superrainbowmegaways| Foreign investors increase their holdings of A shares! Large exposure of positions

The market continues to pay attention to the trend of foreign capital to Chinese assets.

The reporter checked the data and found thatSuperrainbowmegawaysIn the first quarter of this yearSuperrainbowmegawaysAs a group of important foreign investors, QFII has increased its holdings in a number of A-share listed companies, which is a microcosm of the recent foreign allocation of Chinese assets.

Behind the positive attitude of some foreign investors towards Chinese assets is that Chinese assets have entered the value range after successive adjustments. In addition, a series of policy measures such as regulatory promotion of listed companies to strengthen dividends and buybacks have also enhanced the expectation of asset return in China, promoting the return of relevant funds or strengthening the allocation of relevant funds.

A number of A-share listed companies have won foreign capital to increase their holdings.

Data show that in the first quarter of this year, QFII increased its holdings in a number of A-share listed companies.

For example, Peraiya (603605) recently disclosed its quarterly report of 2024, which showed that GIC held about 691 per cent of Peraia at the end of the quarter.Superrainbowmegaways.78 million shares, while at the end of 2023, GIC held about 289.Superrainbowmegaways.03 million shares, which means that in the first quarter of this year, GIC significantly increased his holdings of about 4.0275 million shares.

Pelaiya's case is not alone. According to Chuangyuan's quarterly report for 2024, as of the end of the first quarter of this year, Morgan Stanley International Co., Ltd. held about 3.2057 million Chuangyuan shares, an increase of about 1.6322 million shares since the end of last year.

The reporter found that in addition to the above A-share shares, some QFII institutions increased their holdings in a number of A-share companies in the first quarter of this year, including Wanfu Bio (300482), Huafeng Chemical (600309), and so on.

In addition, the data also show that many QFII institutions continued to hold Chengde Lulu (000848), property gold wheel, including a number of A-share listed companies in the first quarter of this year, and the number of shares remained basically stable.

In addition, another important channel for the allocation of A-shares on behalf of foreign capital-northbound Land Stock Tong Capital has also continued the pace of net buying of A-shares. Data show that since the beginning of the year, Northbound Land Stock Tong has accumulated a net purchase of A shares of nearly 50 billion yuan.

Just last week, HHLR Management Co., Ltd., owned by Hillhouse, raised a 6 billion QFII fund to increase China's asset allocation and continue to invest in the A-share market. As an independent US dollar secondary market investment management platform owned by Hillhouse, HHLR was registered in Singapore in 2007 and was approved as QFII by the Securities and Futures Commission in 2012. According to public data, HHLR's historical positions in A-shares include well-known listed companies such as Ningde Times (300750), Zijin Mining, Gree Electric Appliances (000651) and Wanhua Chemical.

According to the understanding of the Securities Times, the above QFII funds are mainly invested in science and technology enterprises, especially in the direction of new quality productivity. For example, the strategic emerging industries represented by the new generation of information technology, biotechnology, new energy and new materials, brain-computer interface, humanoid robot (300024) and other future industries. In terms of capital allocation, Hillhouse, through full-chain investment, not only uses the "co-incubation" model to promote the seed growth of scientific and technological enterprises, but also has VC, PE, M & A business, covering the primary and secondary markets, and is driven by cross-regional and cross-domain in-depth industrial research to find high-quality targets in high innovation index industries. The new QFII fund will also increase the proportion of China's asset allocation and continue to invest in the A-share market.

Middle Eastern capital is eye-catching.

Among the foreign institutions and funds investing in China in this round, the capital from the Middle East attracts people's attention.

For example, on the evening of April 22nd, A-share listed company Hengli Petrochemical (600346) disclosed that Saudi Aramco intends to buy its shares from Hengli Group, accounting for 10% of the company's issued share capital plus one share. If the current share price of Hengli Petrochemical is estimated, the above equity investment of Saudi Aramco has reached the level of 10 billion yuan. This is also Saudi Aramco's plan to spend a lot of money on A-share listed petrochemical enterprises again after buying shares in Rongsheng Petrochemical Corporation (002493).

Since 2024, Middle East Capital has also increased its efforts to investigate A-share companies. Including the Abu Dhabi Investment Authority, Oman National Reserve Fund and other Middle East investment institutions appeared in Jingsheng Mechanical and Electrical (300316), Koboda, China Control Technology and other listed companies' research list, compared with the same period last year, the research efforts have been increased compared with the same period last year, the specific industries are focused on power equipment, automobiles, medicine and biology, and so on. In addition, the Saudi Public Investment Fund, the Saudi Ministry of Investment, the Saudi National Pension Fund and Saudi Aramco (Saudi Aramco) collectively appeared on the research list of Jingke Energy institutions.

The reporter previously interviewed a number of investors in the primary and secondary markets who were in close contact with Middle Eastern capital, and all expressed the same view that it is a trend for Middle Eastern capital to increase the allocation of Chinese assets. On the one hand, in order to balance asset allocation in the world, it does not rely too much on a country's product resources and technology supply. On the other hand, many countries in the Middle East are promoting economic restructuring and achieving diversified development directions. Chinese companies can provide technologies and products that meet the needs of their transformation and become good partners.

China's asset attractiveness is increasing

The attractiveness of Chinese assets has increased after successive adjustments in the prices of Chinese equity assets in previous years.

The data show that the Shanghai Composite Index has adjusted for two consecutive years between 2022 and 2023, while the Hang Seng Index has adjusted for four consecutive years between 2020 and 2023. The continuous adjustment of the market has made China's equity assets gradually enter the value range.

Some foreign institutions believe that the attractiveness of Chinese companies has increased, including that overseas investors are still underallocated Chinese assets, and marginal improvement variables can bring capital return.

In addition, in terms of policy, strengthening differentiation and buybacks are also considered by some foreign institutions to enhance the investment value of Chinese companies.

The reporter found that since the beginning of this year, Chinese companies have stepped up their dividends and buybacks, both in the A-share market and in the Hong Kong stock market. For example, some leading Internet companies listed in Hong Kong have stepped up their repurchase efforts since the beginning of this year, showing not only their confidence in their own development, but also their friendly attitude towards investors, attracting the return of overseas capital and promoting a strong rebound in the share prices of related companies. Among the companies that promoted massive buybacks during the year, Tencent Holdings shares rebounded more than 30 per cent from their lows during the year, while Meituan rebounded more than 80 per cent from its lows during the year, according to the data.

In other policies, Chinese assets are also becoming more attractive to foreign investors.

For example, recently, the Ministry of Commerce, the Ministry of Foreign Affairs, the National Development and Reform Commission, the Ministry of Science and Technology, the Ministry of Industry and Information Technology, the people's Bank of China, the State Administration of Taxation, the State Administration of Financial Supervision, the China Securities Regulatory Commission and the safe jointly issued a number of policies and measures on further supporting overseas institutions to invest in domestic science and technology enterprises (referred to as "several measures"). The "several measures" focus on the business characteristics of overseas institutions and the development needs of domestic science and technology enterprises, and put forward 16 specific measures to optimize management services, increase financing support, strengthen exchanges and cooperation, and improve the exit mechanism. Relevant departments in various localities are required to strengthen cooperation, integrate resources, optimize services, jointly do a good job in all kinds of work of overseas institutions investing in domestic science and technology enterprises, and promote the formation of a comprehensive science and technology financial service system. Give better play to the role of finance in supporting scientific and technological innovation.

Recently, a number of foreign giants have also applied for QFII/RQFII qualifications to layout China's capital market, regionally covering Singapore, Australia, the United Kingdom and other countries. Some hedge fund managers from Hong Kong have revealed that the mainland has issued measures to encourage enterprises to list in Hong Kong. Recently, the Hong Kong market has also been relatively active, and the trend of overseas capital return is obvious. It can be seen that the wind direction of foreign institutions has changed, reflecting that the position of China's economy and capital market in the portfolio management of foreign investors is changing.

Editor: Ye Shuyun

Proofreading: ran Yanqing

2024 Securities Times "looking for venture capital 'Golden Eagle' and discovering enterprise 'new seedlings' plan starts ceremoniously, illuminates the dream of the times and blooms the light of the times."

Click on the poster to sign up and quickly stamp ↓↓↓

Copyright notice

All the original content of each platform of the Securities Times shall not be reproduced by any unit or individual without written authorization. Our society reserves the right to investigate the legal responsibility of the relevant actors.

For reprint and cooperation, please contact the assistant of Securities Times, Wechat ID:SecuritiesTimes

END

This article was first posted on the official account of Wechat: Securities Times. The content of the article belongs to the author's personal point of view and does not represent the position of Hexun. Investors operate accordingly, at their own risk.