Our reporter Xie Ruolin
Trainee journalist Mao Yirong
As China's economic growth exceeded expectations in the first quarter, the new "National Nine articles" landed.Haktuts50spinscoinmasterForeign-funded institutions are bullish on A shares one after another. At the same time, with the disclosure of the quarterly report of listed companies, QFII (qualified Foreign Institutional Investor) appears in the list of the top ten tradable shareholders of a number of companies. In addition, BlackRock and other foreign public offering funds have unveiled their positions in heavy stocks in the first quarter one after another. Schroeder Fund and Lianbo Fund issued the first equity product, sending out a signal that they will continue to strengthen the Chinese market. Full of confidence in China's economy and market prospects.
Foreign investors firmly sing more A shares.
Based on the optimistic prospects for China's economic growth, A-share valuation room for improvement and other factors, a number of foreign institutions have been singing more and more Chinese assets.
UBS upgraded the MSCI China index to "overweight".
Goldman Sachs believes that with the improvement and regulation of the A-share capital market system, the stock market still has more value to release, the valuation potential to increase by about 20%, a more optimistic estimate or up to 40% potential room for rise.
Morgan Stanley also maintains its position of standard allocation of Chinese stocks, preferring A-shares to offshore Chinese markets.
According to HSBC Holdings, more than 90% of emerging market funds have begun to increase their holdings in the Chinese stock market.
Huang Senwei, a senior market strategist at Lianbo Fund, told the Securities Daily that A shares have allocation advantages. In addition to the fact that the proportion of foreign investment has dropped to a relatively low level, relevant policies aimed at improving the quality of listed companies and corporate governance have just begun to be introduced one after another, representing that many enterprises with high quality, abundant cash flow and stable dividend ability still need to be excavated by the market.
"compared with the gains of US stocks in recent years have been concentrated in a few large technology stocks, A shares have a relatively wide range of investment opportunities." Huang Senwei further said that, for example, export-oriented "China invisible champions" with increasing overseas market share, high dividend companies benefiting from the domestic low interest rate environment and capital market reform policies, and undervalued cyclical stocks that are expected to benefit from stimulus policies and economic recovery.
Foreign investors actively long A shares
With the disclosure of some companies' quarterly reports, QFII positions have surfaced one after another. According to Wind statistics, as of 16:00 on April 29th, QFII has appeared on the list of the top ten outstanding shareholders of 563 listed companies. Among them, including Barclays Bank, JPMorgan Chase, Morgan Stanley, UBS Union Bank, Temasek Sifton Investment and other institutions to increase positions frequently.
For example, according to Nanjing Public's quarterly report of 2024, as of the end of the first quarter of this year, Morgan Stanley International Co., Ltd. held about 959 shares in the company.Haktuts50spinscoinmaster.26 million shares, compared with about 2.0986 million shares at the end of last year, which means that Morgan Stanley International Co., Ltd. significantly increased its stake in Nanjing Public shares by about 7.494 million shares in the first quarter of this year.
Among the QFII, Barclays was the most active in the first quarter. At the end of 2023, Barclays was among the top 10 outstanding shareholders of 100 A-shares. By the end of the first quarter of this year, Barclays had emerged as the top 10 tradable shareholders of 254 A-share companies.
Among the foreign-funded institutions investing in China, QFII from Middle Eastern countries has become a force that can not be ignored. For example, the Abu Dhabi Investment Authority and the Kuwait Government Investment Authority appear on the list of the top 10 tradable shares in the fields of new energy, automobile, medicine and biology. Among them, in the first quarter, Xinji Energy, Songyuan shares, Satellite Chemistry, Chenguang shares, Bettany and other companies have been increased by the Kuwait Government Investment Agency. Zijin Mining, Wanhua Chemical, Jinxin, Xingyu shares and other companies have been increased positions by the Abu Dhabi Investment Authority.
Foreign giants expand their business in China
It is worth noting that BlackRock, Fidelity, Lubermai and other international asset management giants' positions in public offering funds have also appeared.
Take BlackRock China New Vision as an example, the latest size of the fund is 2.595 billion yuan. Heavy positions in the first quarter include China National Offshore Oil, Zijin Mining, China Mobile, Sanmei shares, Chinese ships, and so on.
The latest management scale of Fidelity for six months is 680 million yuan. The heavy stocks in the first quarter include China National Offshore Oil, Shaanxi Coal Industry, China Shenhua, Midea, Fidelity Australia and so on.
In fact, the product line of foreign public offering is gradually improving. Both Schroeder Fund and Lianbo Fund launched their first equity products during the year, and the product matrices of BlackRock Fund, Fidelity Fund and Lubermai Fund continued to expand.
Since the beginning of this year, a number of foreign-funded institutions, including Lianbo Fund and Standard Chartered Securities, have distributed the Chinese market by means of capital increases and new securities firms, and the pace of distribution in China has been accelerating. Since April alone, Allianz Fund, a wholly foreign-owned public fund company, has announced that it has been officially approved to develop its business, and the wholly foreign-owned securities firm Faba Securities has also been approved to set up.
According to statistics, 10 foreign-controlled securities companies, 9 wholly foreign-owned fund management companies and 3 foreign-controlled futures companies have been approved to do business in China. Among the fund companies, six were newly established after the introduction of the restriction policy on foreign investment shares of fund management companies in 2020. By the end of the first quarter of this year, the six newly established wholly foreign-owned fund companies had been approved a total of 32 public fund products, with a total product size of more than 26.8 billion yuan.