The recent meeting of the Political Bureau in the Communist Party of China (CPC) made it clear once again that it is necessary to speed up the formation of a new development pattern with domestic macro-cycle as the main body and domestic and international dual-cycle promoting each other. Therefore, the domestic economic cycle has gradually become a hot word in the capital market, and related concept stocks have also been sought after by funds. The public investors interviewed generally believe that rising to the "internal cycle" of national strategy will bring many investment clues.

"Top-down" push

Great adjustment of industrial structure

Cai Lin, manager of Qianhai United National Health Fund, bluntly said, "Internal circulation is to expand domestic demand and make domestic supply and demand form a self-circulation. Ordinary people spend money to buy products, enterprises spend money to buy raw materials, upstream enterprises pay wages to workers, and workers consume, which forms an internal cycle. "

In Wu Qingyu's view, internal circulation includes several aspects, among which "internal circulation of labor force" gives consideration to fairness and efficiency, "internal circulation of land" releases the vitality of consumer market, and "internal circulation of capital" optimizes industrial investment structure. "Technology internal circulation" builds a new development and growth pole, and "data internal circulation" creates new advantages for future development.

"that is, domestic production and marketing, it is necessary to strengthen the country's hard power and soft power, but also to expand the domestic demand market so that Chinese people can spend money and dare to spend money. In the short term, recycling depends on wealth redistribution, and in the long term, it depends on science and technology to become bigger and stronger. In addition, as the US election approaches, some politicians will not hesitate to challenge Sino-US relations to win votes for themselves. Under such a large external background, it is particularly important for us to promote the internal circular economy, which not only stimulates our own economic growth, but also enhances our economy's ability to resist external shocks. " Wu Qingyu said.

Lang Chengcheng, director of the research department of Furong Fund, believes that the concept of internal circulation is relative to "external circulation", which refers to international trade. In addition to labor, capital and land mentioned in the factor endowment theory, intangible soft production factors such as technology, human capital, research and development, information and management also have great influence on international trade. "We believe that in 2008, the structural adjustment or' internal circulation' brought about by China's financial austerity began. In the face of public health emergencies this year, finance was forced to make another effort. Confirming this strategy at this time may mean' top-down' to promote the major adjustment of industrial structure. "

Multi-mainline tapping investment opportunities

The fund managers interviewed said that the clarity of the strategy of "focusing on the domestic big cycle" and the follow-up policy orientation are expected to promote the development of related industries and provide clues for investment.

Wu Qingyu believes that "internal circulation" points out relevant investment opportunities in the following six directions. First, the internal circulation of consumption, that is, on the basis of the strategy of expanding domestic demand, to realize the quality and upgrading of consumption, including tax exemption, national tide, e-commerce, games and other sectors; The second is the internal circulation of science and technology, and the independent security in the short board of science and technology, including semiconductors, biomedicine and cloud computing. , can have a stronger explosive force; Third, the internal circulation of manufacturing industry, focusing on industrial upgrading and high-end manufacturing will bring about the rise of manufacturing ROE, such as new energy, military industry, robots, etc. Fourth, invest in internal circulation, "two new and one heavy" to expand effective domestic demand, including IDC in new infrastructure, industrial internet and building materials machinery in old infrastructure; Fifth, the internal circulation of services requires strengthening the development of modern service industry and improving the scale and profit rate of tertiary industry. The design section includes medical services, social services, property and express delivery. Sixth, financial internal circulation, that is, better service to the real economy. In investment practice, it can be chosen according to the prosperity of the industry and the matching degree of valuation.

Lang Chengcheng said that the current national strategy of "internal circulation" can not only reduce China's dependence on the external environment, but also maintain the stability of the domestic economy. More importantly, it is expected to promote the upgrading of domestic industries and gain a stronger voice in the international division of labor.

"Generally speaking, there is no very clear concept of internal circulation at present, but consumption and investment are the two main directions of internal circulation, and domestic substitution in the field of science and technology is the top priority of internal circulation." Cai Lin stressed.

This article is from China Fund.