Chen Xu: Director of Quantitative Investment Department, Quantitative Investment Director and Fund Manager of BOC Fund. In the first half of this year, a total of 6 CSI 500 Index Enhanced Products earned more than 10% of the CSI 500 Index, and the Shanghai CSI 500 Index Enhanced A gained 22.85% in the first half of the year.
Where are the highlights of public funds in the first half of the year? Looking ahead to the second half of the year, which industry sectors are more valuable for investment? Recently, Chen Xu of the Bank of Shanghai Fund said in an interview with Red Star News that in the second half of the year, it is optimistic about industries with high prosperity and faster performance growth, such as new energy, semiconductors, chemicals, pharmaceuticals and other industries.
Red Star News: What do you think of the stock (or bond, commodity) market in the first half of the year?
Bank of Shanghai Fund Chen Xu: In the first half of the year, A-shares fluctuated widely, experiencing many style switches and rapid industry rotations. In January, continuing last year's group market, the valuation of super-cap leading stocks was relatively high; in mid-February, the market style changed sharply, and the low-valued stocks in the small and medium-cap and the cyclical sector with relatively low valuations rose rapidly, and the spillover effect of funds from core assets was significant. After the sharp retracement of core assets, in the second quarter, driven by the main lines of medicine and new energy, A shares appeared to have a structured rebound market that exceeded expectations, and will be continued in the mid-report market of the chip and lithium battery industries.
Looking back at the stock market in the first half of the year, there is still a certain money-making effect, but the volatility risk is significantly magnified, the performance of the strong large-cap leading growth stocks in the early stage is significantly differentiated, and the small and medium-cap style is relatively strong; at the same time, the more detailed structured market makes excellent funds can select individual stocks through strategies and make higher returns beyond the market. For example, in the CSI 500 Index Enhancement Track, the head fund can greatly exceed the returns of the benchmark index in the first half of this year by selecting high-quality stocks and industries, and provide investors with relatively cost-effective investment tools in a wide-range volatile market.
Red Star News reporter: What are the main characteristics of the funds with eye-catching performance in the first half of the year?
Chen Xu of Shanghai Bank of Funds: In addition to theme-based, heavy-positioned single-industry, passive funds, etc., in the actively managed products, most of the funds with excellent performance in the first half of the year have good top-down plate allocation capabilities, while focusing on mining and allocating high-quality stocks with prosperity, and continuously optimizing their positions in the market style switch. For example, the head fund of the CSI 500 Index Enhancement Type significantly exceeded the CSI 300 in the first half of the year. The main reason behind the eye-catching performance is that the enhancement strategy has the possibility of capturing more high-quality stocks and structured market opportunities in the frequent style changes in the market, and the continuous accumulation of Alpha (referring to the return of the fund beyond its benchmark beta) in the volatile market. For example, most of the performance benchmarks of equity funds will be selected as the CSI 300 Index, which will obtain a substantially superior market and stable and sustainable returns.
Red Star News: For the trend in the second half of the year (including but not limited to stocks, bonds, commodities, etc.), can you share your views? In your opinion, which sectors are relatively more valuable to invest in?
Bank of Shanghai Fund Chen Xu: In the second half of the year, the overall or closed up in shocks. Macro aspect: First, the expectation of tightening liquidity in the market is gradually being fulfilled; second, the economy continued to recover in the first half of the year, and the profit expectations of listed companies were underestimated to a certain extent. In the third quarter, the whole is in the stage of gradual cashing in the positive and negative, or there may be ups and downs, but combined with the annual fundamental performance, capital market entry, and stable liquidity, the market as a whole is still in a structural upward channel.
It is optimistic about industries with high prosperity and faster performance growth, such as new energy, semiconductors, chemicals, pharmaceuticals and other industries. The recovery process of the economy in inflation, the domestic demand of emerging industries and the external demand of external exports have a clear upward trend, these are industries with high performance certainty or sustained and stable performance.
In terms of new energy, energy transformation, carbon neutrality and other policies, superimposed on the consumer side continue to grow, supporting the growth rate of the medium and long-term track; semiconductors, the supply side of the expansion of production capacity still needs time to cash, chip demand is strong to continue the industry's high prosperity; pharmaceuticals, domestic demand growth and consumption upgrades to provide long-term dividends, domestic innovation import substitution, CRO (pharmaceutical contract research and development enterprises) / CDMO (pharmaceutical contract custom research and development enterprises) business supply and demand two booming short-term to help the development of the industry; chemicals, With the continued recovery of domestic and foreign demand, while with the increase in industry concentration and the continuous upgrading of the industry, competitive industry leaders are expected to maintain high corporate profitability.
The market representative index is optimistic about the CSI 500 index. The performance of the CSI 500 Index has high elasticity in growth, the valuation is reasonable, and it takes into account both growth and cycle. At present, the country is in the stage of economic recovery and inflation, and the word "stability" of monetary policy is the first to maintain reasonable liquidity. In the overall macro environment, the valuation and growth matching of individual stocks have more advantages, CSI 500 covers the leading companies in the subdivision track, the overall valuation is lower in the broad-based index, and the weight is high TMT (digital new media industry), pharmaceutical, basic chemical, new energy and other sectors have a high degree of prosperity and strong performance certainty, and are expected to obtain certain relative returns in the second half of the year.
Red Star News Reporter: As ordinary investors, should we chase the "star" funds with eye-catching performance in the first half of the year? What are the company's good recommendations for fund investment?
BOC Fund Chen Xu: There is a high degree of uncertainty about whether the current market characteristics and structural market conditions are sustainable. The short-term performance of the fund may be affected by the market style, industry rotation, and individual stock events, and it is recommended that investors choose fund products that are worth holding in the medium and long term and match the risk and return.
Compared with the past two years, this year may be a small year in the equity market, and the current macro environment is more conducive to individual stocks and industries with high valuation and profit matching and high prosperity, so the investment target with a high valuation margin of safety and strong certainty of performance growth is more in line with this year's market. In the medium to long term, a more balanced style allocation, or an index-enhanced product with a focus on sound and sustainable performance, can provide a better investment experience.
Red Star News reporter Lu Bo
Responsible editor Ren Zhijiang Editor Yang Cheng
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