Highlights of the brokerage morning meeting | Active equity funds increase positions in science and technology growth, improving communication congestion levels
24/01/2025
GMT Eight
The market surged yesterday and then fell back, with mixed movements in the three major indexes. The total turnover of the Shanghai and Shenzhen stock markets was 1.36 trillion yuan for the whole day, an increase of 219.4 billion yuan from the previous trading day. On the market, the hotspots were chaotic, with more stocks falling than rising, and over 2,700 stocks in the entire market declining. In terms of sectors, insurance, banking, intelligent AI, and agriculture sectors led the gains, while AI glasses, PCB concepts, e-commerce, and automobile sectors led the declines. At the close of trading yesterday, the Shanghai Composite Index rose by 0.51%, the Shenzhen Component Index fell by 0.49%, and the ChiNext Index fell by 0.37%.
At today's morning meeting of securities firms, China Securities Co., Ltd. pointed out that actively managed equity funds increased their holdings in science and technology growth, and the congestion in the communication sector improved; Zhongtai believes that in the short term, attention can be focused on the recovery pulse of cyclical goods, while in the medium term, attention can continue to be paid to industry alphas; Huatai stated that policy incentives will help boost the end-of-year sprint, and the automotive sector is expected to operate at a high level.
China Securities Co., Ltd.: Actively managed equity funds increase holdings in science and technology growth, improving congestion in communication
China Securities Co., Ltd. stated that in the fourth quarter of 2024, the stock position of actively managed equity funds reached 83.4%, a decrease of 0.2 percentage points from the previous quarter. In an environment where both liquidity and market sentiment are improving, actively managed equity funds increased their allocation to growth styles (+3.0%) and particularly to the science and technology innovation board sector (+2.5%).
In terms of industry allocation, industries with increased allocation mainly include electronics, banks, power equipment, and automobiles; industries with high congestion mainly include power equipment, household appliances, electronics, and communications, but the communication industry's congestion showed significant improvement in the fourth quarter.
Zhongtai: Short-term focus can be on the recovery pulse of cyclical goods, and in the medium term, attention can continue on industry alphas
Zhongtai pointed out that in the short term, attention can be focused on the recovery pulse of cyclical goods, and in the medium term, attention can continue on industry alphas. From the perspective of calendar effects, February is the core time of spring agitation, and cyclical goods such as chemicals, steel, agriculture, forestry, animal husbandry, fisheries, and building materials have historically high win rates and high odds. In the short term, attention can be paid to the pulse-style recovery opportunities in these industries. It needs to be noted that for industries with historically favorable performance in February, there will be a very noticeable callback in subsequent win rates and odds, with the decline ranking equally high. The reason is that economic data and financial reports for March will be released in concentration, and cyclical industries will face tests of valuation and performance matching.
Huatai: Policy incentives help boost end-of-year sprint, automotive sector is expected to operate at a high level
Huatai stated that in the fourth quarter of 2024, the policy incentive for replacing old cars with new ones combined with end-of-year volume surge, and the consumer market for cars continued to heat up - a total of 2.92 million vehicles applied for scrapping updates, with 1.79 million applications in the fourth quarter, an increase of 76% quarter-on-quarter; retail sales also increased by 27% quarter-on-quarter to 7.36 million vehicles, potentially driving rapid revenue and profit growth for the passenger vehicle sector in the fourth quarter. The subsidy for replacing old cars with new ones will continue in 2025, and the scope of scrapping renewal subsidies will be further expanded, potentially leading to increased demand.
This article is reprinted from "Cailianshe", GMTEight editor: Liu Xuan.