The fund manager’s devotion to real consumption has stimulated the wealth growth of the founders of listed companies.
According to the latest data of Forbes, as of January 7, 2021, Zhong Xiaoxiao, the actual controller of Nongfu Shanquan and Wantai biology, has reached $92.5 billion, surpassing Warren Buffett. If we regard real estate stocks as a part of virtual economy based on the financial attributes of real estate, Zhong is close to the sum of personal wealth of Ma Huateng, Liu qiangdong and Wang Jianlin, the founders of three virtual listed companies.
“The keynote of the policy is still to guide funds into the real economy, and it is expected that more measures will be introduced to promote direct capital to the real economy in the future.” Liu Yanchun, star fund manager of A-share and research director of Jingshun Great Wall Fund with more than 50 billion funds under management, stressed this. This means that the growth of Zhong’s personal wealth, in fact, is also the fund manager’s compliance with policy changes, with the core stock pricing power, increase investment in the real economy leader, so that the wealth growth of such entity companies surpasses the virtual economy leader in the capital market.
Fund manager’s pricing power stimulates the rise of leading stock wealth
“We don’t produce water, we’re just nature’s porters.” Now it seems that Nongfu Shanquan is not only a “Porter”, but also a “money printer”. As of January 7, the wealth of Zhong Xiao, the actual controller of Nongfu Shanquan and Wantai biology, has reached 92.5 billion US dollars, surpassing the stock god Warren Buffet, and the value is roughly equal to the sum of the personal wealth of Ma Huateng, Liu qiangdong and Wang Jianlin.
According to wind data statistics, according to the positions of the top ten heavy position stocks disclosed by fund companies, the public offering funds hold 4.32 million shares of Wantai biology, and the public offering funds account for nearly 10% of the circulating share capital. With more and more new funds coming into the market with the help of new products of public funds, fund managers’ heavy positions in related stocks further stimulated the growth of stock price. This is the case of Wantai biology. In the four trading days of 2021, the stock price of Wantai biology has risen by 22%.
Nongfu Shanquan’s listing in Hong Kong stock market immediately attracted the attention of mainland public fund managers, especially the QDII fund, whose investment target is the Hong Kong stock market. Huang Fang, manager of QDII fund of Huaxia Greater China enterprise, pointed out that although Zhong’s recent IPOs in Hong Kong and China capital stock were highly sought after, he made full use of the advantages of QDII fund to participate in overseas IPO subscription. During the period, he received a number of new shares such as Nongfu Shanquan, Xiaopeng automobile and shell, which brought good benefits to the holders. “In line with the principle of prudent stock selection and active participation, we have carried out offshore Chinese capital stock innovation and increased the income of holders.” The fund manager said.
Huang Liang, the fund manager of Southern Hong Kong Growth Fund, also stressed in his quarterly report that many high-quality companies have recently landed on the Hong Kong market for IPO. Some of these target companies have long-term growth prospects and inject new vitality into the Hong Kong market. To achieve a comprehensive coverage of new IPO stocks, through in-depth research to screen positions of stocks, use in-depth research to better understand the business model of the industry and the company, and use the leading market database resources to test logical assumptions, based on which to obtain excess returns.
According to the above position operation information of the two leading fund companies in the north and the south, we can roughly see that Nongfu Shanquan and Wantai biology controlled by Zhong have become the hot cakes in the eyes of fund managers.
Is taking medicine and drinking water because of the style rotation of the stock market?
Is it because of the style rotation of the stock market that taking medicine and drinking water makes the listed companies controlled by Zhong Xiao rise rapidly and realize the wealth hegemony in a shares and Hong Kong shares?
“Mastering the pricing power of stocks is an important feature of the A-share market in 2019 and 2020. Stocks recognized by mainstream funds can offer high prices.” A special account investment manager in South China pointed out to the Chinese reporter of securities dealers that the outstanding listed companies in the A-share market in the past two years have fully reflected the advantages of funds in controlling the pricing power, and the IPO of some high-quality leading companies in A-shares and Hong Kong shares is bound to attract a large number of funds, which may be a long-term behavior.
The Chinese reporter of securities company also noticed that although the share price of Nongfu Shanquan has achieved a large increase in 2020, in the recent four trading days, the share price of Nongfu Shanquan has increased by nearly 18%. “Among them, a large number of subscription of public funds and fund managers’ recognition of relevant stocks play a great role.” The investment manager of the special account of the above Fund believes that considering that Nongfu Shanquan and Wantai biology are enterprises under the same actual controller, the two companies have some similarities in the degree of capital recognition.
However, with its two listed companies, Nongfu Shanquan and Wantai biology, Zhong has greatly surpassed the global stock god Warren Buffet, and is close to the total wealth of the well-known Ma Huateng, Wang Jianlin and Liu qiangdong. He still has a very high phenomenal characteristic. Some market participants previously commented that “this is the performance of wealth growth returning from the virtual economy to the real economy.”
As of January 7, 2020, the personal wealth of Tencent founder Ma Huateng is US $56.1 billion, that of Jingdong founder is US $21.9 billion, and that of Wanda founder Wang Jianlin is US $14.5 billion.
According to real-time data disclosed by Forbes, as of January 7, 2021, Buffett’s personal wealth was $86.2 billion, about $6 billion behind Zhong. In addition, Zhong’s personal wealth is $30 billion more than that of Huang Zheng, the second richest person in China, although pinduoduo controlled by Huang Zheng is also the core stock that Chinese fund managers are keen to invest in overseas.
Considering the financial characteristics of real estate stocks, market participants usually regard real estate stocks as a part of virtual economy. From this perspective, we can better understand the phenomenon that the total wealth of the founders of Tencent, Wanda and Jingdong is basically equal to that of Zhong.
Galaxy Securities also pointed out in a research report that it has counted the proportion of public offering base’s position in the real estate sector since Q1 2010, with an average of 4.7% and a median of 3.9%, which is at a low level in history. From the perspective of trend, the proportion of fund allocation to the real estate sector has declined for three consecutive quarters. Meanwhile, for two consecutive quarters, the proportion of fund allocation to the real estate sector deviates from the trend of the index. In 2020, the proportion of standard allocation in Q3 real estate sector will be reduced by 0.32% to 3.55% on a month on month basis. In 2020, Q3 fund’s allocation to the real estate sector is low, and the proportion of over allocation is – 0.8%, which is 0.2% lower than that of 2020q2, and has been low allocation for two consecutive quarters.
The above information further proves that institutional investors with public funds as the core will have a great influence on the wealth ranking of founders of listed companies by examining the value of related industries, position preference and pricing characteristics.
The rise of real economy stock is the keynote of policy
“The keynote of the policy is still to guide funds into the real economy, and it is expected that more measures will be introduced to promote direct capital to the real economy in the future.” Liu Yanchun, star fund manager of A-share and research director of Jingshun Great Wall Fund with more than 50 billion funds under management, stressed this.
How long Zhong’s personal wealth ranking can last is also a topic of concern in the market, especially in the context of the stock market style rotation, the city’s changing King flag has become a hot topic for some people to discuss. However, the Chinese reporter of the securities company has learned from interviews with some institutional figures that stocks with big consumption as the core will probably become the core direction of fund managers’ positions, no matter what Whether the short-term style of the market has changed.
According to the performance ranking of public fund managers according to wind data, the top performance of fund managers in the past five years are fund products with heavy positions and large consumption, especially pharmaceutical and food listed companies, which are the key for fund managers to obtain excess returns and overcome the trend of the market.
Tianfeng Securities believes that the characteristic of Nongfu Shanquan platform company is that it has strong single product operation ability, and the success of single product depends on the company’s innovation ability and the comprehensive ability of the management team.
The above securities analysts also pointed out that through the analysis, Tianfeng Securities believes that under the layout of the whole industry chain, the company has gradually formed all-round advantages in channels, brands and products, and the platform features are gradually emerging. Compared with comparable companies, strong brand, high profit and multiple categories are the main advantages of Nongfu Shanquan channel. Under the leadership of the excellent management team, the company’s future category richness and individual product contribution will continue to increase, promote the steady growth of performance, continuously improve the ceiling, and open up the company’s future growth space.
January 9, 2021