The Internet, which had been significantly adjusted in the previous period, rebounded for two consecutive trading days. It is worth noting that in the first quarter of this year, public funds have significantly increased their holdings of leading companies in the sector. Many star fund managers have repeatedly stated publicly that there are currently very cost-effective investment opportunities in the Internet sector of Hong Kong stocks.

In the past three days, more than ten billion Hong Kong dollars have gone south, and Internet ETFs have risen sharply

On May 11, the Hong Kong stock market rebounded strongly. The Hang Seng Index once hit 20,000 points during the session, and the Technology Index also stood at 4,000 points, but the indexes all fell back in late trading. As of the close, the Hang Seng Index rose 0.97%, and the Hang Seng Technology Index rose 2.89%. According to Wind data, the total net inflow of southbound funds was 6.292 billion Hong Kong dollars on May 11, and the cumulative inflow in the past 3 days exceeded 10 billion Hong Kong dollars.

A number of Internet stocks also ushered in sharp gains. Among them, Kuaishou rose by more than 7%, Meituan rose by more than 6%, and Tencent rose by nearly 3%. The Hong Kong stock Internet ETF once rose by more than 6.9%, and as of the close, it rose 3.41%, with a turnover rate of 76%. According to the latest data from the Shanghai Stock Exchange, the net inflow rate of the ETF in the past five trading days has exceeded 4%, with a total of over 13 million yuan.

Since the second half of 2021, regulatory policies for the Internet sector have become the focus of the capital market. The latest research report of Everbright Securities stated that this round of Internet anti-monopoly supervision cycle has had a far-reaching impact on the growth model and mode of operation of the platform economy. The fundamentals of Internet companies will face certain challenges in the future, but the overall development prospects of the industry in the medium and long term are still promising. .

Considering that the current platform economy-related companies have achieved a certain first-mover advantage and have begun to actively make strategic adjustments and layouts, it is expected that the platform economy will still achieve further development in the future.

Everbright Securities believes that the relevant sectors have now reached the time to be actively deployed, the valuation is expected to be repaired first in the short term, and the long-term performance will return to the fundamentals of the industry.

It is worth noting that on April 29, the Political Bureau of the Central Committee of the Communist Party of China proposed to “complete the special rectification of the platform economy and implement normalized supervision”, setting the tone for the next stage of Internet industry supervision.

Guolian Securities said that this indicates that the regulatory policy boundaries for Internet companies are gradually clear, and normalized supervision is the main tone in the future. In the second half of the year, it is recommended to pay attention to the follow-up progress of the three regulatory directions, and further clarify the boundaries of policy supervision. The first is anti-monopoly supervision, focusing on the revision progress of the Anti-Monopoly Law and the implementation of relevant rules; the second is content supervision, the boundary of supervision has become clearer, and the focus will shift from formulation to implementation; the third is information security supervision , pay attention to the progress of negotiations between China and the United States on the audit papers of overseas companies.

The value pie is heavy on the Internet

According to the first quarterly report, Zhou Weiwen, Qiu Dongrong, Shi Bo and many other star fund managers have significantly increased their positions in Hong Kong stocks in the first quarter of this year. Specific to the individual stock level, the fund’s increase in the holdings of Meituan and Kuaishou is very obvious, and the quarterly changes in holdings have increased by 84.7194 million shares and 69.914 million shares respectively. Among them, Qiu Dongrong, the fund manager of the “Value School” fund manager, and Yuan Weide, the products under management of China Europe Fund, both increased their holdings of Meituan to the largest holding stock, and the positions were directly “full” to around 10%.

As of the end of the first quarter, the leading stocks of Zhonggeng Value and the No. 1 stock of Zhonggeng Value Quality managed by Qiu Dongrong were Meituan, accounting for 10.04% and 9.55% of the fund’s net value respectively; Yuan Weide managed China-Europe Diversified Value and China-Europe Emerging Value The largest holding stock is also Meituan, with positions of 11.06% and 10.27% respectively. In addition, Zhang Kun of E Fund Fund, Yang Ruiwen of Invesco Great Wall Fund, Hu Xinwei of China Universal Fund, and Lu Bin of HSBC Jintrust Fund have all opened new positions or increased positions in Meituan.

Qiu Dongrong expressed his concern for Hong Kong-listed Internet companies in the quarterly report. He believes that, first of all, the business of these companies is deeply embedded in the Chinese economy, and the core needs they face are constantly growing, such as entertainment, consumption, social networking, etc. At the same time, the monetization and realization capabilities of these companies continue to improve;

Second, regulatory policies constrain the excessive expansion of the industry and limit the capital expenditures of these companies, especially cross-sector and cross-industry capital expenditures. Build solid business barriers to continuously improve profitability and hematopoietic capacity;

Third, due to the fall in valuation, from expansion under the background of high valuation to contraction under the background of low valuation, leading companies have switched from large capital expenditures and investment cash outflows to positive operating cash flow, investment The rate of return is expected to increase significantly.

In a recent live broadcast, Qiu Dongrong even said that investing in Chinese Internet companies now is like investing in Amazon in 2003. He said that the best time to invest in the Internet in the United States is definitely not in the bubble, but after the bubble to decide who will be the winner in the future. Now the Chinese Internet is at such a moment, and it is not even possible to rule out the possibility of the birth of companies larger than those of the Internet companies in the United States.

“Now the portfolio is almost full, there are too many stocks to buy, and there is not enough cash.” Qiu Dongrong said that we must cherish the equity market at the current stage. A shares are now a systematic opportunity with structural risks, while the Hong Kong stock market is a systematic and strategic opportunity.

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