To The Moon

Since the retracement in late October, China Stocks has once again started another wave of rebound.$KraneShares CSI China Internet ETF(KWEB)$

The trend of stock price is determined by market sentiment, and this year's macro-level determines investor sentiment. At present, there are different voices in the discussion on the valuation of Chinese assets, but there is still consensus on individual logic.

1. Growth enterprises are accelerating to transfer to matures, esp in operations. In order to survive the cold winter, more companies take the initiative to shrink clothes and diet, reduce costs and increase efficiency, and have achieved good results;

2. Company's strong cash flow is favored by market. Extra returns, such as dividends, are once again valued by investors;

3. Pandemic is gradually going away,All kinds of good news come out frequently, which also makes the market plan for recovery in advance.

Therefore, in the rebound cycle, we should pay more attention to those companies with high "flexibility". It is reflected in the stock price, that is, the rebound extent (from the low point), the correlation with the market, and the beta.

Considering the beta in the past month and the strength of the rebound from the 52-week high, we sorted out the recent rebound performance of Chinese stocks and Hong Kong stocks in US stocks.

Top20 companies in US stocks

$Alibaba(BABA)$With US $200.9 billion, it ranks among US stocks, and its beta is 1.17, which has rebounded by 38% since the 52-week low. Because the benchmark of US stock β is$S&P 500(.SPX)$The original volatility of Chinese stocks is even greater, so Ali, as the largest heavyweight, also shows strong volatility.

The rebound performance is better in Chinese stocksHave$Pinduoduo Inc.(PDD)$$Luckin Coffee Inc.(LKNCY)$$TAL Education Group(TAL)$$New Oriental Education & Technology(EDU)$,Beta is below 1, and the correlation with S&P 500 is quite lowTherefore, putting it in a position can play a certain hedging effect with US stocks (non-Chinese). They have more than doubled their rebound from 52-week lows.

At the same time, those who perform poorly include$NIO Inc.(NIO)$$XPeng Inc.(XPEV)$$Baidu(BIDU)$$Lufax(LU)$And other companies, the rebound is not big, but the volatility is not small.The new energy industry as a whole fell into depression in the second half of the year, a global leader$Tesla Motors(TSLA)$It also hit a new low in the year. Baidu is not favored by investors because of business.

Top20 in Hong Kong stocks (excluding dual listing)

Among them$TENCENT(00700)$At present, it ranks first in Hang Seng Index with 350.6 billion yuan, and its beta has reached 1.3. As a heavyweight, its volatility has been quite large, and it has rebounded from the 52-week low by more than 40%, which is better than Ali's performance.

Among the companies that perform well,$JD HEALTH(06618)$$KUAISHOU-W(01024)$$Meituan(03690)$$China Vanke Co.,Ltd.(000002)$Although the recovery rate is over 50%, the volatility is not low. Among them, JD.COM's health has more than doubled since the low point, which also benefits from the double benefits of recovery concepts such as medicine and retail. Vanke, on the other hand, has benefited from the recent favorable real estate policies.

The performance of big blue chips is relatively slow, with low β and high correlation with the market. Of course, their decline this year is relatively low. And$BYD COMPANY(01211)$,$XIAOMI-W(01810)$The rebound is low, and the fluctuation is not small. Recently, the negative sentiment is also high.

From the overall situation, this year, there are companies that have sprung up everywhere, such as$KOOLEARN(01797)$There are also companies whose luck has turned and their performance has increased greatly against the trend, such as$Luckin Coffee Inc.(LKNCY)$.

Differentiation between individual stocks is common, and most of them are also inter-institutional games. On the one hand, they require extra income, and on the other hand, they also require hedging.