"Supply Side Reform" Is The Most Popular Investment Theme Of A Shares At The Moment.

Some industries' spontaneous marketization "supply side reform" is significantly improving the ecological environment of the industry, making the profit prospects of leading enterprises brighter.

In Peng Kong's view, this spontaneous market oriented "supply side reform" brought about more investment opportunities than the government driven cyclical industry "supply side reform".

"From the analysis of our micro research and the annual financial report of listed companies, many industries in China are spontaneously implementing the market-oriented supply side reform", that is, while the economic downturn is going on, many weaker SMEs are eliminated by the market, and strong leading enterprises have been able to survive stubbornly in the past few years despite poor profitability.

As a result, the vicious competition of these industries under the background of overcapacity in the past has gradually become a reasonable supply and demand.

The profitability of enterprises has been improved gradually, especially the listed companies as the mainstay of the industry backbone, its profit growth is significantly higher than the main business revenue growth.

This is a very gratifying phenomenon. "

Peng dare told reporters.

This is the first time he has published his own market views to the media since he joined the Soochow Fund.

Peng believes that the "supply side reform", which is vigorously promoted by the administrative means, has the advantage of fast production capacity and obvious improvement in the profitability of the industry. The drawback is that the lack of terminal demand will make the profitability of the cyclical industry lack of continuity in the context of the macro-economic downturn.

Therefore, in the context of cyclical stocks' big gains this year, Peng dare be cautious about the next stage of the cycle.

But this does not mean Peng Dang's optimism about A shares has changed.

However, what really makes Peng Dang hold an optimistic attitude is the continuous profitability improvement of some industries leading shares brought about by the "supply side reform", and the "real growth stocks" that can benefit from economic structural pformation and see sustained growth in performance.

It is pointed out that the photovoltaic industry and the LED industry, which have gathered capacity and expand production capacity as an example, have been obviously overly vicious competition. The profit level of the whole industry is very bad, but in the years when China's economy continues to decline,

And some weak enterprises were spontaneously washed out, and the market resources were pferred to the stronger enterprises. Thus, after the integration of market resources, some leading enterprises took the lead in seeing the prospect of profit improvement, and the improvement trend of this profit will continue for a period of time, thus providing investors with investment opportunities.

In the growth stocks, what Peng Dang particularly valued is that it can keep up with the new trend of global technology development.

In Peng's eyes, the layout of AI industry is obviously the most desirable choice.

He believes that in the coming period, people will feel the tremendous changes brought by artificial intelligence to human life. The new market demand will increase exponentially, and the investment opportunities implied will be self-evident.

At the same time, Peng Dang specifically mentioned the investment opportunities of participating in apple industry chain listed companies.

He pointed out that this year may be an important year for Apple Corp, and some revolutionary designs and applications will be put into use, which will bring huge investment opportunities to related enterprises.

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