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Why do foreign investors buy this index in a low-key manner? The reason behind it is shocking.

January 12, 2019 00:12
source: China Securities Network
edit:Eastern Fortune Network

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[Why does foreign capital buy this index in a low-key manner? The reason behind it is shocking. In 2018, foreign investors rushed to increase their positions in A-shares. At the beginning of 2019, they fell more and more, but if they were subdivided into indices, they would not buy the most big-name players, SSE 50 and CSI 300. It is not a "small fresh meat" GEM, a 50, but this low-key index: small and medium board.

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As the saying goes, a positive line changes beliefs, not to mention several. In 2019, A-shares started with a bright rebound, which boosted market confidence.

Then the problem is coming. The risk of buying a stock is still not small. Can you buy an index and realize active investment through passive products?

  of course can!fundJun said that if you buy the right index, you can not only copy the bottom of the market, but you can also copy the bottom of foreign investment.

Let us first look at what foreign investors have bought.

In 2018, foreign investors paid a large amount of A-shares, and in the beginning of 2019, they fell more and more, but if they were subdivided into indices, they would not buy the most big players.SSE 50,Shanghai and Shenzhen 300Nor is it "small fresh meat"GEM, create 50, but this low-key index: small and medium board.

Deep shareShareholding profile

From the data point of view, the small and medium board refers toNorthbound fundsThe index holding the stock market value accounted for the highest proportion of the total market capitalization of the index, the foreign shareholding ratio reached 3.03%, higher than the index of Shanghai Stock Exchange 50, Shanghai and Shenzhen 300, CSI 500, GEM, and GEM.

Not only that, but the constituent stocks in the small and medium-sized board are also good for foreign investors.

Foreign-owned positions re-allocated small and medium-sized board index constituents

What is the attractiveness of this index that is often confused with the GEM and the CSI 500? I don't know, the reason behind it is shocking:

The first is "the name is not true."

Although the name of the family is “small and medium-sized board”, 45 of the 100 constituent stocks are among the Shanghai and Shenzhen 300 constituent stocks, and the weight is 66.6%. In fact, it is the “big and medium-sized index”, while the CSI 500 mainly targets the stock in the middle. The small market capitalization and growth attributes of the GEM are more prominent.

Small and medium board refers to weightStock baseThis is the existence of the "big Mac"

Secondly, it has gathered a number of leading private enterprises.

The small and medium-sized board index was launched in 2006. Its constituent stocks are mostly leading enterprises in various sub-sectors. They have entered a high-growth stage with high volatility and a certain stage of high-growth stage. They are a group of stocks with potential and ability. Although the GEM has potential, some stocks are currently not competitive.

Third, the layout value is significant.

From the valuation point of view, the current PE (P/E ratio) of the small and medium board refers to 19.4 times, and the PB (P/B ratio) is about 2.7 times.Shanghai indexThe extreme value of 1664 points, the valuation is higher than the main board index, lower than the GEM index, the layout value is quite significant.

Fourth, the financial indicators of major companies in the small and medium-sized board index are better than those of the GEM, Chuang 50, and CSI 500, and the stability is very prominent.

As of January 2, 2019, 919 small and medium-sized board companies announced the yearPerformanceAccording to the forecast, there are 461 companies with pre-increased performance, accounting for 50.16%, and 45 companies with pre-earnings, and the proportion of companies with a total of 55.06%.

Expected companies with performance pre-happinessNet profitIn the median increase, a total of 117 companies' net profit increased by more than 100%; net profit increased by between 50% and 100%.

Fifth, the small and medium board refers to the new economic direction.

According to statistics, 4 of the top 5 industries in the small and medium-sized board are emerging industries, including electronics, medical biology, computers, and media. The total weight of the four is 49%. In addition, the small and medium-sized board covers many important topics of the new economy. Such as lithium batteries, Internet finance, graphene, online games, new energy and other fields.

High quality and low price, no wonder it can be favored by "smart money". Judging from the recent rebound in the market, the small and medium board index has given better performance in advance.

January 4 to January 10, 2019

SSE 50, CSI 300, CSI 500, GEM index performance

The small and medium board index rebounded significantly more.

January 4 to January 10, 2019

Small and medium board performance

  Huaxia FundXu Meng, director of the quantity investment department, said that the current valuation of the small and medium-sized board index has a large advantage, and its correlation with other indexes is small, and it has an irreplaceable position in asset allocation. For ordinary investors, the risk-to-reward ratio of direct investment in small and medium-sized stocks is not high, and the index layout is better, small and medium-sized boards.ETFAnd connecting funds are a better choice.

Outlook outlook>>>

  Guosen Securities Strategy Association: A shares will go out of W type in 2019, optimistic about 5G and other sectors

  Venture capitalists focus on the 2030 hotspots of medical, consumer and technology

  Everbright Securities: GEM is expected to usher in better performance in 2019

  Haitong Strategy Yu Yugen: Why is A stock common "spike round bottom"? The current valuation is at the bottom of history

Click to view>>>Spring market investment strategy The latest solution from the ace Top master solution  

Fund codeFund abbreviationUnit net valueHandling feeoperating
161118Yifangda small and medium board index classification0.711.20% 0.12%buy Account opening
270026GF small and medium board 300 connection0.831.20% 0.12%buy Account opening
163111Shen Wan Ling letter small and medium board index0.761.20% 0.12%buy Account opening
Data Sources:Oriental Fortune ChoiceData, Galaxy Securities, deadline: 2019-01-10

(Article source: China Securities Network)

                                (Editor: DF142)


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