Wednesday (May 8)PlaypokerA-share pullback across the board, A50 core assets adjusted synchronously, Ningde era, China Ping an, Hengrui Pharmaceutical, BYD and other heavyweights all fell by 1.PlaypokerMore than .5%, Guizhou Moutai fell slightly by 0.34%, and China Merchants Bank fell by 0.86%.
Core leader wide base A50ETF Warburg (159596) opened low and left low, closing down 1.17% at 1.015 yuan, stopping Lianyang two times. The volume of turnover was slightly smaller than that of yesterday, with a turnover of 152 million yuan.
On the capital side, northbound funds, which have always preferred core assets, sold a net 4.044 billion yuan today, shipping for two consecutive days. Thanks to the sweeping volume of nearly 10 billion yuan a day on Monday, the total amount, as of today, the net inflow of northbound capital this week still exceeds 3.1 billion yuan.
According to past experience, northbound funds play an important role in boosting the core asset market. Northward funds have continued to flow back to A shares since the beginning of the year, with the CSI A50 index rising 6.85% over the same period, successfully outperforming the Shanghai Composite Index (5.16%) and Shanghai and Shenzhen 300 (5.8%). ETF, which tracks the CSI A50 index, has also risen at the same time, such as the representative A50ETF Huabao (159596), whose floor prices hit new highs since listing on Monday and Tuesday.
So, will the follow-up northbound funds continue to return to A-shares? Guojin Securities Research and judgment, "will"!
According to the agency's statistics, by the end of April, the net inflow of northbound funds reached 74.244 billion yuan, much higher than the annual net inflow in 2023 (43.7 billion yuan) and close to the annual net inflow in 2022 (90 billion yuan). If the uniform caliber is the cumulative net inflow in the first four months of each year, this year's net inflow is also the fifth highest in the past decade. This can basically verify that this round of foreign capital return is not a short-term pulse buying.
It is also worth noting that during the net northward inflows in the first four months of this year, interest rates on US debt actually continued to rise as expectations of interest rate hikes were fixed. The net inflow of northward capital in the first four months is not due to the passive inflow brought about by the easing of overseas liquidity environment, but more likely to be brought about by the strength of the Chinese market itself.
Looking ahead for more than half a year, Guojin Securities said that since Powell also mentioned at the news conference of the May interest rate meeting that there is little possibility of further interest rate increases, we expect that there is little room for a sustained upward trend in US bond interest rates. Superimposed in July, the third Plenary session of the CPC Central Committee focusing on economic reform was held, and the overall market expectation was positive. So on the whole, we judge that northward funds will continue to buy Chinese asset targets in the future.
On the performance side, thanks to the operational resilience of the leading stocks in the covered industry, the performance of the CSI A50 Index in 2023 is relatively good. According to the overall caliber statistics, in 2023, the total net profit of the 50 constituent stocks of the CSI A50 index belonging to the parent company totaled 893.613 billion yuan, down 0.68% from the same period last year; the total operating income reached 12.66 trillion yuan, an increase of 2.32% over the same period last year.
2023 is the year of economic repair, and the overall profits of A-share listed companies have declined. compared with other broad-based indices of A-shares, the CSI A50 index has the smallest year-on-year decline, with the Shanghai 50 index falling 7.8% and the Shanghai and Shenzhen 300 down 1.64%. In terms of revenue growth over the same period last year, the CSI A50 index also has a comparative advantage, significantly better than the Shanghai 50, and only 0.3% less than the Shanghai and Shenzhen 300.
Combining the northward capital return trend and performance support, the core asset market represented by A50 can still be expected, the CSI A50 index pullback or a better opportunity to attract funds. In terms of investment tools, you can pay attention to A50ETF Warburg (159596) on the floor and the linked fund of the ETF off-site (referred to as "Huabao Securities A50ETF initiation connection", Class A 021216Category C 021217).
Public data show that A50ETF Huabao (159596) and its over-the-counter linked funds passively track the CSI A50 Index, which gathers the core leader of the A-share industry, and 50 constituent stocks come from 50 CSI tertiary industries, comprehensively characterizing A-share benchmark core assets! It is worth mentioning that A50ETF Warburg (159596) has now been officially included in the two financing targets, providing more investment opportunities and strategic tools for investors to participate in core asset investment.
Pictures and data come from Shanghai and Shenzhen Stock Exchange, iFinD and Warburg Fund.
Risk Tip: when participating in margin trading, investors are invited to carefully read the relevant business rules, business contracts and risk revelations, and carefully evaluate their own economic situation and financial ability, so as to avoid unbearable losses as a result of participating in margin trading. The underlying index of A50ETF Huabao (159596) and its linked funds is the CSI A50 Index, which has a base date of 2014.12.31 and a release date of 2024.1.2, and the composition of index stocks is timely adjusted in accordance with the rules governing the compilation of the index. The CSI A50 index rose and fell in the past five complete years: 2019, 43.71%; 2020, 33.41%; 2021,-5.38%; 2022,-21.19%; 2023,-12.42%. The historical performance of the index does not predict the future performance of the index. In this paper, the index stocks are only displayed, and the individual stocks are not described as any form of investment advice, nor do they represent the position information and trading trends of any fund under the manager. The risk level of the fund and its linked funds assessed by the fund manager is R3-medium risk, which is suitable for investors with an appropriate rating of C3 or above. Any information that appears in this article (including but not limited to individual stocks, comments, forecasts, charts, indicators, theories, any form of expression, etc.) is for reference only and the investor is responsible for any discretionary investment behavior. In addition, any point of view, analysis and forecast in this article does not constitute any form of investment advice to the reader, nor is it liable for direct or indirect losses arising from the use of the contents of this article. Fund investment is risky, the past performance of the fund does not represent its future performance, and the performance of other funds managed by fund managers does not constitute a guarantee of fund performance, so fund investment should be cautious.
