Recently, market volatility has increased, but foreign capital is still firmly optimistic about the medium and long-term development prospects of A-shares. An important reason is that as A-shares are gradually included in more international mainstream indexes, more foreign-funded A-share markets will be attracted.
At 5 am on May 14th, Beijing time, MSCI announced the results of the semi-annual stock index review and the newly included A-share stock list in the first stage of A-share expansion. This time, it was included in the 18 GEM stocks of MSCI. In the end, what were foreign investors lurking in advance?
Foreign giants focus on "buy buying"
Recently, market volatility has increased, but foreign capital is still optimistic about the medium and long-term development prospects of A-shares. Many of the 18 GEM companies that have been included in the MSCI list have been recognized by foreign-funded institutions.
Aier OphthalmologyThe recently released 2019 quarterly report shows that the company achieved operating income of 2.24 billion yuan in the first quarter, an increase of 28.5%; net profit of home return of 300 million yuan, an increase of 37.8%. In this regardHaitong SecuritiesIt said that after deducting overseas mergers and acquisitions, the company’s endogenous net profit growth rate exceeded 30%, maintaining rapid growth, optimisticAier OphthalmologyBuild an “eye health ecosystem”.
At the same time, the first quarter of this year also showed thatAier OphthalmologyReceived the favor of foreign asset management giants, including AberdeenAsian assetsManagement Co., Ltd. - Aberdeen Global - China A-share fund newly held 18.71 million shares; Gaochun Capital - HCM China Fund newly held 37,498,900 shares. According to the "Daily Economic News" reporter, Aberdeen Asset Management is headquartered in the UK. In recent years, it has risen rapidly in the overseas fund market. Its subsidiaries and administrative hubs are located in major financial centers around the world, such as London and Singapore.
Sorghum Capital is a company focused on long-term structured value investments. Since its inception, it has been positioned to be a long-term investor with an independent investment perspective. The funds entrusted to management are mainly from long-term global institutional investors, including Sovereign wealth funds, pension funds and family funds.
In addition,Sanhuan GroupAlso got a new entry of two foreign institutions, including the Norwegian CentralbankXinjin holds 14.6493 million shares, and Quebec Savings Investment Group has newly held 1155.53 million shares. In addition, SwitzerlandbankLimitedPilot intelligenceIt has increased its holdings and increased its holdings of 1.778 million shares, with a total holding of 9.145 million shares at the end of the period.
However, there are also foreign-invested institutions that have begun to reduce their shareholding in the GEM.Ningde eraA quarterly report shows thatGuotai Junan- China Construction Bank - Hong Kong and Shanghai HSBCbankAt the end of the period, it held 6,666,400 shares, which was 857,300 shares less than the previous period; Merrill Lynch held at the end of the period.Ningde era4,049,300 shares, down 12,270 shares compared with the previous period; and the Canadian Pension Plan Investment Committee and the Gaochun Capital-HCM China FundNingde eraThe number of shares held remains unchanged.
Hong Kong capital has already been laid out in advance
In the rebound of A-shares this year, Hong Kong capital continued to flow into A-shares through Shanghai and Shenzhen-Hong Kong Stock Connect channels, and the net inflow amount continued to hit a new high. And what are the 18 GEM stocks selected for the MSCI list, and which ones are lurking in Hong Kong?
The reporter noted that Hong Kong Securities Clearing Co., Ltd. appeared in the list of shareholders of many GEM listed companies that were selected for MSCI. It is understood that Hong Kong Securities Clearing Company Limited is a wholly-owned subsidiary of the Hong Kong Stock Exchange. The shares held by it are the sum of the shares of the H-share shareholders' accounts of the agent. The company is only the agent holding these shares, behind the shareholders of numerous H-shares.
Mindray MedicalAccording to a quarterly report, Hong Kong Securities Clearing Co., Ltd. has a new holding of 592,800 shares.Ningde eraAccording to the data disclosed in the quarterly report, Hong Kong Securities Clearing Company Limited has acquired 10.4151 million shares. At the same time, Hong Kong Securities Clearing Company Limited holds newOriental wealth49.26 million shares.
Straight flushIt is a rare stock of cattle stocks this year. The company's share price has risen by 210% in just over two months from January 30 to April 8. According to the quarterly report data disclosed by the company, Hong Kong Securities Clearing Co., Ltd. has newly acquired 3.292 million shares.
In addition, some GEM stocks that have appeared on the MSCI list have been increased by Hong Kong capital: Hong Kong Securities Clearing Co., Ltd.Aier Ophthalmology171.1 million shares, an increase of 47.346 million shares compared with the previous period;Sanhuan GroupReceived a substantial increase in Hong Kong Securities Clearing Co., Ltd., holding 59.979 million shares at the end of the period, an increase of 30.5 million shares over the previous period; Hong Kong Securities Clearing Co., Ltd. held at the end of the periodLepu Medical278.45 million shares, an increase of 1.023 million shares compared with the previous period;Huichuan TechnologyReceived an increase in the holding of Hong Kong Securities Clearing Co., Ltd., holding 10,629,500 shares at the end of the period, an increase of 50.16 million shares from the previous period;WatsonReceived 2.64 million shares from Hong Kong Securities Clearing Company Limited.
Beijing Qinghequan Capital told reporters: "This MSCI joins the GEM stocks and represents the further development of A-share internationalization. We believe that the overall compliance with the market's expectation of 'into the friction' also means that foreign capital is hard to be more important to A-shares. The lack of asset class and the continuous inflow of foreign capital also prove this point. In addition, from the historical process after the inclusion of MSCI in overseas markets, the driving effect will be more significant than the direct incremental funds."
Beijing Xingshi Investment also believes that the “discourse power” of foreign capital in A-shares has been improved. In the short term, due to the strong certainty of foreign capital inflows, it will help to form certain support for the bottom of the market. In the medium and long term, the increase in the proportion of foreign capital will further enhance the internationalization level of A-shares and guide the investment style of A-shares to change in the medium and long term.
(Article source: Daily Economic News)