The close of 2024 is rapidly approaching, and with it, the fierce competition among publicly offered funds to secure top annual performance rankings is reaching a boiling pointIn recent weeks, numerous funds that hold undervalued stocks have seen significant gains, while some unique stock holdings have also been making notable moves.

Among the leading contenders for annual performance accolades among actively managed equity funds are stocks like Runze Technology, Laopu Gold, Dekeli, and Jingda Co., which have shown remarkable strength recentlyNotably, on December 18, Runze Technology, the ninth largest holding of MSIC Digital Economy by the end of the third quarter, surged over 5%. Laopu Gold, the largest holding of Southern China New Economy QDII, climbed a staggering 12.92% on December 12. Dekeli, the tenth largest stock in the holdings of Caitong Economic Selection One-Year Holding Fund, experienced a 14.31% spike on December 13. Similarly, Jingda Co., which is the top holding of Yinhua Digital Economy, rose 4.15% on December 18.

Additionally, some unique stocks that fund managers identified, such as Nanjing Chemical Fiber, Guang'an Aizhong, and Jinbei Automobile, have recently exhibited strong performance, contributing significantly to overall fund returns.

As the annual performance race heats up, the market has observed a remarkable surge in the prices of several heavy-hitting stock holdings by various funds

As of December 17, the return on MSIC Digital Economy has reached nearly 60% this year, making it one of the best performers among actively managed equity fundsRunze Technology’s remarkable performance has significantly boosted MSIC Digital Economy’s net asset value, leading to a surge in its performance ranking.

Meanwhile, Southern China New Economy QDII A, a key investor in Laopu Gold, reported a substantial 23.54% holding in this stock as of the end of SeptemberThe stock’s sharp increase has driven the performance of this fund, propelling it into the upper ranks of QDII productsFollowing substantial gains in Laopu Gold, its NAV surged rapidly, leading to significant increases in performance rankings.

Another fund, Caitong Economic Selection Fund, which is currently sitting in third place in terms of annual performance, saw its tenth largest holding, Dekeli, surge 14.31% on December 13, with an additional nearly 6% gain on December 16. This string of increases has led to substantial profits for the fund.

Jingda Co

also contributed to the rising fortunes of Yinhua Digital Economy, marking a 4.15% increase on December 18 after a series of notable price movements throughout November and December, which altogether amass a nearly 30% increase since November 28, demonstrating its pivotal role in enhancing the fund's performance.

Unique stock holdings, or 'secret gems,' have played a critical role in the performance uptick of various funds during this crucial time in the annual performance rankingsFor instance, Huaxia Zhao Xin Hong Rui A has accrued a return of 33.96% this year, and its unique holding, Nanjing Chemical Fiber, saw a phenomenal gain of over 300% from September 24 to December 18.

Longsheng State-Owned Enterprise Reform Fund has also reported a 25.16% return this year, leveraging its unique holding, Jinbei Automobile, which has nearly doubled in stock price and gained close to 8% since the start of December

Meanwhile, Nanhua Fengyuan Quantitative Stock Selection A has achieved an 18.54% return this year, buoyed by the robust performance of its unique holding, Guang'an Aizhong, which has surged nearly 20% in December alone.

Despite some openly available funds underwhelming this year, the Yongying High-End Equipment Smart Selection Fund has seen its net asset value grow over 50% in the past three months, driven largely by multiple unique stock holdings performing exceptionally wellAs of the end of the third quarter, Qianzhao Optoelectronics joined the ranks of top ten holdings for this fund, while other companies like Tianyin Machinery and Shanghai Hu Gong also placed within its top stocksThis exclusive focus on these unique stocks has served to significantly influence the fund's overall performance, leading to a near 90% surge in Qianzhao from September 24 and over 40% for each of Tianyin and Shanghai Hu Gong over the same timeframe.

Moreover, various theme funds focused on the Beijing Stock Exchange have also benefited from managers’ keen eyes for unique stocks, contributing to substantial increases in net value

alefox

For instance, E Fund's selection of the Beijing Stock Exchange shows an annual return exceeding 30%, with AiRong Software turning into a tenfold stock asset since September 24. While this stock has faced some declines since late October, it continues to display an impressive growth trajectory, solidifying its fifth position in the fund's largest holdings.

Looking ahead, Minsheng + Yincai Fund indicates that the penetration rate of ETF products through bank channels has rapidly increased, setting the stage for potentially significant injections of new capital into the marketAfter October, a series of growth-steering policies began to take effect, leading to recent marginal improvements in economic dataThis month, the market is gradually entering a phase of performance expectation adjustmentThere are investment opportunities to be found particularly in sectors such as precious metals, banking, electric utilities, public services, transportation, construction, shipbuilding, and white goods.

Zhaoshang Fund maintains that current policy directions have become increasingly clear, with the subsequent market focusing on the implementation and validation of these policies

They predict the index will continue on a fluctuating trajectoryIn a loose liquidity environment, they expect the market to remain active, with further space for small-cap stocks, where investors should focus on a barbell strategy to capture oversized returns from large caps, while simultaneously exploring cyclical sectors that may bottom out and maintain stable mid-term growth.

Southern Fund suggests that as policies roll out, liquidity from transactions depending on policy expectations might temporarily exit the market, advocating for patience in the face of reduced market activity while keeping an eye on specific policy implementationsConsidering the liquidity front, there is considerable room for growth concerning ETFs, foreign investments, and innovative monetary tools from the central bank, with valuations still at low pointsThey encourage a steadfast approach toward purchasing Chinese assets while holding onto thoughts of scaling up during price dips.

Finally, Jin Ying Fund advises maintaining a balanced portfolio towards domestic equity assets in the short term