Disclaimer: The views of the author do not constitute direct investment advice. Fund investments should be made according to the principle of sales suitability, choosing products appropriate for individual investors at suitable times. Investors should understand their own risk tolerance and the risk-return characteristics of fund products, and improve asset allocation based on market conditions.
It is difficult to say that real estate adjustment policies will ease, despite attempts by Zhongshan and Wuhu to save the market, both have come to nothing. Major real estate developers have finally broken the deadlock and returned to price cuts and promotions. In the case of frequent local government adjustments being aborted, Chengdu fund account opening, price cuts and self-rescue are the best choice for developers.
However, property stocks in the Year of the Dragon have welcomed a wonderful spring. According to data statistics from Zolon Fund Research Center, as of February 17, the average increase in the real estate sector since the beginning of the year has been 12.59%, surpassing the overall market increase of 8.64%, ranking fourth in the Shenwan Level One Industry Increase Ranking. During this period, the trading volume reached 189.097 billion yuan, with a total trading volume of 27.238 billion shares.
Although property stocks have consistently been looked down upon, star fund manager Wang Yawei has always been very fond of them, firmly bullish on property stocks. The 2011 Q4 fund report shows that the two funds managed by Wang Yawei, ChinaAMC Large Cap and ChinaAMC Strategy, still have real estate as their top industry, holding 17.26% and 15.34%, respectively.
Zolon Fund Research Center's statistics on the top 10 circulating shareholders of A-shares found that the ChinaAMC Large Cap managed by Wang Yawei holds positions in 9 real estate stocks, namely Shache Share, Suning Global, Cinda Real Estate, Shenzhen Tianjian, Zhangjiang Hi-Tech, Shanghai Shiyi Development, Beijing Investment YinTai, Wantong Real Estate, and Guanghua Holding. Among these, three have exceeded the average increase, with Shache Share showing the largest increase.
The rebound in property stocks has also helped maintain the stable performance of ChinaAMC Large Cap. According to data from Zolon Fund Research Center, as of February 17, ChinaAMC Large Cap increased by 4.06%, ranking 93/468 in its category. Among the 55 stocks held by ChinaAMC Large Cap, the main sectors include real estate, pharmaceuticals and biotechnology, chemicals, and catering and tourism. It can be seen that although Wang Yawei favors property stocks, he remains cautiously optimistic about the trend of A-shares, adopting a more prudent operating style.
Stock Code Stock Name Increase (%)
000014.SZ Shache Share 21.8367
000718.SZ Suning Global 14.8855
600657.SH Cinda Real Estate 12.8686
000090.SZ Shenzhen Tianjian 11.6788
600895.SH Zhangjiang Hi-Tech 11.1929
600748.SH Shanghai Shiyi Development 10.3516
600683.SH Beijing Investment YinTai 8.9552
600246.SH Wantong Real Estate 8.75
000546.SZ Guanghua Holding 7.0707
Data Source: Zolon Fund Research Center
Statistical Date: January 1 to February 17
Not only does Wang Yawei see value in property stocks, but with the rebound in property stocks, many fund managers who were previously bearish have joined the bullish camp, starting to buy heavily in the last quarter of 2011, betting big on a real estate recovery. Among them, ChinaAMC Fund Management Company increased its holdings in property stocks the most, with its "ChinaAMC Environmental Protection New Energy" increasing its property stock holdings by nearly 38% compared to the end of the third quarter of last year; ICBC Credit Suisse China Advantage had a real estate allocation ratio of up to 55.48% at the end of the fourth quarter of last year.
Analyst Xu Liping from Zolon Fund Research Center believes that in 2012, the discount幅度 offered by some developers will be relatively large, leading to a phase-based increase in transaction volumes. Moreover, expectations of another reserve requirement ratio cut, relaxation of mortgage rates by major banks, and an upward adjustment of ordinary housing standards have rapidly increased, suggesting that the property stock market may make a comeback.