"Fast Bull" For Two Consecutive Days: How Do Fund Managers Adjust Their Positions?

On July 15, there was a large correction in A-share market, which was two consecutive days of market correction. On the same day, the Shanghai stock index fell below the 3400 mark.

By the end of the day, the Shanghai index fell 1.56% to 3361.30, the Shenzhen composite index fell 1.87% and the gem index fell 1.6%.

On the same day, the transaction volume of the two cities exceeded 1.5 trillion yuan, and the turnover of the two cities exceeded 1.5 trillion yuan for 8 consecutive trading days and trillion yuan for 10 consecutive trading days.

It is worth noting that during the two consecutive days of correction, foreign capital, which has attracted much attention, has also continued to net outflow. On July 15, the net outflow of northward funds was 2.706 billion yuan; on the previous day, the net outflow was 17.384 billion yuan, which was the largest single day net outflow in the history of northward funds. Since July 1, the accumulated net inflow of northward funds has reached 45.277 billion yuan.

"The emergence of this round of adjustment, on the one hand, announced the end of the round of fast bull, on the other hand, it is also a reflection of some negative factors in the near future." Yang Delong, chief economist of Qianhai open source fund, said, "the adjustment provides an opportunity for investors who have been short in the early stage to increase their holdings."

Li Yinghong, chairman of Qianhai Longmen Asset Management Co., Ltd., also believes that the current A-share market has entered a state of horizontal adjustment after the "mad bull" since July. "This is a healthy adjustment, which is conducive to the return of the market to rationality."

Callback

A share callback, in the market is expected, but the two consecutive days of callback, but the market unexpected.

After all, before the "fast bull" turned back, as of July 13 and July 1, the Shanghai stock index, Shenzhen Composite Index and gem index of a shares had increased by 15.37%, 17.98% and 18.51%.

The A-share pullback on July 14 was not unexpected, with the Shanghai index down 0.83% to 3414.62 points, the Shenzhen composite index down 1.08% and the gem index down 1.06%.

However, when the three A-share indexes continued to fall by more than 1% on July 15, the market began to worry that the wind direction had changed.

"In the past two days, the A-share market has seen a certain correction from the previous surge. The main reasons are: on the one hand, the recent market growth is relatively fast, and some profit margins are short-term safe; on the other hand, there are new trends in overseas trade frictions, which also triggered emotional shocks and the downward trend of the communications and electronics sector." Zhang Ge, a senior wealth analyst, said.

Zhuang Hongdong, chairman of cheese fund, believes that the market correction is the result of many factors, such as capital outflow and market sentiment. "In recent years, with the rapid rise of the market, liquor, medicine, securities companies, chips, 5g and other sectors have performed in turn, and some of them have higher valuations and accumulated greater risks. Therefore, it is highly probable that the market will have a mean return."

"In recent days, there has been a correction in the market, which is mainly due to the excessive increase in the early stage and the accumulation of a large number of profit margins. At the end of the week, the regulatory authorities have taken a stand-by attitude to strictly control the over-the-counter capital allocation, and some prudent funds have been cashed out in the short-term for the sake of safety." Haokun Shengfa investment chairman Zhang mengfa said.

Xia Fengjing, the future star fund manager of private placement paipaipaipai.com, also pointed out that the shock and callback after a short-term rapid rise is normal, and the withdrawal of northbound funds and the adjustment of overseas technology stocks are the incentives. Since the beginning of the month, some views have paid more attention to the capital and the strong industries. However, the short-term strength does not necessarily represent a new round of bull market. We should guard against the violent shocks after the major indexes turn to top.

"At present, except for a small number of industries, most of them are in the peak range of historical valuation. Although the capital has good support to the market, it has fully reflected this expectation in the trend. There are insufficient expectations for the performance decline of listed companies, the downturn of macro-economy, and the variables of overseas environment." Summer scenery said.

It is worth noting that in this callback, technology stocks fell significantly, while consumer stocks were the top gainers. On July 15, concepts such as semiconductors and communication equipment ranked first. The consumption of liquor, motorcycle and food ranked first.

"Consumer stocks with performance support maintained a relatively strong performance in the market shock, while technology stocks had a larger adjustment." Yang Delong, chief economist of Qianhai open source fund, said, "there are still a lot of opportunities in the future, but some technology stocks and securities companies that have risen too much may face short-term adjustment."

Differences in position adjustment

"In the callback, fund managers generally avoid short-term adjustment by adjusting their positions. In particular, some high-tech stocks take profits first. On the other hand, the funds with lower early positions may also take advantage of this adjustment and increase their positions to seize the next market opportunity. " Yang Delong said.

In the callback, some fund managers adjusted their positions.

"For those stocks with good early growth, we adjusted our positions appropriately for the purpose of risk control. At the same time, we should firmly believe in industries with reasonable valuation such as bancassurance, real estate and household appliances, and gradually increase the position of individual stocks with larger margin of safety. " Zhuang Hongdong said.

Zhuang Hongdong suggested, "investors should not judge the timing of admission based on the market trend. Or should we start from the fundamentals of individual stocks, choose enterprises with increasing intrinsic value and large margin of safety, and develop good investment habits of long-term tracking and holding. "

A private fund source pointed out, "our current round of rise is mainly to adjust the position. We think that the valuation of medicine and liquor is too exaggerated. We sold a part of it, and we also increased the position of household appliances and other stocks."

"We keep about 70% of our position for a long time and keep 30% cash so that we can add bullets when we fall." Said the private equity source.

"I'll make some minor adjustments, such as buying the plates seriously affected by the epidemic situation." When Hong Quan or private equity fund managers continue to buy up, "Li Kejie said

Li Kejie suggested, "at this time, if the short position can be considered to make up for some stocks that haven't risen much, but it's not suitable to catch up. After this adjustment and consolidation, the market should rise again. "

"In recent days, the market has a correction after a wave of gains. We cleared positions on Friday." Zhang said.

Some fund managers have not been affected by this wave of correction.

"We control positions, select stocks as the main strategy, try to grasp the valuation and growth of the two main lines, desalination index impact." Summer scenery said.

"Our allocation is carried out in a long logical way, and the basic positions and positions will not be adjusted too much." Li Yinghong also said.

Li Yinghong predicted that the future market will maintain a mild upward trend of slow bull, and the "mad cow" market rate will probably not appear again. It is suggested that investors should pay close attention to the investment opportunities of large consumption sectors, including medicine, online games, online education, online entertainment, tax-free concept, etc.

Zhang Ting believes that from the general direction, the "weak recovery of earnings + loose liquidity + incremental capital inflow" in the second half of the year will continue, and the general direction of the A-share market will still rise.

"The market style will shift from the extreme bias of the first half of the year to the gradual convergence of the style. Cyclical finance will also have certain investment opportunities, but it is difficult to go up sharply. It is more about the valuation repair of leading stocks. However, from the perspective of large cycle, science and technology and consumption are still the main investment direction. From the semi annual performance forecast, the profit of science and technology consumption still has relative advantages 。” Zhang Ting said.

"Investors need to examine their own market style configuration. If the technology growth style position is too high, they can transfer part of their positions to the value blue chip to balance the position style." Zhang Ting said.