Dingfeng Asset Li Linjun: You can focus on investment opportunities in five areas

The 2015 China Securities Taurus Sharing Conference, sponsored by China Securities News and co-organized by Guosen Securities, was held in Beijing on the 19th. Li Linjun, general manager of Shanghai Dingfeng Asset Management Co., Ltd., said at the sharing meeting that in the future investment allocation, in addition to the medical and health, energy conservation and environmental protection, service consumption, TMT, including modern agriculture and other fields that the market is unanimously optimistic about, there are other areas that are also worthy of attention. This mainly includes: mixed reform and factor market reform in the reform category; second, the change of financing structure; third, mergers and acquisitions; fourth, arbitrage; fifth, new shares and sub-new shares.

The following is a transcript of some of his remarks:

The second point I want to make is this. What do we deserve in the future? Do what? This is more important. However, if the average person stands at a slightly macro perspective, I find that even Martian people are investing in such a few aspects, regardless of equity, VC, PE. Medical health, energy conservation and environmental protection, service consumption, TMT, including modern agriculture. Everybody is voting in these directions. I said that I also cast these directions without characteristics. Let me tell you from another perspective, there is no doubt about why expectations are consistent in the general direction. In this, we have to subdivide the industry and sub-industry, which is very critical.

For example, in the medical and health industry, the business model of opening a hospital and selling drugs is not the same, but it is the medical industry. I think there are several directions for doing stocks in the future for your reference. First, I call it reform, which is nothing more than two major types of reform, one is mixed reform, we are in Beijing in mixed reform, Shanghai, Guangzhou are mixed reform, this is definitely a general direction. But how do you do mixed reform? For example, you are very familiar with beijing's state-owned assets, so you have several mixed reform companies in Beijing. How do you understand Shanghai? You know Shanghai, you don't necessarily know Guangzhou. So, in the allocation of the stock market, I think this is a direction that we can participate in, nothing more than general allocation of some good, certainty to reform the target.

The second direction of reform, which I think is called factor market reform. There are still great opportunities. For example, sports reform, now the middle school has begun to set up a football team, this market is still quite large. For example, why do we put football in when we study sports, football accounts for about 50%, so football is very important, so the matter of setting up a football team in middle school is still quite big. Of course, there are also education reforms and so on, so I think the first general direction is to reform this direction.

Second, I think it is called a change in the financing structure. In fact, unconsciously, our private equity has also become an industry, and everyone knows that the expansion rate of wealth management institutions is faster, and there are many more than 100 billion. In fact, I think that when these general directions, financing structures or investment structures change, there are actually the biggest opportunities in this. For example, the opportunity of the stock market, the opportunity of Internet finance, I think this is the second direction.

Third, I think M&A is a direction. Everyone knows that mergers and acquisitions are only a kind of appearance, mergers and acquisitions are called big eat small, strong eat weak, old trees sprout new shoots, but mergers and acquisitions are a surface, mergers and acquisitions behind is actually an industrial logic, called transformation, upgrading, innovation, service, Internet, mergers and acquisitions are actually just a kind of appearance.

In fact, last year, the entire M&A market probably had nearly 5,000 M&A cases, and the entire scale was about one trillion yuan. In fact, at this moment, there are an average of more than 200 companies suspended, and every day there are about 6,000 companies announcing that I am going to merge, I want to restructure assets, this I think is the cash of the expected difference, I think there are actually huge opportunities in this, and it will continue, I think this year will continue. So, I think that's also a direction.

The other category, I think there can be some alternative opportunities in the combination. For example, the first opportunity called arbitrage, mergers and acquisitions can be arbitrage. Everyone knows that the Oriental Pearl and BesTV are going to merge, and everyone can't understand the South Car and the North Car, and I can't understand it. However, I think I can buy ITB, but what is the reason for buying it? It is because it is about to absorb the merger, of course, it is a little late, in June, the absorption merger is an important arbitrage opportunity, you analyze all the absorption mergers in history, the difference is the deep and far-reaching absorption merger, there is also a 32% chance. I think there are still a lot of arbitrage opportunities in mergers and acquisitions.

There are still many opportunities for arbitrage, yesterday there was a peer talking about the matter of grade B, very few people ranked A, last year I think grade A is a very good opportunity, nothing dare, 14% to 18% of the gains, what a good cash management. I think this is a direction.

Of course, there are also opportunities for new stocks and subprimes, and if there are 4,000 mergers and acquisitions in a market a year, the market is too late to study. Since it is too late to study, is there a chance? In fact, I think there are also great opportunities in this direction.

In addition, there are also opportunities for new shares, including offline placements and online issuance, about 100 new shares were issued in 2014, and this year, at this rate, it should be at the level of 300. Under normal circumstances, in March next year, the registration system is raised, and I think there will be about 300-500 new shares issued every year. I think new stocks have a huge risk-free return, everyone used to buy bank wealth management products, think the yield is getting lower and lower, you can play new shares. I did the math, and this year there's probably a 20 percent chance of a fool's play.

In fact, we are now more and more abundant in the stock market, which puts forward high requirements for our managers. However, I think there is also a steady stream of strategies that I want to make, which is the second big point I would like to make.