Rayuan Hong Kong Overseas Fund surged by 23% in September, focusing on telecommunications, consumer discretionary, e-commerce, and energy sectors
The Ruiyuan China Stock Fund saw a 23.1% increase in net value in September, with a year-to-date return of 46.25%, outperforming similar overseas funds. The fund focuses on sectors such as telecommunications, optional consumption, e-commerce, and energy, with the top five major holdings including JD.com, NetEase, Ctrip, Bosideng, and Tencent. The fund manager pointed out that market sentiment has significantly improved due to the Fed rate cut and domestic policy stimulus, believing that the current market is suitable for long-term investor allocation
Amid the surge in mainland funds, how are overseas Chinese funds performing?
The answer is here.
According to channel sources, the overseas subsidiary of Rayliant Fund's product, Rayliant China Equity Fund, saw a 23.1% increase in net asset value in September. At the same time, the fund's year-to-date return has climbed to 46.25%, leading among similar overseas funds.
The Rayliant China Equity Fund is managed by Rayliant Fund (Hong Kong) Company, which was established with investment from Rayliant Fund founded by Chen Guangming.
Relevant information shows that the top five major holdings of the Rayliant China Equity Fund are JD.com, TAL Education, Ctrip, Bosideng, and Tencent, covering popular sectors such as e-commerce, education, down apparel, internet communication services, and e-commerce travel.
The fund's key industry allocations include consumer discretionary, communication services, and energy.
The monthly report also indicates that the fund manager believes that the mid-September saw a sharp rebound in the Greater China market, with a noticeable boost in market sentiment.
On one hand, on September 18, the Fed cut interest rates by 50 basis points beyond market expectations, officially starting a new round of rate cuts. Overseas rate cuts are beneficial for improving global market liquidity, especially for emerging markets, with the possibility of foreign capital inflows. On the other hand, on September 24, multiple heavyweight policies were introduced domestically, including reserve requirement ratio cuts, interest rate cuts, reductions in existing home loan rates, and the creation of new monetary tools to support stock market development, initiating a new round of policy stimulus cycle.
The fund manager also believes that Chinese assets have experienced nearly 4 years of decline, with valuation offering cost-effectiveness. Currently, the market remains in a favorable investment allocation range for long-term investors.