On the occasion of the New Year, on behalf of Shanghai Mingyu Asset Management Co., Ltd., I would like to wish the readers of China Fund News a happy new year, good luck, and great performance!
"Although Zhou is an old country, its destiny is new." 2020 is a year when the per capita GDP exceeds 10,000 US dollars, the two centenary goals are connected, and the development model fully shifts to consumption and innovation!
The investment trend closely follows the pulse of the times, and investment in the New Year brings a new atmosphere. Looking around the international environment, we are facing major changes unseen in a century. Populism is on the rise and anti-globalization is on the rise. Domestically, we are facing an old age before we get rich and an investment-driven growth model that is unsustainable. To overcome many challenges at home and abroad and achieve the great rejuvenation of the Chinese nation, we need to get rid of the Thucydides Trap and cross the middle-income trap. The most effective response and way to achieve this is the national innovation strategy. We at Mingyu Asset have always attached great importance to the investment opportunities in technology stocks and devoted ourselves to them. In this new era, we can not only contribute to the country's progress but also achieve wealth appreciation by taking advantage of the country's booming trend. We are even lucky!
The triple logic of this round of technology stock market. From the perspective of national strategy, in the process of China's economy switching from focusing on growth to focusing on quality, the science and technology industry supported by the "engineer dividend" shoulders the long-term mission of upgrading the national economic structure and surmounting the middle-income trap; from the perspective of the industrial cycle, Since the mobile Internet wave reached its peak, starting in 2019, the Internet of Everything revolution led by 5G has opened a new round of technology cycle. The innovation of consumer electronics products, the explosion of data traffic, and the large-scale application of artificial intelligence will bring us a series of investment opportunities; from the perspective of domestic substitution, the essence of the United States’ “entity list” system for Chinese companies is The technology embargo has brought hundreds of billions to trillions of effective demand to domestic technology companies, which will continuously translate into unexpected revenue and profits for Chinese technology companies.
In the short term, the performance of many leading technology companies in their 2019 annual reports exceeded expectations. The next quarterly report will have a larger area of ??good news for technology stocks. The triple logic of the technology industry will continue to increase future performance. Provide strong power. Good revenue growth and larger-than-expected profits are the strong backing for R&D investment. In 2018, China's R&D investment increased by 13% to 1.97 trillion yuan. There are 36 listed technology companies with R&D expenses exceeding 1 billion. In 2020, R&D investment will be even higher. It is considerable that the speed of domestic technological progress will be faster, and better technology will create more demand. Positive feedback for the accelerated development of China's technology industry has been formed.
As a professional investment institution, what we need is to conduct in-depth research on the industry, closely track technology development and industry company trends, and in the era of technological innovation, grasp the ups and downs of the technological wave, and find and identify the real Growth dark horses and technology kings will make dynamic adjustments to their portfolios to bring investors steady and sustained investment returns.
I wish everyone can enjoy the technology bull market in this technology spring!
(Personal profile: Zhang Xiaohua, partner and general manager of Mingyu Asset Management. Master of Finance from Peking University China Economic Research Center. Ten years of self-operated experience in securities firms. He has served as investment manager and deputy general manager of the self-operated department of Everbright Securities. Manager, general manager and other positions, with a deep understanding and rich experience in stock investment targeting absolute returns; three years of insurance fund investment experience, successively served as deputy general manager of the entrusted investment management department of CPIC Life Asset Management Center and general manager of the fourth department of Yangtze Pension Investment , familiar with the actual operation of major asset allocation, secondary market investment, risk control and other aspects of insurance and annuity funds.