In 2023, the A-share market will open high and move low, and it will fluctuate throughout the year. In the first half of the year, AI investment was in full swing, and in the second half of the year, Huawei, diet pills, and humanoid robots took turns to perform, and structural opportunities and risks coexisted in the market.
Sohu Finance's "Fund Q&A" column has launched a special series of reports on "Jiyu 2024", reviewing the market in the A-share market segments during the year, looking forward to and predicting the investment opportunities in various popular tracks in 2024, grasping the main logic of asset allocation in the future, and looking for fund products with investment potential.
The fund manager who is a guest in this issue of "Jiyu 2024" is Gu Xinfeng, the champion fund manager of the public fund in 2023, and this issue focuses on the investment opportunities in the future market of the Beijing Stock Exchange.
Gu Xinfeng, Master of Peking University, joined China Asset Management in July 2012 and has served as a researcher of the Investment Research Department of China Asset Management, an investment manager of China Asset Management, the administrative head of the New Third Board Business Department, an assistant fund manager and fund manager of the Equity Investment Department of China Asset Management, and is currently the director of the Equity Investment Department of China Asset Management. In 2023, Gu Xinfeng's China Beijing Stock Exchange Select Two-Year Fixed Opening Hybrid will rank first among active equity public funds in the whole market with a yield of 58.56%.
In 2023, the Shanghai Composite Index, the Shenzhen Component Index, and the ChiNext Index will all fall to varying degrees, while the Beijing Stock Exchange 50 Index will stand out, rising 14.92% for the year. In the case of the general poor returns of active equity funds, the returns of many thematic funds on the Beijing Stock Exchange ranked among the top 10, and the Beijing Stock Exchange Innovative Small and Medium-sized Enterprises Select Fund under China Asset Management won the first place in one fell swoop.
When it comes to last year's investment ideas, Gu Xinfeng said that he mainly seized the opportunity of the server liquid cooling company and related computing power companies of the Beijing Stock Exchange; at the same time, when the humanoid robot was more popular in the first half of the year, it was relatively early to intervene in the core high-quality companies in the humanoid robot supply chain of the Beijing Stock Exchange; and also participated in some strategic placements of the Beijing Stock Exchange, and also achieved good profits.
He also said that in the short term, some stocks on the Beijing Stock Exchange have risen a little too fast, and the K-line chart is slightly steep, so it is not recommended to blindly chase higher at this time, but to take a long-term view, pick a company that you think is good, and intervene with a long-term holding mentality.
In the long run, the Beijing Stock Exchange market is worth investing in for a long time, on the one hand, the overall valuation level and the science and technology innovation board are still discounted, on the other hand, the investment opportunities of the Beijing Stock Exchange are more in the source of living water.
The following is the full text of the interview:
Fund Q: What are the opportunities you have seized in 2023 for the two-year fixed opening of the China AMC Beijing Stock Exchange?
Gu Xinfeng: In the first half of last year, we seized the opportunity of the server liquid cooling company and related computing power companies of the Beijing Stock Exchange, and cashed in the income in a relatively high position;
In addition, we have also participated in some strategic placements on the Beijing Stock Exchange, although the amount of participation is not large, and the proportion of us is not large, but due to the relatively low cost of intervention, we have also achieved good profits.
Therefore, I have summarized that for those good companies or companies that are in line with market aesthetics, market direction and trends, we have studied more deeply, covered earlier, and intervened earlier, so this year's performance is okay.
Q: After a continuous rise, is the valuation of the Beijing Stock Exchange still attractive?
Gu Xinfeng: The Beijing Stock Exchange was concerned before because the valuation was relatively cheap and the liquidity was relatively weak. However, after the previous successive rises, the valuation of the current Beijing Stock Exchange stocks has indeed been relatively repaired. Objectively speaking, during this period of time, the undervaluation of many stocks on the Beijing Stock Exchange is indeed not as high as it used to be. However, at the same time, we can see that the average valuation level of the Beijing Stock Exchange and the ratio of the Science and Technology Innovation Board are still at a considerable discount. Since the investor thresholds of the Beijing Stock Exchange and the Science and Technology Innovation Board are the same, we feel that there may still be a trend of convergence between the two in the future.
Q: Liquidity is one of the main problems that have plagued the Beijing Stock Exchange for a long time. How do you view the current liquidity of the Beijing Stock Exchange? Has there been a fundamental change, and is it possible that the liquidity of the Beijing Stock Exchange will move closer to the Science and Technology Innovation Board in the future?
Gu Xinfeng: The liquidity of the Beijing Stock Exchange has indeed undergone fundamental changes, which can be said to be earth-shaking changes. The original daily turnover may be about 2 billion yuan, but now the daily turnover has exceeded 15 billion yuan, or even higher.
From the perspective of turnover, the total turnover of the Beijing Stock Exchange is still smaller than that of the Science and Technology Innovation Board, but we must also see that the number of companies and the total market value of the Beijing Stock Exchange are smaller than the number of companies on the Science and Technology Innovation Board. However, I believe that this situation should only be a temporary phenomenon. I don't think that the liquidity of the Beijing Stock Exchange will always exceed that of the STAR Market, which is also unreasonable.
At the same time, Article 19 of this year's Shenzhen Reform stipulates that qualified investors on the Beijing Stock Exchange and the Science and Technology Innovation Board are mutually recognized, as long as they have the trading authority of the Science and Technology Innovation Board, they can apply for the trading authority of the Beijing Stock Exchange at the brokerage company to open the trading authority of the Beijing Stock Exchange immediately.
In the event that the investor thresholds for the two markets have reached interoperability, we believe that in the long run, the liquidity and valuation levels of the two markets should also be interconnected.
Fund Q: From the perspective of growth, compared with the Shanghai and Shenzhen markets, what are the advantages of the Beijing Stock Exchange?
Gu Xinfeng: Compared with the Shanghai and Shenzhen stock markets, the Beijing Stock Exchange has its own characteristics and characteristics, and has formed its own unique advantages in many subdivided industries.
The first is the new energy sector, the leading company of all global anode materials in the Beijing Stock Exchange, the world's largest production capacity, and the world's second largest photovoltaic welding strip company, these companies have performed very well in the past few years.
The second is an auto parts company. Now automobiles are experiencing a great era of intelligence, electrification and the rise of domestic cars. The auto parts companies on the Beijing Stock Exchange, in the context of such a big era, have become the core suppliers of these high-quality OEMs. For example, all the core suppliers of Tesla's plastic structural parts in Beijing Jiaotong include BYD's core suppliers of intelligent controllers, as well as upstream companies that do all kinds of spare parts, including seats and plastics.
In addition, the Beijing Stock Exchange also has a large number of leading companies in the subdivision of high-end new materials, including the leading companies of global aramid paper and copper extractants.
In the emerging consumer field, the Beijing Stock Exchange is the only leading collagen company that has obtained a Class III device certificate, and there is also a leading company in pet food OEM.
Generally speaking, there are many leading companies in the field of specialization, refinement, special and new or subdivisions in the Beijing Stock Exchange, and their profit volume may not be particularly large, and the average may be distributed in the range of 50 million yuan to 100 million net profits, but their performance growth rate is still relatively fast, and their own industry position is also relatively stable, ranking first and second in the subdivided industry.
Fund Jia asked: After the sharp rise, is the current position of the Beijing Stock Exchange still worth investing?
Gu Xinfeng: Of course, in the short term, I personally think that the rise of some stocks on the Beijing Stock Exchange is a bit too fast, the K-line chart is slightly steep, we do not recommend investors to blindly chase high at this time, or to take a long-term view, pick the company that they think is good, and intervene with a long-term holding mentality. At the same time, we also want to remind investors that the rise and fall of the Beijing Stock Exchange is 30%, and the Science and Technology Innovation Board is 20%, so theoretically speaking, the volatility of the Beijing Stock Exchange is also relatively large. Therefore, we do not recommend that you blindly increase your position when the market is in full swing.
But in the long run, the BSE market is worth investing in for the long term. On the one hand, the overall valuation level of the Beijing Stock Exchange and the Science and Technology Innovation Board are still discounted; on the other hand, the investment opportunities of the Beijing Stock Exchange lie more in the source of living water.
Since the liquidity of the Beijing Stock Exchange is now up, the valuation is not so significantly discounted, which leads to more and more high-quality companies applying for listing on the Beijing Stock Exchange, and there will be more and more high-quality supply on the Beijing Stock Exchange in the future.
We believe that the big investment opportunities of the Beijing Stock Exchange may lie in the current stock of high-quality companies on the one hand, of course, there are not many companies in stock, only more than 200; on the other hand, more investment opportunities lie in the high-quality incremental companies that will be listed on the Beijing Stock Exchange in the future, perhaps they were originally ready to be listed in Shanghai and Shenzhen, but due to the relatively long waiting time, and now it is found that the valuation and liquidity of the Beijing Stock Exchange have also risen, and there should be there, so they will be listed on the Beijing Stock Exchange, and there will be more and more good companies.
I believe that the future investment opportunities of the Beijing Stock Exchange will be wonderful.
Fund Jia Q: From the perspective of market style, after the previous surge in small-capitalization stocks, will the market interpretation of the Beijing Stock Exchange undergo major changes in the future, such as extending to medium-sized and large-capitalization companies?
Gu Xinfeng: During this period, the market of the Beijing Stock Exchange was very hot, but if you look carefully at the structure, it is true that companies with relatively small market capitalization have risen relatively large and more drasticly; at the same time, some companies with relatively large market capitalization on the Beijing Stock Exchange have not risen so fast and the trend is relatively stable.
In any market, it is possible to switch styles between large and small caps, if the large cap goes up a lot, it is possible to switch to a small cap, and vice versa, if a small cap goes up a lot, it is possible to switch to a large cap. Therefore, it is worth looking forward to whether these large-cap stocks on the Beijing Stock Exchange (but they are not so big, but they are relatively larger on the Beijing Stock Exchange) to take over from small-capitalization companies to usher in a round of catch-ups. But there is a lot of uncertainty about when it will be switched and whether it will be switched immediately.
It is true that there are some funds with floating attributes to come to this market, and they tend to think from the perspective of chip structure, preferring small-capitalization companies. But what I want to say is that with the continuous popularity of the Beijing Stock Exchange, more and more institutional investors have begun to pay attention to the Beijing Stock Exchange, study the Beijing Stock Exchange, and try to enter this market. When they are ready to go out after careful research, they must be high-quality companies with high-quality individual stocks, long-term growth financial performance, and good financial performance. Under normal circumstances, institutional investors will not blindly chase those small stocks that have been speculated, so it is very possible that the leading companies on the Beijing Stock Exchange favored by institutional investors may also usher in the repair of valuations in the future, and even exceed the rise of small stocks in stages, which is also very possible.
Produced by | Sohu Finance
Author | Wang Mengting
Operations Editor | Xue Suwen
Share likes