Data:2009-12-12 2:34
Category: Money tips Release Date: 2007-02-23
This year, the blue chip performance has been poor, to a large extent be attributed to the structure of retail investors in the current market-oriented. Now it seems that compared with the small-cap stocks, blue chips relatively reasonable valuation, profitability, stronger, stock index futures, margin trading will also bring a premium, better to avoid systemic risk, long-term perspective and better able to benefit from China's economic growth. Configuration from the industry point of view, we are optimistic about the industry, such as the cyclical industries (including iron and steel, petrochemicals, etc.), finance, real estate, automobile, equipment manufacturing, electric power and so on, are all blue chip companies gather.
While optimistic about our long-term blue chips, but the short-term blue chips may still be difficult to have continued to perform well. Two main reasons: First, valuations are no longer low, blue chips rise space is limited; 2, in a different investment philosophy, even though institutional investors are willing to step up to the blue chip configuration, retail funds is not likely to substantially flow large-cap stocks; 3, the future expansion of large-cap stocks to bring more capital will slowly release surface pressure.
Even so, we continue to believe that investors should an active interest in blue chips. According to the 2006 Annual Report and in 2007 a quarterly performance, bottom-up analysis shows that some leading blue chip has obvious advantages of the valuation. Sensitive period in the market, blue chips are the best choice to avoid systemic risk, its configuration also has strategic significance. (GF Securities)
