Glonway November 6th 丨The Social Security Fund bucked the trend and bottomed out. According to Wind statistics, as of the end of the third quarter of this year, the Social Security Fund held a total of 639 A-share companies, holding 69.36 billion shares, up from 60.432 billion shares at the end of the second quarter.
Affected by overall market adjustments, the performance of the Social Security Fund, a veteran investment market, has also been adjusted in recent times. The total market value of shares held fell 1% month-on-month to 413.917 billion yuan.
Looking at specific positions, as of the end of the third quarter, major social security fund companies included Agricultural Bank, Industrial and Commercial Bank, China People's Insurance, Bank of Communications, Beijing-Shanghai High Speed Rail, Fangzheng Securities, Guoxin Securities, etc.
Judging from changes in holdings, in the third quarter of this year, the social security fund added a number of companies such as SDIC Electric Power, Haier Smart Home, Oriental Securities, China Shipping, and Huiding Technology.
In addition, the Social Security Fund added Hualu Hengsheng, Yili Shares, Ziguang Co., Postal Bank, and CGN; reduced its holdings in companies such as ZTE, China Merchants Shekou, Sailun Tire, C&D, and China Merchants Shipping; and withdrew from the list of top ten shareholders of companies such as San'an Optoelectronics, Jinyu Medicine, Baoxin Software, Fosun Pharmaceuticals, Shanghai Airport, and Cambrian-U.
In terms of investment returns, the average annual return on investment of social security funds is significantly higher than that of major stock indexes.From 2012 to 2022, the average annual return on investment of social security funds was 7.1%. In the same period, the average annual return of the China Securities 1000 was 5.8%, the average annual return of the Shanghai and Shenzhen 300 was 4.8%, the average annual return of the Shanghai Stock Exchange Index was 3.2%, and the average annual return of the Shenzhen Stock Exchange Index was 2%.
The Social Security Fund only lost money in 2008, 2018, and 2022, and the return on investment for each of the remaining 19 years was positive. After 23 years of investment and operation, the Social Security Fund Council has won the respect of the industry.
Medium- to long-term capital represented by the Social Security Fund sends a positive signal. At the 2023 domestic investment manager symposium organized by the Social Security Foundation at the end of October this year, Liu Wei, chairman of the Social Security Fund, said that the Social Security Foundation and various managers should give full play to the role of institutional investors and long-term capital to help the steady development of the capital market while seizing investment opportunities.
A number of managers said that at present, the valuation of China's equity assets is at the bottom of history, and A-shares have entered a window period for long-term allocation of value. It is necessary to strengthen countercyclical investment thinking, proactively respond to risks and challenges, actively seize long-term investment opportunities in the capital market, and strive to obtain excess profits.