Summary:

1. Too faster IPO approval
2. Tighten regulation on speculation over sub-new stocks and stocks proposing high share conversion and dividend
3. Increasing supervision on idle funds like Wenzhou funds speculation on Xiong’an concept Stocks

A-share market is in the period of value investment.

As of April 25, more than 100 fund companies disclosed their 1st quarter report. Equity-focused funds weighted 56.64%, up 7.68% quarter-to-quarter.

Among them, stock funds and mixed funds weighted 76.72% and 50.24% separately.

And there are 306 funds holding 000651.sz, the largest number of stock and mixed funds holding a single stock.

Besides, there are 262 and 219 funds holding 600519.sh and 000858.sz separately, ranking second and third.

Signal for the end of clustering in “pretty 50”:

1,Doubt on the growth of consumer good sector which is affected the downward pressure from real estate sector.
2, Once new leading sectors found, investors can switch from risk-off mode to risk-on mode
3, uncertainty reduced in macro economy outlook so the certainty premium could be reduced in consumer good sector.

China and Global asset allocation strategies:

China:
Year 2012: CTA strategy
Year 2013-15: stocks (especially SME sector) quantitative strategies for selecting stocks [achieving alpha]
Year 2016: CTA strategy
Now: Stock-picking strategies [value investing]

Global:
Year 2002-07: Alpha strategy, market maker strategy
Year 2008-11: Global Macro Strategy, Time selection strategy, CTA strategy
Year 2012-14:Stock picking strategy