Opinion | It’s not too late to invest in the Hang Seng Technology Index

The recent surge in Hong Kong stocks driven by the Internet sector should have exceeded many people’s expectations. The Hang Seng Index directly broke through 22,000 from more than 19,000 points.

Hong Kong stocks have always been a market for foreign investors to set prices. The expected trend of most investors for Hong Kong stocks is that in the context of US interest rate hikes and balance sheet reductions, foreign capital may continue to retreat, and it is difficult for Hong Kong stocks to have a big market.

But this kind of thinking is one-sided. Compared with the foreign investment environment, Hong Kong stocks should pay more attention to the opportunities of the Internet.

The Fed raises interest rates and shrinks its balance sheet, and the return of the dollar to the United States seems to be taken for granted. But why does the Fed raise interest rates and shrink its balance sheet, and the funds will definitely go away? This is actually a risk-reward ratio issue.

The Fed raises interest rates and shrinks its balance sheet, risk-free interest rates rise, and many bubbles are about to burst. Compared with most investment varieties in the world, it is a good investment choice to put money safely in the United States and earn interest, so funds choose to flow to the United States. But choices are relative, and funds will not remain indifferent if a better option is found.

The current Internet sector is such a relatively better investment opportunity with high odds and high odds.

After more than a year of decline, the Internet sector has no bubbles to speak of, but is always ready to bottom out.

I am in “How to view the current Hang Seng Technology Index? “The article mentioned that the biggest influencing factor for the Internet sector, that is, the policy attitude has changed.

“The official caliber has been changing since the beginning of the year.

For example, on January 19, 8 departments including the National Development and Reform Commission issued “Several Opinions on Promoting the Healthy and Sustainable Development of the Platform Economy”, focusing on: strengthening competition supervision and law enforcement in the whole chain; strengthening the responsibility of super-large Internet platforms; on March 16, the State Council Financial The committee meeting pointed out: “In terms of the platform economy, the rectification of large-scale platform companies should be promoted steadily and as soon as possible, and relevant departments need to set up traffic lights.” Normalize supervision and introduce specific measures to support the standardized and healthy development of the platform economy.”

It is not difficult to find that from “strengthening” and “strengthening”, to “setting traffic lights”, and now to “supporting” and “promoting”, the signals transmitted are more and more positive.

It can be said that under the background of the policy, the Internet may usher in a good investment opportunity. Although we have experienced some pains, the future may be a healthier development. After all, everyone’s life cannot be separated from the Internet at all. “

Internet giants such as Tencent, Ali, Meituan, and JD.com, which have fallen bruised in the last year or two, are undeniably still the most competitive Internet companies in China.

Unlike in the past, they have become cheaper. And the reason that makes them so cheap is gradually fading.

We can see that the game version number was reopened in April this year, and the second batch has been approved in June, that is, two days ago. It is not a simple talk, but a real change.

At the same time, Internet companies also pay more attention to the quality of profits, appropriately shrink their fronts, and cut off some bloated businesses. Similar to Pinduoduo’s year-on-year loss in the first quarter, its net profit reached 2.6 billion yuan; iQiyi achieved its first profit.

In the face of this series of changes, funds will not go for the sake of going, and will most likely choose to participate.

For example, many international institutions have increased their positions in Chinese Internet stocks in the first quarter of this year.

As of the first quarter, JPMorgan Chase increased its holdings in Baidu, iQiyi, Boss Zhipin, and Pinduoduo by a large percentage. Among them, Didi added the largest proportion of warehouses, with a year-on-year increase of 419.51%.

Bridgewater increased its holdings of Ali to 7.4805 million shares, with a market value of $814 million, ranking it as the sixth-largest stock. The company also increased its holdings of Pinduoduo by 2,277,500 shares, an increase of 85% to 4,939,400 shares, with a stock market value of US$198 million; Baidu, Bilibili, and NIO, a new energy vehicle stock, were also increased by Bridgewater. , Xiaopeng, ideal.

According to the position data disclosed by China Consumer Power Fund, a China stock fund under Fidelity International, as of the end of the first quarter, the largest, sixth and tenth largest stocks in this product were Tencent Holdings, Meituan, and JD.com respectively. The market capitalization of the positions is $402 million, $180 million, and $138 million, respectively. In the first quarter, the company increased its holdings in all of the above stocks.

In addition, among the top private equity companies in China, Jinglin Assets increased its holdings of NetEase and other stocks in the first quarter, and Gao Yi Assets increased its positions in Pinduoduo, ZTO Express, and Shell. The largest increase in its position is Shell. In the first quarter, Gao Yi Assets increased its holdings of this stock by 805,600 shares, with a stock market value of US$25.884 million, making it its third largest holding.

Some institutions bought the US stock Internet, while others bought the Hong Kong stock Internet. This is not a big problem, and the logic is the same. If you really have to choose, Hong Kong stocks are better. In the case of the Sino-US policy game, it is still a trend for Internet companies to return to Hong Kong to list. Most of the stocks of high-quality Internet companies are currently available in Hong Kong stocks.

The Internet sector of Hong Kong stocks is the largest capital pool in Hong Kong stocks. As long as it is attractive enough, there will be other funds to buy it even if foreign capital does not buy it. If the Internet sector revives, it will determine the strength and weakness of the overall Hong Kong stock market.

Foreign investors cannot bring Hong Kong stocks, but the Internet can.

Of course, there is no need to worry about not being able to get in the car. In the short term, we still cannot ignore the risks of the external macro environment (rising interest rates and shrinking balance sheet inflation), but at the same time, we must seize the opportunity of underestimation. Therefore, instead of betting on a certain Internet company, it is safer to choose to invest in the Hang Seng Technology Index, which is dominated by the Internet sector. The Hang Seng Technology ETF (513130), which is operated by the award-winning team of the passive fund Golden Bull, can be followed.

This article is reprinted from: https://news.futunn.com/post/16345602?src=3&report_type=market&report_id=207905&futusource=news_headline_list
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