Chinese companies that bet on energy reaping benefits
2022.12.30 07:35
Chinese companies that bet on energy reaping benefits
Budrigannews.com – A year that was difficult for many of their peers is being celebrated by Chinese fund managers who placed significant bets on energy companies.
By betting on energy stocks like CNOOC (NYSE:), Huang Hai, who manages three funds for Wanjia Asset Management, has significantly outperformed the market. Shaanxi Coal and Shenhua Energy in China.
With a return of 48.4%, his Wanjia Macro Timing Mixed Fund was the best-performing balanced fund this year. That contrasts with the blue-chip CSI300 Index’s loss of 22%.
On Wanjia’s website, Huang stated, “Instead of chasing hot stocks, we chose the carefully planned battle of contrarian investment.” We remain cautiously optimistic regarding the stock market in China, where structural opportunities abound, in the future.”
His fund increased exposure in the third quarter to consumer, finance, and construction stocks, which he claimed were undervalued, and he stated that upstream resources companies would continue to benefit from an ongoing rebalancing from growth to value.
Coal miners and oil and gas companies in China have benefited from this year’s rise in global energy prices, which was partly sparked by the conflict between Russia and Ukraine.
According to a ranking produced by Refinitiv Lipper, Zhang China was also the best-performing equity mutual fund manager this year due to its extensive exposure to the industry.
Zhang’s Yingda State-Claimed Undertaking Change Value Asset accomplished an arrival of 31% in 2022, a long ways in front of its nearby devotee with simply a 12% return.
Shenhua Energy, Shanxi Lu’an Environmental Energy, Guanghui Energy, and Shaanxi Coal are among the top 10 holdings in her fund.
However, Lipper’s ranking of China funds also demonstrated that stock selection was not necessary. As long as Chinese investors invest in the energy sector, a number of passive funds that facilitate global asset allocation beat active funds.
A 66% return was achieved by a Chinese index fund that tracked the Dow Jones U.S. Select Oil Exploration and Production Index.
Domestic investors received a return of 53% from the Lion Oil and Gas Energy Equity Fund, which is part of China’s outbound QDII program and invests in global energy funds.
Hwabao WP Technology Pioneer Mixed Fund, which lost 50% in 2022, and Fullgobal Innovation Trend Equity Fund, which lost 48%, were among the lowest-performing technology-focused Chinese mutual funds.
The impact of both global monetary tightening and heightened geopolitical tensions can be seen in the 31% decline in China’s tech-focused STAR Market and the nearly 30% decline in Hong Kong’s Tech Index.
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