Various signs show that against the backdrop of domestic economic recovery, Chinese assets are becoming increasingly attractive to global investors.
Recently, foreign capital has accelerated its inflow into the A-share market, opening the "buy, buy, buy" model.Wind data shows that as of the close on July 4, since the beginning of this year, northbound funds have achieved a cumulative net purchase of 76.3 billion yuan.At the same time, the frequency of research on A-share listed companies by foreign institutions has increased.A number of foreign institutions have recently stated that they continue to be optimistic about the long-term investment value of the Chinese market, and the holdings of funds under some foreign giants have also added A-share market stocks.
According to the survey results of the 2022 Global Reserve Management Symposium released by UBS Asset Management on July 4, 85% of the more than 30 central bank reserve managers surveyed around the world have considered or have invested in RMB.Looking at 2021 and 2022 and the expected net allocation change, the renminbi has almost reached the strength of the dollar.
Chen Li, chief economist of Chuancai Securities, said in an interview with the "Securities Daily" that the recent high inflation levels in the European and American economies have led to increased market volatility, which has a negative impact on investor sentiment.At this time, the A-share market has recovered and continued to rebound, highlighting the high cost performance and good allocation opportunities.As the Fed continues to tighten, it is expected that overseas economic growth will likely remain at a low speed in the short term, and foreign capital will continue to flow into the A-share market.
Since June, China's A-share market has gone out of an independent market against the backdrop of the Federal Reserve raising interest rates and expectations of a recession in the U.S. economy.China's economy continues to recover, and many overseas capitals have begun to turn to Chinese assets.This trend can also be seen from the data of northbound funds in the first half of the year. Wind data shows that in the first half of this year, northbound funds accumulated a net purchase of 71.799 billion yuan. Except for the net selling situation in March, all other months were net purchases. .Among them, the net purchase of northbound funds in June was 72.96 billion yuan.On a weekly basis, the net purchase of northbound funds was 10.231 billion yuan last week, which was a net purchase of 5 consecutive weeks, with a cumulative net purchase of 93.874 billion yuan for the 5 weeks.
At the same time, more and more foreign institutions are optimistic about A shares and frequently investigate listed companies.Wind data shows that as of July 4 this year, a total of 890 foreign institutions have participated in the investigation of A-share listed companies, an increase of 50.85% year-on-year, and the cumulative number of investigations has been 5,061, an increase of 122.76% over the same period last year. A total of 4,334 A-share listed companies have been investigated. , an increase of 124.91% year-on-year.Among them, Shanghai Baoyin Asset Management Co., Ltd. conducted 119 surveys, UBS Group conducted 108 surveys, and POINT72 ASSET MANAGEMENT, LP conducted 101 surveys, and the survey frequency was at a relatively high level.
Data shows that in June alone, 272 foreign-funded institutions participated in the survey of A-share listed companies, with a total of 553 surveys and a total of 535 A-share listed companies.Among them, 117 foreign-funded institutions have conducted two or more surveys.Chen Li said that the continuous inflow of northbound funds represents the affirmation of foreign investment in China's economic development. As an important indicator of global economic trends, China's asset allocation cost performance will gradually emerge with economic development.However, the current scale of foreign investment in A shares is still at a low level compared to overseas markets, and it is expected that there will be room for growth in the future.
The reporter noticed that funds owned by foreign institutions also favor the allocation of Chinese assets and increase their positions in many Chinese stocks.For example, JPMorgan Chase's flagship fund "Morgan China A-Share Opportunity Fund" increased its holdings in power and banking stocks in May; Allianz Investment's China stock fund "Allianz Shenzhou A-Share Fund" also recently adjusted its positions. , increased its holdings of some stocks.
"The addition of A-share stocks by foreign giant funds reflects their confidence in the long-term improvement of China's economy." Wu Chaoming, deputy director of the Financial Information Research Institute, said in an interview with a reporter from "Securities Daily" that foreign investors' confidence in Chinese assets comes from multiple aspects. .One is the dislocation of the policy cycle between China and the United States. Constrained by high inflation in the United States and anchored inflation expectations, the Federal Reserve will continue to raise interest rates during the year, while the domestic monetary policy is prudently implemented with a “me-based” monetary policy. In the case of relatively loose monetary and fiscal policies , which is conducive to the improvement of asset valuation.Second, the domestic economy has gradually recovered since May, and continued to build a bottom in June. Expectations of a faster recovery in the second half of the year have been strengthened, and earnings expectations have increased. This is in sharp contrast to the expected economic slowdown or even recession in the United States.Third, the exchange rate is expected to be stable.Although the US dollar index fluctuates at a high level, the RMB exchange rate is expected to be stable, which is conducive to the stability of cross-border capital.
Our reporter Bao Xing'an trainee reporter Han Yu
(Editor in charge: Jiang Ninglu)
