high-grade credit debt as the main allocation and grasp the deterministic returns. Chen Xiao said.

In terms of the stock market, Chen Xiao expects structural opportunities. "We will take into account both value and growth, and grasp the good companies in the industry in three aspects." First, the long-term improvement of the prosperity and the long-term development of the industry and the formation of resonance with capital, including the direction of hard science and technology such as new energy, science and technology industry chain and advanced manufacturing. The second is the consumer, medical and other industries with relatively stable performance. The third is the leading stocks in some subdivisions in the banking, chemical, automobile and other sectors. ”

It is hoped to maintain a steady growth in net worth

According to the data, the new "fixed income +" product , Taiping Ruiqing Hybrid, which is proposed to be appointed by Chen Xiao as the fund manager, has been launched. According to Chen Xiao, the Taiping Ruiqing Blend of this offering aims to pursue absolute returns and strives to achieve a steady annualized target return under the premise of strict risk control. Through strict position control, the safety cushion is accumulated first, and then the investment income is pursued. In terms of specific style, compared with the previous series of products, the Taiping Ruiqing mix of this offering is mainly for channel issuance, and the investment style is more balanced and stable. "The investment concept is more stable and value-oriented investment, from the perspective of value investment, through a reasonable price layout of high-quality assets, grow together with high-quality assets, and persistently use compound interest to make money, to achieve steady appreciation of fund products." Chen Xiao introduced.

For the rhythm of new fund opening, Chen Xiao said that it will be based on absolute returns, hoping to maintain a steady growth of net value, so the pace of opening positions is relatively stable, first accumulate safety cushions, and then pursue investment returns.

"During the initial operation period, bond allocation is the mainstay, through the short and medium duration credit debt plus leverage, to obtain absolute returns, accumulate safety cushions, combined with economic fundamental judgment and policy expectations, the use of some positions for interest rate debt swing operations, increase excess returns." After that, according to the specific market conditions, we will flexibly switch in the field of investable sub-assets such as interest rates, credit, convertible bonds, cash-like assets, and equity, and strive to obtain absolute returns beyond the market and indices. Chen Xiao said.

This article originated from China Securities News