is coming, coming, it is coming with the market stock fund (QDII)! !
Yesterday, Celestica Vietnam Market Equity Fund (QDII), the country's first theme fund specifically investing in the Vietnam market, officially went on sale. From now on, domestic investors will be able to participate in investment in Vietnam without leaving their homes, crossing the hills and crossing the Friendship Gate with great vigor.
According to rumors, this place is a land full of vitality, just like Canaan, the "The Promised Land" where milk flowed in the past. It is as prosperous and vibrant. The country's urbanization rate has gradually increased in recent years, and it has huge consumption potential. Driven by export growth and an influx of foreign capital, Vietnam is already one of Asia's fastest-growing economies. In 2018, Vietnam's economic growth rate reached 7.08%, ranking first among all developing countries (China's GDP growth rate that year was 6.6%); its per capita GDP was approximately US$2,500, equivalent to China's 2006 level.
According to Vietnam’s official statistics, in the first three quarters of this year, its actual GDP growth rate was 6.98%. According to consensus forecasts from Bloomberg, Vietnam’s real GDP will still maintain a growth rate of around 6.7% in the next two years. In fact, Vietnam’s GDP has maintained a growth rate of more than 6% since 2015.
(Source: Wind)
As for the local stock market, according to Bloomberg statistics, from 2015 to December 31, 2019, the Vietnamese stock market rose by a cumulative 46%. Among them, Vietnam VN 30, the most mainstream index in the Vietnamese stock market, once led the global market with a gain of 55.6% in 2017. During the same period, the index rose by 46.11%, with an annualized return of 7.87%.
(Source: Yingwei Finance)
From now on, for Chinese people, Vietnam not only has brides, but may also be the next hot investment market.
has a sales limit of 200 million yuan, using the Vietnam VN30 Index as a comparison.
According to the announcement of the sale of fund shares, the fund manager and registration agency of Tianhong Vietnam Market Equity Fund is Tianhong Fund Management Co., Ltd. , and the fund custodian is Communications. Bank Co., Ltd. , and the overseas fund custodian is The Hongkong and Shanghai Banking Corporation Limited . The fund type is a stock securities investment fund.
Funds are divided into two categories, A and C, based on different charging methods of subscription fees, subscription fees and sales fees. The sales period is from the 6th to the 17th of this month, and the minimum fundraising amount is RMB 10 million. The upper limit of the fund's initial fundraising scale is planned to be RMB 200 million. If the fund's fundraising scale exceeds the upper limit after the fundraising deadline on any day during the fundraising period (including the first day), the fund raising will be terminated early.
The direct sales agency of the fund is Tianhong Fund Management Co., Ltd., and other sales agencies are Tiantian Fund, Flush, Lufax , Guotai Junan , Huatai Securities, Haitong Securities , Guangfa Securities , Guangzhou Securities, Minsheng Securities , Essence Securities , Guosen Securities , Ping An Securities , CITIC Construction Investment, Egg Roll Fund. Yesterday, Tianhong Fund announced the addition of two more sales agencies, Ant (Hangzhou) Fund Sales Co., Ltd. and CITIC Securities .
As for the most critical asset allocation, the proportion of fund stock assets shall not be less than 80%; the proportion of investment in stocks, depositary receipts, etc. issued by Vietnamese theme enterprises shall not be less than 80% of non-cash fund assets; investment in cash or with a maturity date of Government bonds within one year shall not be less than 5% of the fund's net asset value. In terms of
stocks, the fund chooses to invest in high-quality companies that are listed in Vietnam and are representative of the industry. It focuses on investing in stocks with relatively low valuations but good quality and good growth and stability; the fund’s investment targets are those that track Vietnam. Related index-traded open-end index securities investment funds (ETFs) or including but not limited to index-type public funds.
In addition, the fund’s investment assets also include domestic asset-backed securities and financial derivatives (mainly stock index futures) and overseas repurchase transactions. The
fund will conduct asset allocation ratios regularly or irregularly in response to major macroeconomic changes to maintain the effectiveness of its asset allocation. In terms of
performance comparison benchmark, the fund will use Vietnam VN30 index yield (converted using valuation exchange rate) * 90% + RMB demand deposit interest rate (after tax) * 10% as the benchmark.As mentioned above, the Vietnam VN30 Index is one of the core indexes of the local Ho Chi Minh exchange series, covering 90% of the trading volume and 80% of the market capitalization of the Chi Minh Exchange. It is a reliable basis for selecting market capitalization rankings from the Vietnam All Share Index (VNAllshare Index). It is composed of 30 stocks with good current liquidity and adopts an index weighted by its own circulating market capitalization.
As of August 9, 2019, the Vietnam VN30 Index covers 86% of the market value of Vietnam’s all-index.
It is worth mentioning that the fund manager Hu Chao has relatively short experience in fund management. According to public information, Hu Chao holds a master's degree in finance from Vanderbilt University and has 6 years of experience in the securities industry. He has served as a senior consultant at PricewaterhouseCoopers Consulting (Shenzhen) Co., Ltd., Zhonghe Small and Medium Enterprises Financing Guarantee Co., Ltd. Senior Business Manager, Head of Overseas Investment Business of China PICC Property and Casualty Co., Ltd. .
In June 2016, Hu Chao joined Tianhong and served as an international business researcher. Since September 2019, he has served as the fund manager of Tianhong S&P 500 Initiated Securities Investment Fund (QDII-FOF).
As far as the past performance of Tianhong Fund’s funds is concerned, among the 99 previously established funds, 16 have had negative net value growth rates since their establishment, but there are also 15 funds with growth rates higher than 30%. Since its inception, there are 74 funds with positive net worth exceeding the benchmark return rate.
(Source: Wind)
A comprehensive look at the Vietnamese stock market
The largest local stock exchange in Vietnam is Ho Chi Minh City Stock Exchange (Ho Chi Minh City Stock Exchange). Its headquarters is located in Ho Chi Minh City. The exchange was formerly the Ho Chi Minh City Securities Trading Center established in 2000 and is the administrative agency of the National Securities Commission of Vietnam.
According to the latest data disclosed on the exchange's official website, there are currently 474 listed stocks on the Ho Chi Minh Stock Exchange. Among them, there are 383 stocks, 44 bonds, 3 funds and 2 ETFs. In terms of market value, stocks accounted for 95.64%, with a market value of VND 886.52 trillion ; followed by bonds, accounting for 3.77%, with a market value of VND 34.92 trillion.
(Source: Ho Chi Minh Exchange official website)
In addition, there is the second largest stock exchange in Vietnam, Hanoi Stock Exchange. The exchange was established in March 2005, formerly known as the Hanoi Securities Trading Center. Its main business is stock and bond trading and trading. In 2009, the Hanoi Securities Exchange Center was renamed and listed on the Hanoi Stock Exchange. According to the Hanoi Stock Exchange, as of the latest exchange, there are 367 listed companies with 13.422 billion shares issued.
According to the industries of listed companies, the most listed companies on the Hanoi Stock Exchange are from the financial industry, accounting for 37.1%, followed by the manufacturing, construction and energy mining industries, accounting for 17.4%, 14.2% and 10.5% respectively.
(Source: Hanoi Stock Exchange official website)
Regarding the performance of the two cities, its performance can refer to the Ho Chi Minh Index. The Ho Chi Minh Index is another important market index besides the VN30. The index mainly tracks the performance of a total of 303 stocks on the Ho Chi Minh Stock Exchange and the Hanoi Stock Exchange. Since 2015, the index has increased from 562 points to the current 959 points, an increase of 70.6%. In April 2018, the index reached an all-time high of 1211.34 points.
(Source: tradingeconomics.com)
As for the VN30 constituent stocks targeted by the fund, three of the top 11 stocks ranked by market value come from banking business ( Vietnam Foreign Trade Joint Stock Commercial Bank , Vietnam Investment and Development Bank, Vietnam Joint Stock Commercial Bank, Techcombank); one in the retail industry (Vincom Retail), one in the aviation industry (Vietnam Airlines), one in the real estate industry (Vinhomes), one in the energy industry (Pestroveitnam Gas JSCrp), one in the dairy industry (Vinamilk), one in the beer industry (Saigon Beer Alcohol Beverage), as for Vingroup JSC, which has the highest market value The business scope covers industries such as real estate, retail and medical health.
(Source: Yingwei Finance)
From the perspective of industry structure, in addition to the Internet industry, the listed companies with the highest market value in Vietnam's VN 30 Index belong to industries that are quite similar to those in China.
From the perspective of social demographic structure, economic growth rate, and even the structure of the stock market industry, Vietnam has many similarities with China more than ten years ago. In terms of investment targets, the Vietnamese market is a market with great growth potential. Whether Vietnam’s future is worth betting on, and whether the Vietnam-themed funds offered this time can fully reap the dividends of Vietnam’s economic growth, it is up to investors to make their own judgments.
