HoonSmart.com>> Guru sees long-term growth prospects for China’s economy Following the 5-year strategic plan, the state organizes short-term impacts. “MFC Asset Management” indicates that Chinese stocks have corrected. Press the share price is not expensive. The fundamentals have not changed. Expect outstanding company profit growth Opportunity to invest in Chinese stocks through the MECHEVO fund, focusing on 5 themes to invest in businesses, benefiting from long-term growth of economic and social development.
Dr. Aksornsri Panichsas, Chinese economic expert, lecturer at the Faculty of Economics Thammasat University Said at the webinar on the topic “Looking at the Dragon Dan’s Equity Fund. How to invest with MCHEVO Fund” organized by MFC Asset Management (MFC) that the overall long-term Chinese economy still has opportunities to grow. The new economic model is a dual cycle economy (Dual Circulation Model) to reduce dependence on the world. driven by domestic consumption As reflected in China’s 14th Five-Year Plan, it will guide the economy forward after the Covid-19 era, which places more emphasis on technology and innovation.
China’s new development plan will not focus on growth. but focusing on security in 3 areas, namely public health security food security and energy security Aiming for the Clean Phangnga While the Chinese economy is the only country in the world that has experienced economic expansion in the past year. and continued into the first quarter of 2021, a growth of 18.3%, and in the second quarter of 2021, a growth of 7.9%, in which the overall consumption, exports, and manufacturing of China continued to grow well.
“China doesn’t focus on GDP growth, but it’s growing, focusing on employment. make people in the country have jobs have income and consumption which is driven by this Therefore, I want to be confident that China must look at the long term. according to the strategic plan Despite the organization of the government But the big picture believes that China will keep going, running, ready to run,” said Dr. Aksornsri.
However, China is focused on stable growth. So came out to control the rules that affect some businesses, such as technology companies and, most recently, tutoring schools.
Dr. Aksornsri said that for businesses that may have to be careful that the government may come in for more control, they are: 1. Business related to security. Sensitive Data Like DIDI, it’s not just a ride-hailing app, but a large amount of user data. Travel map information, which the IPO abroad is afraid that foreigners will invade the information
2. Businesses that are prone to overproduction in some businesses, such as solar cells in the past, and 3. Businesses related to stability, such as finance and innovation, may have some slowdown. for economic and social development cut off the power from the wind Manage for something better, like a cram school. which is already taught in schools But if the university If it’s Edutec making the Chinese education system more efficient There is technology to help teaching and learning. China supports it.
Mr. Chaonkorn Chotibun, Head of Investment Strategy, MFC Asset Management, said that the issue of government control over China’s business is seen as a short-term negative factor. while China’s growth is higher than other countries Profit growth of listed companies in 2022 is expected to grow 16.01% in 2023, grow 15.11%, higher than other countries. Most of them are around 10%, while the current share price has dropped to an affordable level. The fundamentals have not changed. Therefore, it is seen as an opportunity for long-term investment and growing together with China.
MFC Asset Management Co., Ltd. Presenting the MFC China Evolution Fund or MCHEVO, available for sale from 2-10 Aug. 21, focusing on businesses that benefit from the policy support of the Chinese government. For example, the “Made In China 2025” policy that will transform the Chinese economic structure towards a “New Economy” focusing on innovation and technology, the “Dual Circulation” policy, the 5-year China Development Plan (No. 14), the “2035 Vision Plan”. ”, and “Healthy China 2030”, and was driven by higher average age demographic factors in China. where the middle class has higher incomes and the need for a better quality of life
As for investment goals, MCHEVO will focus on investing in stocks with above-average growth potential in 5 investment themes that benefit from the socio-economic changes of the People’s Republic of China: consumer stocks, technology stocks, and stocks. Auto Industry, Clean Energy and Electric Vehicle Stocks, Medical and Healthcare Innovation Stocks By investing through two master funds with active management (Active), which are 1.Global X China Innovator Active ETF, a mutual fund ETF and 2. T. Rowe Price China Evolution Equity Fund.
“In the past, investors sold their shares without looking at the fundamentals. The recent decline in China’s stock markets has resulted in a 35% upside in the portfolio’s share price versus the Bloomberg target price, while its portfolio P/E is 34 times. very high because it is a growth stock As for earnings growth of 34.5%, PEG is 1x, it’s relatively cheap for a growth stock,” said Chaonkorn.
In terms of yield, MCHEVO’s 12-month mock portfolio is 85.3%, while the MSCI ALL CHINA TRI index is only 38.7%, which is 40% better than the fund’s 17-month return, 115.3%. MSCI ALL CHINA TRI was 31.7%, the fund outperformed 80%, while its portfolio volatility was 23.6%. The index was 22.8%, a slight increase but the yield was much higher. The highest loss is about 20%, less than 25%, which is close to the market.
“Even if it’s a return from the past But we believe that the skill of the fund manager will be able to outperform the return. Mother will not be 100% positive as before. But China is stable and sustainable, in which 1 year of covid-19 China is the first country in the world to recover. Stocks rose sharply and there were economic stimulus policies from many countries. stocks up around the world This makes Chinese stocks gain strong benefits as well,” said Mr. Chaonkorn.
However, although the growth of the Chinese stock market may not be as high as in the past. but China is stable Sustainable and believe that the ability of the fund manager to work for the Outperform Fund
“We try to mix the portfolio’s portfolio so that the fund’s risk level is not too high. Diversified investments in medium, small and large equities, covering A-Share, H-Share, ADR and with no higher risk than the market. In addition, the highlight of the aggressive management fund Portfolio can be adjusted according to market conditions,” said Mr. Chawakorn.
Dr. Chanwut Rungsawaengmanoon, FRM Assistant Managing Director foreign fund MFC Asset Management said that the fund has risk management by placing its investment proportions so that it does not fluctuate more than the target set. medium and small through the two main funds
“Looking downside from here is limited. From talking to long-term investors, no matter what happens to China in the short term But in the long run, China won’t change upside. Chinese stocks opened more as stock prices dropped on concerns of Chinese authorities. for the country to have a stable growth stable,” said Dr. Chanwut.
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MFC sees “Chinese stocks” adjust their investment base, sending MCHEVO fund to focus on 5 rising star businesses
