Another foreign-funded institution has voiced its voice! China stock is the most valuable in the world.

China Fund News reporter Yao Bo

The rebound of Hong Kong stocks stopped. On January 26th, the Hang Seng Index closed down 1.6% and the Hang Seng Technology Index fell 3.75%. Among them, pharmaceutical and technology stocks led the decline, and Yaoming fell sharply due to the news, with the largest decline among the HSI constituent stocks; Lenovo Group also fell by nearly 10%, the largest drop among the constituents of the Hang Seng Technology Index.

Previously, the relatively stable southbound funds began to buy in large quantities, indicating that the confidence of mainland funds has gradually recovered. On January 26th, southbound funds bought a net amount of HK$ 5.323 billion, which was the day that they bought the most after this round of Hong Kong stock market crash on January 17th.

Some foreign-funded institutions have spoken out, saying that China stocks are the most valuable assets in the world, and even willing to leverage to buy high-quality China stocks.

In the afternoon, Yaoming suddenly fell sharply, with WuXi PharmaTech falling by 32% at most, YaoMing Bio falling by 28% at most, and YaoMing United of the same line falling by 24% at most.

It is worth noting that Yaoming Bio triggered the market fluctuation adjustment mechanism at 2: 7 pm and 2: 14 pm, which is a measure aimed at alleviating excessive market fluctuation, and usually starts when the stock price fluctuates greatly in a short time. The launch of this mechanism led to a five-minute cooling-off period for stock trading, with a view to stabilizing market sentiment.

It is understood that the adjustment mechanism of the Hong Kong stock market aims to alleviate the extreme price fluctuations caused by automated trading. When the relevant stock price exceeds 10% (constituents of Hang Seng Composite Large-cap Index), 15% (constituents of Hang Seng Composite Medium-cap Index) or 20% (constituents of Hang Seng Composite Small-cap Index) of the last trading price five minutes ago, the market adjustment mechanism will be triggered and a five-minute cooling-off period will begin immediately.

At the close, WuXi PharmaTech fell by 16%, WuXi Bio by 18% and WuXi PharmaTech by 20%.

According to the latest information of the Hong Kong Stock Exchange, on January 19th, BlackRock reduced its holdings of 1,116,927 H shares of Wuxi PharmaTech at a price of HK$ 783,646 each, with a total amount of about HK$ 87,527,500. After the reduction, the latest shareholding number is about 26.7607 million shares, and the latest shareholding ratio is 6.91%.

The representative work of Gü len Management, CEIBS Healthcare, also reduced its holdings of WuXi PharmaTech A shares. In the third quarter of 2023, CEIBS Healthcare held 61.5 million shares of Wuxi PharmaTech, and in the fourth quarter of 2023, it held 58.59 million shares, a decrease of 2.9 million shares.

According to the latest information of the Hong Kong Stock Exchange, Chairman Li Ge increased his holding of 5,235,500 shares of Yaoming Bio on January 24th at a price of HK$ 287,123, with a total transaction amount of about HK$ 150 million. After this increase, Li Ge’s latest shareholding in Yaoming Bio is about 589 million shares, accounting for 13.84% of the company’s total share capital.

After the correction of Hong Kong stocks, favorable policies have been frequent, and foreign investors have been high-profile bullish on China stocks. A co-founder of Gavekal Group wrote that China stock market is now the most valuable market in the world.

Charles Geff, the co-founder of the company, pointed out in an article on January 24th that the value of China stock was undervalued relative to cash, China bonds, gold and other stock markets in the world, and now it is the most valuable investment in the world. Moreover, China is at the stage where the profit growth of enterprises begins to exceed the cost of capital, which means that profits will increase substantially, enterprises will resume investment and recruitment, and China enterprises will see a booming profit. He said that he even wants to use leverage to buy high-quality China stocks.

It is understood that Gavekal Research, headquartered in Hong Kong, provides asset allocation consulting services and manages some global funds.

In addition, some fund managers at VanEck pointed out that the China stock market is at an inflection point, which may now constitute a buying opportunity this year.