After the National Day, a bright spot in the overseas market is the hot Chinese concept stocks led the rise. As of October 12, the Nasdaq Golden Dragon China Index (HXC.GI) rose 4.98% for five consecutive days, rising above 6,775 points, hitting a nearly three-week high since September 18.
Hot Chinese stocks, a number of Internet stocks rose day after day. Bilibili (BILI.O), for example, rose from 12.97 yuan on October 6 to 14.65 yuan, an increase of 12.95%; Iqiyi (IQ.O) is up 13.92 percent since Oct. 4.
China concept stock rally, should investors hurry to get on board?
Data show that as of October 11, there are currently four "China Concept Internet funds" on the market, such as BOCOM China Securities Overseas China Internet LOF, EFund China Securities Overseas Internet ETF and Link Fund, GF China Securities Overseas China Internet 30ETF, Harvest China Securities Overseas China Internet 30ETF.
Table: Details of the existing Chinese Internet theme funds in the market Source: Wind, interface news collation
In terms of size, the e-Fund China Securities Overseas Interconnection ETF is the largest. As of the end of the first half of this year, the size of the fund was 34.576 billion yuan, and the size of the connected fund reached 9.934 billion yuan.
On September 28, the amount of daily purchase (including fixed investment) of various shares of the E-Fund Zhongfeng Internet 50ETF Link Fund (006327.OF) was expanded to 100,000 yuan, previously, the daily purchase limit of the fund has been maintained at 5,000 yuan.
Data show that the e-fund China Securities Overseas Interconnection ETF (513050.SH) has risen by 2.89% in the past 5 days, and the Guangfa China Securities Overseas China Internet 30ETF (159605.SZ) has risen by 3.6% in the past 5 days.
But despite the rally, for most investors, the road back is still far away. Wind data show that as of October 11, the return rate of Guangfa and Harvest China Securities Overseas China Internet 30ETF has been -24.97% and -24.84%, respectively.
Although several "China Concept Internet" concept funds track different indexes, but from the index sample, most of them are listed overseas Chinese Internet leading companies.
Efund's product tracks the China Securities Overseas Internet 50 Index (H30533.CSI), a sample of 50 Chinese Internet company securities from Hong Kong and other overseas exchanges. The annualized return of the index in the past five years is -3.52%; The index's annualized return over the past three years has been -22.97%.
The BOCOM China Overseas Internet LOF tracks the China Securities Overseas China Internet Index (H11136.CSI), a sample index of Chinese Internet company securities listed on Hong Kong and overseas exchanges, to reflect the overall performance of Chinese Internet company securities listed overseas. The annualized return rate of the index in recent five years is -4.51%; The index's annualized return over the past three years has been -22.34%.
The two products track the China Securities Overseas China Internet 30 Index (930604.CSI), which chooses 30 securities of Chinese Internet companies from Hong Kong and other overseas exchanges as index samples. Compared with the CSI Overseas Internet 50 Index (H30533.CSI), each sample stock has a higher weight ratio due to the smaller sample size. China Securities Index Website Co., Ltd. showed that the top ten weighting stocks accounted for a total of 85.78%.
"From the plate point of view, Hong Kong stocks rebounded strongly and continued to be strong. Southbound funds were net buyers for the sixth consecutive day." Goldman Sachs research report said that the current valuation of Hong Kong stocks is at a relative bottom level, and a number of domestic economic data have improved marginally. It is expected that with the continuous introduction of stable growth policies, market confidence is expected to gradually recover, and it is still optimistic that the valuation of the Hong Kong stock market will be gradually repaired from a low level. In the medium term, the development of the AI large model of Hong Kong Internet technology and network companies has gradually realized the incremental value, which is expected to continue to attract capital increase. It is suggested to pay attention to the leading Internet platform whose performance is expected to be repaired, the flexible target of Hong Kong stocks under the recovery trend, and the investment opportunities such as the cultural and entertainment content industry and the new forces of car manufacturing.
Efunda Fund said that from the perspective of fundamentals, capital and policy, the Internet concept or usher in new growth opportunities. Basically, the economy is expected to stabilize and recover, and the performance of Internet manufacturers is growing strongly; On the capital side, southbound funds have continued to flow in this year, especially at the end of August, the net purchase of southbound funds reached 75.53 billion yuan, setting a new high this year; In terms of policy, the frequency of data-related laws is conducive to the orderly development of the industry.