Category: Money tips Release Date: 2007-07-06
New Century Fund, recently released the 2007 A-share investment strategy report that in 2007 China's economy will maintain a double-digit growth, driven level of profitability of listed companies to continue to increase; with appreciation of the renminbi steady flow of foreign capital inflow and other factors will continue to fueled the bull market constituted a long-term market rally driving force for 10 years up to 10 times is not an unattainable myth.
The report holds that macro-institutional changes and technological progress on productivity enhancement of the formation of endogenous growth potential is far from being full, urbanization, demographic dividend, consumption growth, export upgrade would constitute a new impetus to economic development, the source of all policies of the regulation will make economic growth more robust, take-off will not change the historical trend of our economy and will further promote the rapid economic growth. The new century, the Fund believes that in 2007 China's economy will maintain a double-digit growth will accelerate the pace of yuan appreciation, CPI growth rate of no more than 2%.
The market valuation of general concern, the new century, in the report that the Fund, A shares will enter the revaluation stage. Corporate earnings growth is the revaluation of the external appearance of overseas companies to return, equity incentive and asset injection and other factors, will promote the A-share market to enhance profitability and continuously fueled the bull market. Report is expected in 2007, 2008 A-share companies level of profitability compound annual growth rate will reach 20% -30%. At present, the high level of static valuation, and did not fully reflect China's long-term economic growth potential. Seriously undervalued yuan to attract foreign capital to flow into the Chinese market. Low interest rates, ample liquidity, promote the value of the yuan revaluation of assets deepening, constitute a long-term rise in A-share market driving force.
New Century Fund, said it would adhere to the "triple advantage" stock-picking philosophy, focusing on choice and investment advantages of the industry with core competence and the value of a reasonable or relatively undervalued companies, in order to resist the first half of 2007 brought down short-term stock investments risk. Investment strategy in 2007 will continue to adhere to a starting point --- continued growth, to seize the two main lines --- in the context of the appreciation of yuan revaluation and the upgrading of consumption as the main content of industrial upgrading. At the same time, in-depth China's rapid economic growth in mining investment opportunities, with due attention to investment in the three main themes --- 3G, Olympics and brought about by digital television, high-growth investment opportunities.
Configuration in the industry, the new century and then focus on promoting the optimistic directly affected by the revaluation of real estate, financial services, benefiting from consumer demand for long-term growth of the consumer goods industry (food and beverage, brand clothing, tourism, retail, communications) and in the market competition and Export to upgrade constantly growing manufacturing (machinery and equipment, automobiles, iron and steel).
