For Chinese fund managers in the first half of this year, the operation has been quite challenging. Since hitting new highs in mid-February, the stock markets in China and Hong Kong have faced downward pressure. During this period, investors have been worried not only about inflation, the shift in monetary policies of central banks at home and abroad but also about certain industries facing regulatory pressure, which has added to the volatility of the stock market. As of June 30th, the MSCI China 10/40 Index, which includes both domestic and overseas Chinese companies, has risen by 2.33%. During this period, the average performance of the Morningstar China fund category was 3.13%, with the TaiKang Asset (Hong Kong) Fund managed by Chen Ji, Chief Investment Officer of TaiKang Asset (Hong Kong), defying the trend with a 14.57% increase, outperforming its benchmark of 12.24%, ranking among the top funds of the same type, and ranking first in performance among similar funds over the past year. It has also been rated five stars, the highest rating by Morningstar. Below is an exclusive interview with Mr. Chen Ji, discussing his trading philosophy and outlook on the Chinese stock market.
Performance of TaiKang Asset Hong Kong Fund
(Data Source: TaiKang Asset Hong Kong, Bloomberg, funds of the same type refer to funds that can be sold in Hong Kong in the Morningstar China Stock Fund category as of June 30, 2021; *Class I Hong Kong Dollar Accumulation; Established on February 15, 2017; The reference index was changed from MSCI China Index to MSCI China 10/40 Index in 2020; Past performance does not guarantee future performance. Investors may not be able to recover all of their invested principal.)
Q: The fund you manage has performed very well, where does the excess return mainly come from?
A: From the bottom up...