Three Reasons Lead To A-Share Diving Fund Managers Adjust Strategy

September 7, A-share diving. The Shanghai index fell 1.87%, the Shenzhen composite index fell 2.73%, and the index fell 3.33%.

Among them, A-share semiconductor plate fell sharply, the main net outflow of 2 billion. At the same time, tech shares fell by 50.2%. According to the shenwanyi industry index, electronics fell by 2.88%, communications by 1.59%, media by 1.54% and computers by 1.17%

In fact, there was a serious polarization in the market that day.

On the one hand, a number of low-priced stocks and small market value stocks soared. In the short trading day, the stock price of bio rose sharply from RMB 88.5/day to RMB 10.5/day. In addition, the top A shares have a large number of low-priced stocks with a share price below 10 yuan.

Consumer stocks, on the other hand, have tumbled. Early strong plate agriculture, forestry, animal husbandry and fishery, medicine and biology, food and beverage, etc. fell sharply. Pharmaceutical and biological plate suffered a heavy setback, Wanfu biological, Beida pharmaceutical industry close to the limit. The agricultural sector fell sharply, with new hope, Zhengbang technology and tianbang shares falling more than 9%.

Why fall?

In fact, this big drop surprised the market. A shares in the morning is still normal, but in the afternoon it plunges. And there is no obvious bad news.

In this regard, fund industry insiders believe that three major factors have led to A-share crash: first, external influence; second, high valuation; third, Sino US friction.

Yang Delong, chief economist of Qianhai open source fund, said that Shanghai and Shenzhen stock markets had a large adjustment on Monday, partly due to the drop in US stocks. "In view of the A-share valuations under the U.S. stock market before the sharp decline in the value of the A shares, the average has not been adjusted significantly before."

A large public offering fund manager also said, "the main reason for the sharp drop in A-shares is that the valuation of some industries is too high, some of them are damaged by the escalation of Sino US conflict, and the market is generally worried about the tightening of liquidity margin. At present, the overall market valuation and risk appetite are under pressure. However, the adjustment range will not be too large, the overall consolidation for a period of time. "

Fan Tingfang, a mixed fund manager in Haifutong's small and medium-sized stocks, believes that the market shock correction may be caused by the suppression of various factors, and the sharp drop of US stocks or the fuse. However, the fundamental factor is still the short-term dynamic adjustment under the "valuation scissors" within a share. Since the beginning of the year, the leading companies and big white horse stocks under A-share core assets have continued to rise, accumulating a large increase. The pressure of the plate with obvious early valuation expansion is relatively large. The stock prices of some leading sectors have been in a high position, and there is a natural demand for periodic correction. Since the second half of the year, there has been a further tightening of liquidity.

In addition, fan Tingfang pointed out that there are many uncertain factors in global politics, such as the increase of event disturbances in the peripheral market, the approaching of the US election, the determination of the Japanese Prime Minister. And on Friday, the US stock market fell sharply, and continued outflow of northward funds further intensified the impact on the weighted plate.

Adjust investment strategy

When the market shocks, fund managers are also adjusting their investment strategies.

"Our position is relatively low, consider a few days after the market adjustment in place, then some cycle stocks and technology stocks to do a balanced allocation." Zhao Lisong, chairman of shangdegu investment, said.

Li Kejie, general manager of Quanhong private equity fund, said: "most of the small market value, consumption and technology stocks have been frothy. Our position in about 70%, or adhere to the consistent operation: sell up buy down. Early up sell, down gradually buy back. "

And for the future market trend, fund managers basically maintain the judgment of shock, and will look for investment opportunities in this.

Xia Fengguang, manager of future star fund of private placement paipaipaipai.com, believes that the board represented by gem and consumer medicine is outstanding in the early stage. The recent adjustment is precisely the result of these better performing indexes leading the decline. "The possibility of market shock is relatively large, relatively speaking, undervalued will have a certain margin of safety."

According to Deng Yuxiang, director of Equity Investment Department of Furong fund, Sino US relations are still an important uncertainty factor affecting technology stocks. However, there are also positive factors in the near future: first, the policy support for the third generation semiconductor to be included in the national "14th five year plan" is increasing; second, the short-term adjustment of science and technology stocks represented by semiconductors has been nearly 30%, showing relative resilience in the market adjustment last week. It is expected that there will be some pressure from external influence in the short term, but in the medium and long term, the trend of domestic substitution and 5g innovation still exists. Some technology stocks have the cost performance ratio of valuation and performance, so it is not necessary to be too pessimistic.

"There is pressure to maintain the market in the short term. In the industry, pharmaceutical, technological, military and undervalued cycle leaders are our focus. " Deng said.

Zhang mengfa, general manager of Haokun investment, believes that the overall market in September should be the trend of first restraining and then rising, with structural market as the main factor.

Zhang mengfa is not optimistic about the current speculation of small market value stocks, that after short-term overcorrection, the market will still value investment as the main investment direction. "We should try to find the best cyclical stocks that have fallen, the core technology stocks that have been adjusted in place, and the film and television and tourism stocks that are expected to consume in October golden week."

Yuan Huaming, general manager of Huahui Chuangfu investment, believes that there is little possibility and space for the market to fall sharply. Instead, market adjustment provides investors with layout opportunities.

"At present, the market liquidity is sufficient and the market sentiment is positive. Investors can pay proper attention to the varieties that are driven by the industry and capital market policies and news in the near future. For the theme stocks and concept stocks which have a relatively large rise in the early stage, high valuation and lack of performance support, we need to be vigilant and avoid chasing high. " Yuan Huaming said.

Fan Tingfang pointed out: "overall, we hold a neutral defensive attitude in the short term, but we are not pessimistic in the medium and long term. Defense is to better attack."

Fan admitted that some high-quality companies with excessive valuations have also taken precautions recently to increase the defensive nature of the portfolio. However, the focus is still to find opportunities, select individual stocks from the perspective of profitability and growth space, and enhance the resilience of the portfolio.

"At present, our portfolio position is more flexible, and in the future, we will focus on looking for opportunities to fall out on the basis of holding the basic market." Fan Tingfang said.

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