Hong Kong stock ETF rising more and more selling?
Since late April, the Hong Kong stock market rebounded strongly. The Hang Seng Index has risen 19% since April 19 and ended May 20, according to Wind.Personalizedpokerchips.84%, the Hang Seng Technology Index rose 23.19%. A number of Hong Kong stocks ETF ushered in a big rise, Huaxia Hang Seng Internet Technology Industry ETF, Hua an Hang Seng Internet Technology Industry ETF, Yi Fangda China Securities overseas Interconnection ETF, Castrol overseas China Internet 30ETF, Guangfa overseas China Internet 30ETF all rose by more than 25%.
It is worth noting that many of the above ETF in the net worth rose at the same time, encountered substantial redemption. From the perspective of net capital inflow, during the period from April 19 to May 20, the net ETF outflow of Huaxia Hang Seng Internet Technology Industry was 3.323 billion yuan, while Huaxia Hang Seng Technology ETF and Yifangda overseas interconnected ETF outflow exceeded 1 billion yuan. From the perspective of the rate of change of fund share, the redemption rate of Yifangda Hang Seng ETF fund share is 72.51%, and that of Morgan Hang Seng Technology ETF fund is 42.1%.
However, the share of several ETF funds related to high dividend assets has increased significantly. During the period from April 19 to May 20, Cathay Pacific CSC's ETF net worth of mainland Hong Kong state-owned enterprises increased by 14.83 per cent, with a share growth rate of 61.39 per cent, while fund shares increased from 65 million on April 19 to 105 million on May 20, according to Wind.
Several Hong Kong stocks ETF rose sharply and suffered large redemptions at the same time.
Since April 19, the Hong Kong stock market ushered in a sharp rise, Hong Kong stock ETF rose, but a number of ETF in the net worth rose at the same time, suffered significant redemptions.
During the period from April 19 to May 20, Yifangda Hang Seng ETF rose 20.11%, and the fund share changed by-72.51%. Specifically, the ETF was established on April 10 this year, with a scale of 320 million yuan. In terms of performance, the ETF can be said to be "born at the right time". As soon as it was established, it caught up with the overall rise in the Hong Kong stock market, but the fund's share gradually declined. as of May 20, the fund's share was 88 million, down 72.51 per cent from 320 million at its inception.
During the same period, the redemption rate of Morgan Hang Seng Technology ETF fund share reached 42.1%, Castrol Hang Seng Chinese enterprise ETF fund share redemption rate reached 20.96%, Hua an Hang Seng Technology ETF fund share redemption rate reached 18.8%.
According to the observation of third-party analysts, the Hong Kong stock market has experienced more than three years of shock and decline, and from the perspective of fund share changes, the relevant ETF tracking Internet technology has formed a trend of "selling more and more rising, falling more and more buying". For example, when the Hong Kong stock market rose significantly in January this year, the relevant ETF redemption was also obvious.
In addition, during the same period, the redemption rates of ETF in some overseas markets were also relatively high. The redemption rates of ETF in rich countries such as NASDAQ 100ETF, Castrol Germany DAXETF, Huitianfu MSCI US 50ETF, Rich Standard & Poor's oil and gas exploration and production selected industries ETF fund redemption rates were all over 30%, Huatai Berry Southern Dongying Singapore Exchange Pan-Southeast Asia Technology ETF, Huitianfu Nasdaq Biotech ETF all had a redemption rate of more than 18% in the past month.
There has been a marked increase in the number of Hong Kong stock dividend ETF applications.
At the same time, the share of a number of ETF funds related to high dividend assets increased significantly.
During the period from April 19 to May 20, Cathay Pacific CSC's ETF net worth of mainland Hong Kong state-owned enterprises increased by 14.83 per cent, with a share growth rate of 61.39 per cent, while fund shares increased from 65 million on April 19 to 105 million on May 20, according to Wind. It is reported that the ETF tracks the CSI Hong Kong mainland State-owned Enterprise Index. By the end of the first quarter, the top 10 heavy stocks were China Mobile, Industrial and Commercial Bank of China, Construction Bank, China Offshore Oil, Bank of China, China Merchants Bank, PetroChina, China Petrochemical shares, Shenhua of China, and Agricultural Bank of China.
In addition, during the same period, Huatai Bailui Securities Hong Kong Stock Exchange High dividend Investment ETF, Wiguo Hang Seng Hong Kong Stock Connect High dividend low volatility ETF Fund share increased significantly, with a share growth rate of 34.26% and 29.34% respectively, while Huaxia Hang Seng Chinese enterprises' ETF share grew by 15.66%.
It is worth mentioning that recently, there has been a marked acceleration in the application of Hong Kong stocks with high dividend assets by public offering funds. According to Wind data, so far this year, there have been a total of 12 related product filings, 7 of which only began to submit declaration materials in April. It is reported that of the 12 products, 10 are index products, including ETF, ETF linked funds and general index funds, and 2 are mixed funds.
Huatai Perry Fund believes that after a three-year trough, Hong Kong stocks have recently ushered in a strong upward attack, and positive changes on the policy side and good expectations of economic repair have laid a solid foundation for the performance of Hong Kong stocks, while the return of overseas capital and transactional funds has led to an improvement in the capital side, which has jointly promoted the strong performance of the Hong Kong stock market this round, and the overall economic outlook of Hong Kong may have gradually turned optimistic. At present, Hong Kong stocks are in a relative valuation depression, with the improvement of the mainland economy and corporate earnings, the Hong Kong stock market is expected to continue to rebound, the current allocation of more cost-effective Hong Kong stock dividend assets may be relatively better.
Two major directions deserve to be paid more attention to.
Looking forward to the future performance of the Hong Kong stock market, a number of public offering funds are more optimistic, believing that with the improvement of fundamentals and policies, as well as the continued inflow of southward capital and foreign capital, the liquidity of the Hong Kong stock market will be improved and is expected to continue the upward trend. In the direction of investment, the economic recovery and dividend assets deserve to be paid more attention to.
Reviewing the current performance of the Hong Kong stock market, the ICBC Credit Suisse Fund believes that, on the one hand, it is related to the long-term low valuation of the Hong Kong stock market. As China's economy continues to recover and the Fed's interest rate hike may come to an end, the Hong Kong stock market has both valuation and growth advantages for global capital allocation, and its attractiveness continues to rise; on the other hand, on April 19 this year, the Securities and Futures Regulatory Commission issued five capital market cooperation measures with Hong Kong, which will help smooth the interconnection mechanism, introduce capital running water into Hong Kong's capital market, and further enhance the liquidity of Hong Kong stocks. In addition, the news that the tax on Hong Kong stock dividends is expected to be reduced has boosted investors' enthusiasm for the Hong Kong stock market.
HSBC Jinxin Fund believes that, on the one hand, the shareholder returns of some leading companies in the heavy Internet sector in Hong Kong have been raised to more than 5%, and the higher shareholder returns have been concerned and favored by investors. On the other hand, US and Japanese stocks have continued to fluctuate recently, and under the demand for global asset rebalancing, due to the relatively high performance price of most of the core assets of Hong Kong stocks, overseas investors have reduced their long positions in US stocks and replaced Hong Kong stocks instead.
Specific to the investment direction, Hu Di, director of the Index and Quantitative Investment Department of Morgan Asset Management (China), believes that relative certainty can be found from globally priced resource products, traditional high-dividend telecom operators, and high-dividend sectors such as electricity. In addition, the high-quality growth sector of Hong Kong stocks, including leading companies with the ability to "go out to sea", is also worthy of attention. In terms of allocation, Hong Kong stocks can focus on the two major allocation directions of economic recovery and the combination of offensive and defensive dividend assets.
However, some fund managers have also expressed caution about investing in the Hong Kong stock market. Xu Yan, fund manager of Dacheng Fund, said in a recent live broadcast that he does not believe that it is the spring for Hong Kong stock investment, as many people say. "Even if there was spring, it might be summer now." Xu Yan thinks so.
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