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Grasp the "core values" of the machinery industry, the first batch of machinery ETFs will be issued soon

Date:2021-04-06   Click:33  

In the past two years, A-shares out of the structural market, with strong investment and research capabilities, public fund performance rising across the board. With the concept of "stock speculation is better than buying funds" becoming more and more popular, the market is not short of performance funds to investors to bring real rich returns. It is reported that wells-off China Securities sub-machinery and equipment industry theme ETF (field abbreviation: mechanical ETF, fund code: 159886) will be issued on March 22.

Machinery and equipment is the capital of the country, but also an "investment rich mine." Subdivide the machinery and equipment industry theme index (000812. CSI), for example, has a long-term performance that can be circled. Since december 31, 2004, the index has risen 780 per cent, while the Shanghai index has risen 182 per cent and the CSI 300 has gained 445 per cent. From the historical data, in the market rise stage, the CSI sub-sector machinery and equipment industry theme index upward elasticity is greater.

As the first batch of mechanical equipment ETFs in the whole market, the mechanical ETF tracks the CSI Subdivision Machinery Index. It is worth noting that the mechanical ETF does not only cover the narrow sense of the "machinery stock", the fund also covers energy storage equipment, wind power equipment, photovoltaic equipment, IT services, metal new materials and other emerging growth industries, as well as construction machinery, home appliances parts, railway equipment, shipbuilding, machinery infrastructure and other traditional manufacturing sectors, both pro-cyclical and emerging growth. On each stock, the mechanical ETF selects the larger and more liquid company stock in the listed company to form a sample stock, with 50 constituent shares, preferably Ningde era, Longji shares, Sany Heavy Industries, Weichai Power, Yiwei lithium energy, China Central Motor and other sub-sectors of the outstanding leading shares.

Water big fish big, mechanical equipment "golden track" is growing at a high speed. On the one hand, benefiting from the economic recovery, improved corporate profitability and the upward trend of machinery and equipment, mechanical ETFs are dancing with cyclical growth. On the other hand, in recent years, the proportion of domestic construction machinery sales has gradually increased. From 2009 to 2019, the proportion of domestic excavator sales increased from 28% to 63%, after the outbreak control, europe and the United States residential and automotive consumption rebound will lead to a rebound in machinery and equipment exports. With the acceleration of domestic substitution, China's leading industry companies have global competitiveness, is currently in a critical period of industrial upgrading, and mechanical ETFs are able to grasp the "domestic substitution" this historical opportunity. In addition, mechanical ETFs have good growth opportunities derived from the long-term logic of the high-tech industry and the carbon-neutral energy revolution. With technology iteration, equipment update, industrial automation trend, policy to promote industrial upgrading, the industry is standing in the wind of the times, machinery and equipment industry space is huge.

In fact, this is no longer a Wells Fargo fund to issue innovative ETF products, with years of deep accumulation in indexation investment and research, Wells Fargo funds in recent years in the sub-sector theme ETF field continued to provide investors with a wealth of convenient investment tools. Its quantitative team has been in formation for more than 11 years and is one of the earliest developed quantitative teams in China. Steady, today's Wells Fargo Quantification team has thick, thin hair and a comprehensive layout of the ETF product line. In March 2020, The WellS Fargo Fund Won The "Quantitative Investment TauruS Fund Company" Award In The 17th China Fund IndustrY TauruS Award.

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Grasp the "core values" of the machinery industry, the first batch of machinery ETFs will be issued soon

In the past two years, A-shares out of the structural market, with strong investment and research capabilities, public fund performance rising across the board. With the concept of "stock speculation is better than buying funds" becoming more and more popular, the market is not short of performance funds to investors to bring real rich returns. It is reported that wells-off China Securities sub-machinery and equipment industry theme ETF (field abbreviation: mechanical ETF, fund code: 159886) will be issued on March 22.

Grasp the

Multiple benefits pulled the machinery industry up more than expected

In 2020, China's machinery industry bucked the trend and the economic performance exceeded expectations. According to the China Machinery Industry Federation, in 2020, the machinery industry achieved operating income of 22.85 trillion yuan, up 4.49% YoY, 3.73 percentage points higher than the national industry;

Multiple benefits pulled the machinery industry up more than expected

Machinery industry: manufacturing business climate rebounded significantly

Last week, the CSI 300 rose 3.74 percent, Shenwan machinery and equipment sector rose 2.37 percent, losing 1.38 percentage points to the market, in Shenwan all the first-level industries in the 17th place, 18 sub-sectors 11 up and down, including performance The top 5 sub-sectors were construction machinery, metal products III, other specialized machinery, printing and packaging machinery, textile and garment equipment, up 4.71%, 4.19%, 3.90%, 3.29% and 2.68%, respectively. In terms of valuation, as of the latest close, shenwan machinery and equipment sector price-earnings ratio (TTM, overall method, excluding negative values) was 29.09 times, compared with the valuation premium ratio of the CSI 300 of 97%. In terms of individual stocks, titan shares (28.92%), Maiwei shares (23.07%), Shandong Weida (20.68%), Jinto shares (18.87%), Rongjie shares (18.63%), the largest decline The previous ones were Huning Shares (-29.74%), Fida Environmental Protection (-16.86%), C Tongye (-16.41%), Today Venture Group (-15.79%), Hongyu Shares (-12.63%).

Machinery industry: manufacturing business climate rebounded significantly

Zhongshan factory waste machinery recycling where there is - Xinhua News

Most recycled raw materials, such as waste plastics, waste rubber, waste paper, waste non-ferrous metals, etc., in accordance with the current recycling manufacturing technology, regeneration once, the intrinsic quality is reduced once, so that the quality of recycled products is poor. And scrap iron repeatedly back to the furnace steelmaking, recycling, not only will not reduce the inherent physical and chemical performance of steel and technical indicators, but also in a sense, the steelmaking process is the process of steel water purification. Each time the scrap iron returns to the furnace, its inherent harmful elements (sulfur, phosphorus, silicon, etc.) and other impurities are purified once. Therefore, the use of scrap iron back furnace steelmaking, is conducive to improving the intrinsic quality of steel water, improve the physical and chemical performance of steel and technical indicators, can be described as "Phoenix Nirvana, bath fire rebirth", "hundreds of steel." The difficulty of scrap iron recovery is that the non-ferrous metal elements left in scrap iron are not easily removed in the process of steelmaking, and the sorting in the treatment of scrap iron purification must be strengthened to speed up the technological breakthrough of copper, nickel, chromium and tin in steelmaking.

Zhongshan factory waste machinery recycling where there is - Xinhua News