An advertisement board welcoming the listing of NetEase is seen outside the trading hall of Hong Kong Exchanges and Clearing Limited (HKEX) in Hong Kong, south China, June 11, 2020. (Xinhua/Wang Shen)
BEIJING, July 29 (Xinhua) -- China's Hong Kong-listed growth stocks, after undergoing the previous downward corrections, face greatly eased valuation pressures and remain one of the important options to invest in new economy-related companies in China, reported Xinhua-run Xinhua Finance citing publicly-offered fund managers on Thursday.
On Wednesday, Hong Kong stocks bade farewell to the previous declines and rebounded, with most of the tech stocks rallying and the Hang Seng Tech Index up as high as 3.1 percent from Tuesday.
For the H-share market, digestion of the valuation pressures means lower sensitivity towards the rises in risk free rate of return and under such circumstances, growth stocks will see notably alleviated crowded trade and hail a suitable timing for long-term investors to invest in them, said analysts with China Merchants Fund.
In spite of the recent fluctuations on H-share market, there are still lots of quality firms whose development are in line with the trend of the whole industries and over the long run, the hard times for H-shares are usually proved to be excellent chances for investors to hunt bargain, said Zhou Hanying, fund manager with Invesco Great Wall Fund Management Co., Ltd.
Currently, the cost performance ratio of new economy stocks such as those for the internet sector has been to some extent gratifying, according to Zhou.
In the past two years, numerous new consumption firms, new pharmaceutical firms and internet firms went public on Hong Kong stock market and gave explicitly rise to clustering of these new economy companies.
Statistics showed that there are year to date around 2,700 funds that can invest in H-shares, of which about 180 funds are purely H-share investing funds.
By the end of June, there were 25 funds that their H-share positions accounted for more than 90 percent of all their portfolios and some of them even scaled up their investment in H-shares in the second quarter.
As analysts with China Merchants Fund thought, the H-shares are still expected to fluctuate under influences from short-term factors, but in the long term, Hong Kong-listed Chinese firms boast advantages given the high certainty in their profitability and low valuation of their H-shares.
Investors can pay close attention to companies engaged in high-end manufacturing sector, emerging consumption sector, and offline consumption sector, internet giants and relatively scarce new economy giants that have finished secondary listing in Hong Kong as well, the China Merchants Fund analysts said. (Edited by Duan Jing with Xinhua Silk Road, duanjing@xinhua.org)
A single purchase
