Guo Feng: China is moving from a manufacturing power to a manufacturing power

On the morning of September 28, the "2021 Golden Bull Asset Management Forum and Guosen Securities Cup • The 12th China Private Equity Golden Bull Award Ceremony" sponsored by China Securities News with the theme of "Asset Management Era, Striding Forward and New Journey" was held in Shanghai. Guo Feng, chairman of Shifeng Asset Management, said at the roundtable forum that from the perspective of China's progress from a manufacturing power to a manufacturing power, the continuous growth of consumption and other factors, Shifeng Asset management is relatively optimistic about the medium- and long-term performance of the A-share market.

Guo Feng said that in the about 20 years since China's accession to the WTO, it has accumulated very strong manufacturing capabilities and has maintained the first position in the global manufacturing industry for many years. At present, China is moving from a manufacturing power to a manufacturing power, and potential investment opportunities are expected to continue to emerge in the future. In addition, from the perspective of domestic demand, large consumption is also a sustainable, relatively stable track with a good competitive pattern and barriers. Therefore, Shifeng Asset Management is optimistic about the medium- and long-term performance of the A-share market, and the market is expected to spiral in the long-term dimension.

In addition, Guo Feng also said that the investment logic of the essence of the capital market is still investment under the prosperity of the industry. Historically, most of the time, the industries with high prosperity in that year have performed well in the A-share market. For Shifeng Assets, it is to find investment targets that can achieve high growth and performance in a relatively high-prosperity industry.

In terms of specific optimistic investment opportunities, Guo Feng specifically mentioned that China has the opportunity to break through the subdivision of foreign technology restrictions, such as comparing the first generation and second generation semiconductors, in the third generation semiconductor industry such as silicon carbide, China may overtake in the future. But this process will not be smooth, many companies seeking technological breakthroughs will eventually survive the survival of the fittest, and there are not many companies that can really grow, so it is necessary to closely track the changes in the industry.