Many stocks of "Zhongzitou" rose and fell, and the main funds were still popular, and the single-week yield of central enterprise ETF exceeded 9%
Source of this article: Times Weekly Author: Jin Zixin
On January 29, the "Zhongzitou" stocks continued to rise again, and a number of central and state-owned enterprise concept indices rushed to the list of gainers, but compared with last week's concentrated rally, the structure was slightly differentiated.
In the Wind popular concept index, the dividend style occupies the day's gainers, and the dividend assets such as large infrastructure central enterprises, central enterprises, Zhongzitou central enterprises, bank selection, insurance selection, and China Special Valuation buck the trend "dominate the list", among which it is worth noting that the concept of Huijin shareholding is also red, up 0.14% as of the close, ranking ninth on the list of popular concept index gainers.
Not only that, but dividend-related ETFs also extended last week's rally. According to Wind, after the closing net value settlement from January 22 to January 26, the top 15 stock ETF yields are all related ETFs such as central enterprises, state-owned enterprises, infrastructure, real estate, etc., and the ETF with the highest increase after the net value settlement as of January 26 is the central enterprise win-win ETF (517090), with a single-week interval return of 9.66%.
Image source: Picture Worm Creative
The "Chinese prefix" continued to rise
On January 29, a number of "Zhongzitou" stocks hit the daily limit in early trading, although they fell back in the afternoon, but they were still bright spots in the weak market on the day.
On the same day, COSCO (301516. SZ), China Post Technology (688648. SH) hit the 20cm limit, but the limit was opened after midday, and as of the close, the two stocks rose 11.83% and 2.07% respectively. Although the rise of "Zhongzitou" stocks continued, it showed structural differentiation, and China Communications Construction (601800. SH), China Power Port (001287. SZ) and other stocks fell back in the afternoon, but finally closed up, while PetroChina (601857.SH), CNOOC (600938. SH) rose first and then closed down, and COFCO Capital (002423.SZ) fell more than 6% as of the close.
In addition, on January 29, market news said that three state-owned AMC companies - China Cinda (01359. HK), China Orient and China Great Wall may be transferred to CIC in the near future. Shortly before that, China Huarong (02799.HK), one of the original four AMCs, was included in CITIC Group and recently changed its name to "China CITIC Financial Asset Management Co., Ltd."
Affected by this news, on the morning of January 29, China Cinda and China Orient's subsidiaries generally opened high, among which Cinda Real Estate (600657. SH), Dongxing Securities (601198. SH) both opened higher, but closed down as of the close, and Cinda Securities (601059.SH) closed down.
Some industry insiders said that the market of central state-owned enterprises may be due to the new requirements introduced by recent supervision.
On January 26, the China Securities Regulatory Commission held the 2024 system work conference, which made it clear that it will accelerate the construction of a valuation system with Chinese characteristics, support listed companies to become better and stronger through market-oriented mergers and acquisitions, promote the inclusion of market value in the assessment and evaluation system of central enterprises and state-owned enterprises, and study increasing the constraints on low-valued listed companies from the perspective of information disclosure.
On January 28, the China Securities Regulatory Commission (CSRC) once again issued a statement to strengthen the supervision of the lending of restricted shares in order to implement the investor-oriented regulatory concept. After full demonstration and evaluation, the China Securities Regulatory Commission (CSRC) has further optimized the securities lending mechanism, including the complete suspension of the lending of restricted shares, which will be implemented from January 29, the adjustment of the market-based declaration of refinancing securities from real-time availability to the next day, and the restriction on the efficiency of securities lending and lending, which will be implemented from March 18.
According to CICC's research, the assessment system of central enterprises used to be dominated by fundamental indicators, and the inclusion of market value management in the assessment system of central enterprises was a key part of the construction of a valuation system with Chinese characteristics.
According to CICC, it is currently focusing on three related investment ideas: first, relatively low capital expenditure, relatively high-quality free cash flow, which can support stable and high dividends and the potential to directly increase dividend levels, second, central enterprises with historically low valuation or market capitalization, and sufficient cash flow or cash assets to support share repurchases, and third, central enterprises with expected opportunities for mergers and acquisitions.
The bonus style will continue
Over the past year, the dividend style has continued to prevail, and many dividend ETFs have the highest yields.
According to the Times Weekly reporter, according to Wind, after the closing net value settlement from January 22 to January 26, the top ETFs are state-owned enterprises, real estate, infrastructure, energy and other related products, and the top 15 yields are dividend style ETFs, of which the highest single-week yield is the central enterprise win-win ETF, with an interval return of 9.66%, and the state-owned enterprise win-win ETF (159719) and China state-owned enterprise ETF (517180) ranked second and third, with 9.62% respectively and a positive return of 9.60%.
Screenshot source: Wind
Deng Ming, director of quantitative investment of China Commercial Fund and manager of China Commercial Dividend Preferred Flexible Allocation Mixed Fund, believes that the high dividend strategy may be the main line of investment in the Year of the Dragon.
Deng Mo told the Times reporter that "the high-dividend strategy should not be simply regarded as a defensive strategy, the current international environment and geopolitics are complex, and security is one of the core issues." In the medium to long term, whether it is the Chinese market or the US market, the dividend style is expected to continue to bring excess returns steadily. As of the end of 2023, the annualized return of the CSI Dividend Total Return Index has reached 13.01% in the past ten years, which is almost twice the annualized return of the CSI 300 Total Return Index of 6.53%. ”
It also mentioned that in the macro context of slowing economic growth, the logic supporting the valuation system of A-shares has changed, investors pay more attention to the stable operating cash flow and shareholder returns of listed companies, and the current dividend income of about 6% of the high-dividend sector is still more attractive than the 2.5% ten-year treasury bond yield, and the high-dividend sector is more cost-effective in the current economic environment, which may become the main line of investment in 2024.
On January 29, the market was still weak, with the Shanghai Composite Index falling 0.92% to close at 2,883.36 points, the Shenzhen Component Index falling 2.06% to close at 8,581.76 points, and the ChiNext Index falling 3.49% to close at 1,623.81 points.
According to Wind data, among the 18 stocks with a net inflow of more than 100 million yuan on the same day, there were many dividend style targets, and the top five stocks with net inflows were Gree Electric (000651.SZ), PetroChina, China Communications Construction, and China Telecom (601728. SH) and COSCO had net inflows of 414 million yuan, 299 million yuan, 296 million yuan, 180 million yuan and 173 million yuan respectively.