Gong Fangxiong Said A Shares Should Be Optimistic About The Three Industry.

The 2015 Private Equity Investment Summit hosted by Yixin wealth was held in Shenzhen recently. Morgan, managing director of Asia Pacific region, JP P. P. Gong Fangxiong, said at the meeting that the A shares were so cheap that there was no reason for that. They were optimistic about the three major industries of China's future financial innovative services, medical health and TMT (technology, media and communications).

Gong Fangxiong revealed that some time ago, the mainland stock market plummeted.

When they fled from the A shares, there are many foreign mature institutions in Hongkong, but investors are secretly collecting these blue chips, because such valuations that can only be achieved in an irrational state can not be met, and will rise over time.

Gong Fangxiong said, A shares Real Investors in the primary market, the two tier market less real investors, mainly speculative customers, all want to make quick money.

The real investors should be very aware of the listed companies, understand the industry in which the listed companies are very well, and look at the stock valuation.

With investors' judgement on future growth and value realization of listed companies, it is called investors. Otherwise, they are called speculators.

Gong Fangxiong said that the overall price earnings ratio of Hong Kong stocks is 8 times ~10 times, and that of A shares is about 10 times ~12 times, and that of the United States is about 17 times.

But the US's economic growth is about 2%, and China's economic growth is even worse, with nominal growth of about 5%.

Under such circumstances, Gong Fangxiong believes that A shares are so cheap that there is no reason, especially for some blue chip companies with a P / E ratio of only 4 times ~5 times, but the dividend payout rate has reached 6%~7%.

Gong Fangxiong introduced that Buffett had an investment rule. If a stock price to earnings ratio is lower than the dividend yield, then don't want to buy it with your eyes closed.

"Now

Many blue chips have a dividend yield of 6%~7%, which is already 4~5 times higher than the P / E ratio.

Gong Fangxiong said that these blue chip stocks with lower price earnings ratio and lower dividend yield have clearly met Buffett's iron rule of investment.

Optimistic about the three industries

For the future investment field, Gong Fangxiong introduced China's future financial innovation services, medical health and TMT three industries.

"Of course, the most important thing for China to get out of the middle-income trap is to increase labor productivity, which is also a key factor for many countries to enter the middle-income trap."

Gong Fangxiong said that when a country develops into the middle income stage, all kinds of costs will rise, but if the cost goes up and the labor productivity can not be raised, then it will die.

The improvement of labor productivity depends on the innovation of business mode and technology.

"China will shift from extensive growth to intensive growth. In the future, we must pay attention to innovation and creation, including product innovation, technological innovation and business mode innovation."

Gong Fangxiong said that only these can enhance labor productivity, drive China's sustained economic growth, and get out of the middle-income trap.

Gong Fangxiong said, the financial sector and the macroeconomic correlation is the most closely linked, is also a foreign sector investors have been more optimistic about the plate, in the A share bottom, foreign investors are also copied financial sector.

Taking the insurance industry as an example, China's insurance industry has exceeded 11 trillion yuan in assets at present, but China's gross domestic product (GDP) has exceeded 60 trillion yuan, while the assets of the US insurance industry in the same period and the size of the US economy are 17 trillion and 18 trillion US dollars respectively.

"This means that the penetration rate of China's insurance industry is very low, and there is still much room for development in this industry."

Gong Fangxiong said that if anyone asked whether there is an industry in the future that has the same huge space as the real estate in China decades ago, the answer is China's big health and medical industry.

At present, the proportion of big health and medical industry in China's GDP is about 3%~4%, while that of the United States has reached 17%~18%.

More than ten years ago, China's real estate industry accounted for GDP, that is, 3%~4%. Now the ratio of China's real estate industry to GDP has risen to 14%.

Coupled with the aging of China's population and the increase of residents' income, there will be more and more support for health. The proportion of GDP in the big health care industry will be around 15%.