China'S First Luxury Fund Unveiled &Nbsp, Winning The Luxury Of CPI.

"Every day is full of Swiss watches, champagne and Italy. leather shoes Container ships shuttle between Asia and Europe. Some analysts describe the world as a whole. Luxury goods The brand is the "China dream" mentality.

In July 8th, the first luxury goods fund in the country, the rich world's top consumer product equity fund, ended. As a result, China's luxury consumption is moving forward to "directly purchase luxury goods -- luxury investments." shares - the new era of trilogy for the luxury goods fund.

Luxury stock "most profitable"

According to Bloomberg statistics, as of June 21, 2011, the Dow Jones luxury index, which represents the trend of global luxury goods, closed at 1675.25 points, a record high. The Dow Jones luxury index has risen 41.5% in the past year, while the MSCI global index of the same period (by the Morgan Stanley Barnes company's investment global stock index) rose by only 6.69%, while the Shanghai and Shenzhen 300 index rose by only 4.62%. Netizens are laughing at it: "luxury gains have outperformed CPI." There is no doubt that luxury goods have become one of the "most profitable" varieties in the global capital market.

"Now for Chinese consumers, whether you are a supporter of LV or a loyal fan of Chanel, buy yourself some luxury stock and share the" China miracle ", which is a good investment channel. Wu Yu, general manager of China's personal banking investment strategy and loan product department, told China Economic Weekly. She believes that China's strong economic growth over the past decades has generated a large group of new rich classes, which has brought support to the purchase of luxury goods. As China's luxury consumption is entering the golden age, the unique asset field of luxury investment has begun to enter the Chinese perspective.

"As Buffett said, what investors like most is the kind of enterprise that has a long survival and strong competitive advantage. It is like a strong castle surrounded by a big moat, and there are fierce piranhas and crocodiles in the river." Wu Yu said that compared with low-end consumption, the investment value of luxury consumption is more obvious.

In 2010, the performance of luxury enterprises was outstanding. Such as Porsche and BMW, the P / E ratios in the past 12 months are about 9 times and 9.9 times respectively. LV and Rui group have 18 to 19 times earnings over the past 12 months.

The logic of luxury market is so simple that it is so simple. On the one hand, luxury goods market demand is strong, luxury goods may be the industry of "the worst money" in the current market; on the other hand, luxury goods have a very high moat and have achieved a high profit barrier. Wu Yuru is the analysis.

Public data show that English Garment Company's BRBY.LSE shares rose 88% in 2010. CFRVXHG.NY, a jewellery maker with famous brands Cartire and Van Cleef & Arpels, has also risen 48%.

COACH's (COH.NY) materials for China economic weekly show that COACH's share price has expanded by 2332% in the 11 years from October 2000 to June 2, 2011. It can be seen that luxury investment is indeed one of the best and is very eye-catching.

A new round of investment banquet?

"We believe that the consumption industry is a typical aperiodic industry compared with other industries, which is less affected by the fluctuation of the economic cycle and more stable. Secondly, in the field of consumption, because of the low elasticity of demand for high-end consumer prices and high barriers to industry, its investment prospects are better and its growth rate is faster. Under the guidance of global consumption upgrading, the luxury goods fund is expected to become an anti inflation pioneer. Li Jun, chief overseas investment analyst of Wells Fargo fund, told China Economic Weekly.
He believes that the rising purchasing power of emerging markets such as China and India is changing the market for new luxury consumers, and to a large extent, supporting the development space of the luxury goods industry. Overseas experience shows that when the per capita income exceeds 1500 dollars, the demand for luxury goods starts to start. When the economy continues to develop and the per capita GDP reaches US $2500, the consumption of luxury goods will increase dramatically, while the growth rate of luxury consumption is about two times that of GDP.

At present, China's per capita GDP has exceeded 3000 US dollars. GDP growth rate reached 9%~10%. This means that China is driving the global consumption demand for luxury goods into a stage of rapid expansion. With more and more luxury goods companies like PRADA moving towards the capital market, the top brands that emit historical "incense" have gradually formed an expanding investment "gold mine". "As a popular saying in investment circles: invest in what you consume. I think domestic investors may wish to share the global brand feast through the luxury fund and benefit from the upgrading of consumption in China. Li Jun said.

Whether luxury investment can become an anti inflation pioneer, the market will tell you the answer.