The buying time of China Concept Internet Fund generally stipulates that at 15 o'clock on the fund trading day, it is a subscription on the same day, and if it exceeds 15 o'clock, it will be considered a subscription on the next trading day; the fund share confirmation time is generally T+2 trading days, and the fund shares can be queried.
It should be noted that the trading hours of the fund are the trading hours of stocks, which are from 9:30 am to 3:00 pm every day.
The term "Chinese concept stocks" has slowly evolved over the past few decades.
The current main usage refers to: Chinese companies going public on stock markets other than A-shares.
So what is "China Concept Internet"?
Many of the Chinese concept stocks are Internet companies.
For example, Alibaba, Tencent, Meituan, etc.
Isolate the Internet companies among the Chinese concept stocks and create an index, called the Internet Index.
China Internet Index, there are a bunch of them.
I don’t know whether it’s free to compile the index or for some other reason. China Securities Index Company has launched five Internet-related indexes.
1. What is China Concept Internet?
This concept can be simply divided into two parts: central concept and interconnection.
Zhonggai actually means Chinese concept stocks.
Mainland companies have gone public in Hong Kong and the United States. To local investors, these companies are "Chinese concepts."
Internet refers to Internet companies, such as the well-known Tencent, Meituan, and Alibaba.
The two are combined into one, which is to select 50 Internet companies from Chinese concept stocks to form a new index. This index is China Internet 50.
Fund companies saw the profits and issued funds that tracked this index, which is what we usually call "China Internet".
2. China Concept Internet Index holdings China Concept Internet should be composed of the stocks of 50 Chinese Internet companies listed overseas.
The top ten holdings account for about 90%, namely Tencent, Alibaba, Meituan, Pinduoduo, Baidu, JD.com, Kuaishou, NetEase, Xiaomi, and TAL.
The holding limit for a single stock of China Internet is 30%, of which Tencent and Alibaba each account for about 30%, and the two together account for about 60%.
For ordinary investors, it is particularly troublesome to directly buy the stocks of Internet giants such as Tencent and Alibaba.
U.S. stock accounts involve exchange and deposit.
The minimum asset requirement for Southbound Trading is RMB 500,000.
China Concept Internet has become a cost-effective choice for buying leading Internet companies with one click.
3. How to value?
The valuation of Internet companies has always been a controversial area.
PE?
Except for Tencent and Alibaba, most companies are losing money and cannot be estimated.
PB?
Obviously not suitable for Internet companies.
Considering that Tencent and Alibaba together account for 60% of the index, can we use the valuations of these two companies to represent the valuation of the entire index?
Industry leaders generally have pricing power.
If Maotai rises, Xiaopiao Liquor will also have the effect of making up for the rise. I think this method has certain reference value.
The probability that Internet companies will maintain a growth rate of 20% in the future is relatively high, and the corresponding reasonable price-to-earnings ratio is about 25 times.
The underestimation line is 17.5 times and the overestimation line is 32.5 times.
Tencent's current P/E ratio is 30.75 times, and Alibaba's P/E ratio is 25.32 times, which means that the combined PE of the two is currently 28.03 times, (30.75+25.32)/2=28.03.
From this perspective, despite the continuous sharp decline, the current valuation of Zhonggai Internet is still at a moderately low valuation.
However, considering the rapid growth of Internet companies, it is sometimes difficult to fall to an undervalued position, because the rapid growth of profits can absorb part of the valuation. This needs to be considered based on the actual situation.