The social security fund, known as the "sharpshooter" of the stock market, has attracted much attention from the market.
On October 12, the National Council for Social Security Fund released the 2023 annual report of the National Social Security Fund (hereinafter referred to as the Social Security Fund), showing that the social security fund will achieve positive returns in 2023, with an average annual investment return of 7.36% since its establishment in August 2000, and a cumulative investment income of 1,682.576 billion yuan.
It is generally believed that the investment decisions of the social security fund are usually based on the concept of long-term value investment, and its shareholding behavior can send a positive investment signal to the market, guide other investors to pay attention to value investment and long-term investment, so as to promote the healthy development of the capital market.
The social security fund publishes the account book
From the perspective of investment performance, in 2023, the social security fund will achieve an investment income of 25.011 billion yuan, with an investment return of 0.96% and an investment return of 1.02% after deducting non-recurring gains and losses. Among them, the realized income was 79.461 billion yuan, and the fair value change of trading assets was -54.450 billion yuan.
Since its establishment, the average annual investment rate of return of the social security fund has been 7.36%, and the cumulative investment income has reached 1,682.576 billion yuan.
By the end of 2023, the total assets of the social security fund will reach 3,014.561 billion yuan. Among them: direct investment assets were 940.703 billion yuan, accounting for 31.21% of the total assets of the fund; The entrusted investment assets amounted to 2,073.858 billion yuan, accounting for 68.79% of the total assets of the fund. The domestic investment assets amounted to 2,668.568 billion yuan, accounting for 88.52% of the total assets of the fund; Overseas investment assets amounted to RMB345.993 billion, accounting for 11.48% of the fund's total assets.
In 2023, the fiscal net allocation of funds to the national social security fund will be 50.798 billion yuan, of which: 20.000 billion yuan will be allocated from the general public budget, 31.080 billion yuan will be allocated to the lottery public welfare fund, and 282 million yuan will be transferred to state-owned shares after the implementation of the policy of transferring part of the state-owned capital to enrich the social security fund.
The report also mentions that the Social Security Foundation continues to improve the investment and operation level of various types of assets. In terms of stock investment, we are firmly optimistic about the long-term investment value of domestic stocks, invest in domestic stocks from a long-term perspective, and deploy against the trend in the volatile market. At the same time, we will optimize the asset structure of overseas stock stock stock and seize the investment opportunities in related industries and sectors such as artificial intelligence in overseas markets.
Position layout exposure
With the official conclusion of the semi-annual report disclosure of listed companies, the changes in the holdings of heavy stocks at the end of the first half of 2024 and the second quarter of the social security fund have surfaced.
According to Choice data, social security funds appear among the top ten circulating shareholders in the 2024 semi-annual reports of 614 listed companies, holding a total of 69.1 billion shares and a market value of more than 400 billion yuan.
Retrospectively, it was found that more than 360 stocks have been held by the social security fund for more than 4 consecutive quarters.
In terms of the number of shares, the largest number of shares held by the social security fund is the Agricultural Bank of China, with 23.521 billion shares, followed by the Industrial and Commercial Bank of China, which is known as the "universe line", with 12.331 billion shares.
In addition, Chinese People's Insurance, Beijing-Shanghai High-speed Railway, Founder Securities and Guosen Securities are the top social security funds.
From the perspective of the market value of its holdings, the market value of its holdings in Agricultural Bank of China, Industrial and Commercial Bank of China, Chinese People's Insurance and Beijing-Shanghai High-speed Railway is about 102.6 billion yuan, 70.3 billion yuan, 28.9 billion yuan and 16.4 billion yuan respectively.
In addition, the performance is more eye-catching, as well as Hualu Hengsheng, BYD, Sun Paper, and Chint Electric. Among them, although the social security fund only holds 10.5025 million shares of BYD, it has a market value of 2.628 billion yuan with a price of more than 300 yuan per share.
In terms of shareholding ratio, the largest proportion held by the social security fund is Chinese People's Insurance Company, reaching 15.79%; It is followed by Founder Securities, with a shareholding ratio of 13.24%.
In addition, Hongya CNC, Biyin Leving, Yingke Regeneration, Jianlang Hardware, Yinlun Shares, etc. are held by the social security fund. It is worth noting that INTCO Regeneration is also the only one of the science and technology innovation board stocks.
According to the semi-annual report, a total of 4 social security funds appeared in the list of the top ten circulating shareholders of INTCO Regeneration, namely E Fund Management Co., Ltd. - Social Security Fund 17042 Portfolio, Guotai Fund Management Co., Ltd. - Social Security Fund 2103 Portfolio, National Social Security Fund 111 Portfolio, E Fund Management Co., Ltd. - Social Security Fund 17041 Portfolio, ranking the third, fifth, sixth and tenth largest circulating shareholders of the company respectively. The total number of shares held is 11,969,700 shares, accounting for 11.69% of the outstanding shares.
The investment logic of the "sharpshooter".
Although the investment income of the social security fund is excellent, as an ordinary investor, it is not possible to completely "copy homework".
On the whole, the social security fund tends to achieve steady growth in income through long-term asset allocation. In particular, the valuation of the industry is at a low level, and the pessimistic expectations of performance have been fully reflected, and the next performance is expected to usher in a recovery of the dilemma reversal industry, such as banking, consumption, medicine and other sectors, which are mainly used as the bottom position.
In the second quarter of this year, the social security fund continued to hold a heavy position in the financial sector and focused on investing in banking stocks, one is that bank assets are relatively safe, and the other is that the current valuation of bank stocks is low and the dividend yield is high, which is equivalent to buying high-quality net assets at a discount, and bank stocks rose strongly in the second quarter.
In addition, the social security fund is also very fond of the growth track that is in a high boom cycle, and is strongly supported by national policies, and has a long-term growth logic, such as energy cyclical stocks, automobile tracks, etc.
According to public data, more than 200 stocks have been held by the social security fund for more than two years. Among them, 44 companies such as OCT A and Zhongnan Media have been held by the social security fund for more than 5 consecutive years.
Compared with individual investors, the social security fund holds a basket of stock portfolios, which will be more diversified in terms of industries, sectors and individual stocks. In order to support the sustainable development of social security, priority will be given to industries and enterprises related to social security for strategic investment.
In the view of industry analysts, the social security fund, Huijin and other national teams are real value investments, will not be troubled by market sentiment fluctuations, and can truly sell high and buy low. When the market is relatively sluggish, retail investors are waiting, the national team has increased its positions in a big way, and when the market fluctuates, the social security fund has reduced its holdings.
"In the A-share market, only by insisting on fundamental research and value investment can investors finally win. It is often difficult to obtain a good return on investment by speculating on concepts and themes. ”