Chinese stock funds recover In one month it turned positive up to 28.39%, while in 1 year it was still negative 21-38%.
In 2565, Chinese stock funds were among the sectors with the most volatility and negative returns. Report from Morning Star Revealed that at the beginning of the year the average return was negative 15%, a negative factor from the lockdown in Shanghai. and recovered in the second quarter from the easing of the lockdown. This resulted in an average positive return of 2% and returned to being the group with the most negative average return in the 3rd quarter, approximately 3%. It can be seen that in the past, the zero COVID policy was considered one of the factors that affected to significant investment This affects the consumption and real estate sectors, which are important parts of the overall Chinese economy.
Although China is still facing the COVID-19 outbreak, But related measures have begun to be relaxed. And measures have been issued to enhance liquidity in the real estate group continuously. As a result, in the last quarter of this year, the Chinese stock market has recovered, with the Morningstar China Index being positive at 8.4% since entering the last quarter of the year (information as of December 7, 2022).
Morning Star Revealing the returns of the 10 largest Chinese stock funds (as of November 30, 2565), it was found that in the past 1 month, many funds had recovered quite well. From the fund table, United All China Equity (UCHINA) has a 1-month return of 28.39%. However, in the picture of 1-year returns, most funds still have quite negative returns.
Out of the 10 such funds, the SCB China A-Shares fund has the lowest negative return in one year at 1% and has a lower risk profile than other funds. It is an investment as a feeder fund to the main fund, ChinaAMC CSI21.61 ETF, so it is an index fund with returns similar to the CSI 300 index.
while the K China Equity-A(D) fund from Kasikorn Asset Management Company Limited This is the largest fund of the group with a value of more than 1.5 billion baht that has recovered quite well in 1 month, but in 1 year or 3 years has negative returns and higher risks than the group. While the K China Controlled Volatility fund has better overall performance in terms of both returns and risks.
As for the Bualuang China Equity fund (B-CHINE-EQ), it is the only fund that still has a positive 3-year return of 3.3% per year and has lower risk than the group. The fund continues to invest in 2 funds from the mutual fund company. Allianz, both in A-share and all China funds, has made the proportion of A-share shares at the level of 50-60% for the past 3 years, including the selection of investing in individual stocks by Bualuang Asset Management, which increases Weight of some stocks from Allianz funds
Morning Star stated that as for Chinese stock mutual funds, although there has been significantly less money flowing in compared to the past two years (2-2563), they are still considered a group of funds that received Interest from Thai investors This can be seen from the cumulative net inflows over the past 2564 months of approximately 11 billion baht, or the group with the 1.6th highest net inflows in the industry, accounting for organic growth of 4%. Total net asset value is 9.4 billion. baht
for investment trends Morning Star states that investing in Chinese stocks in the past has had important negative factors from COVID policies. The relaxation of measures is considered to help the Chinese business sector recover from the aforementioned factors that have put pressure on Chinese stocks throughout the past. The growth of China's economy is influenced by other factors, such as the results of measures to enhance liquidity in China's real estate market. Including next year there is a possibility of an economic recession. It remains to be seen how much it will affect Chinese production and exports.
