The announcement of China's new five-year plan may put all the weight on technology and innovation, but the trends that emerged in 2021 with the liquidation of technology stocks worldwide, did not leave the sector in China unaffected.
With funds, that have a big weight in technological stocks, making little profit, investors are looking for other sectors, which can perform better. According to Bloomberg, one of the sectors that offers significant returns is that of real estate.
The main reason is that at this time investors are moving towards Value investments and this creates opportunities. Therefore, the best returns on Chinese stocks have been achieved by funds targeting traditional sectors, while the technology sector is being reorganized.
The three sectors with the largest capital inflows since the beginning of the year are: consumer, health and industrial. Three predominantly cyclical sectors, which have the highest percentage of upward revisions in terms of expected earnings per share, for the next period.
China follows the example of the American market but also the European one, where value stocks are in the spotlight. At the same time, investments related to the change of the energy mix continue with undiminished intensity, with the existing projects extending to the whole range of the industry: from the production, to the final use in order to achieve greater efficiency and to significantly reduce the cost.
China continues to invest massively in renewable energy sources, with estimates that by 2025, wind and solar production could increase by more than 60%.