China A FVMR

Our China A investment universe covers non-financial companies listed in mainland China as A-shares.

History

The five-year backtesting period shows the ASIR China A FVMR Model portfolio generated an annualized annual return of 23.8% versus the ASIR Benchmark’s 17.5%. The backtesting benchmark equally weights the largest and most liquid non-financial companies listed in China, also called “China A-shares.” On average the universe has consisted of 900 companies each year over the past ten years.

We started to publish our ASIR China A FVMR Model portfolio on January 27th, 2016, and the charts and tables on this page show the return as of January 9th, 2018. Since publishing, the ASIR China A FVMR Model portfolio has returned 30.8% p.a. versus the CSI 300 Index at 22.7% p.a. Note that the CSI 300 benchmark includes financial companies, while the ASIR China A FVMR Model portfolio does not include any financial companies.

Examples of previously held positions 

300122 CH
Chongqing Zhifei Biological Products Co., Ltd.

Attractive because:

Solid short-term sales momentum, high level of cash sales, and earnings on an upcycle trend relative to its sector.

Company Background:

Chongqing Zhifei Biological Products is a Chinese company listed on the Shenzhen stock exchange. It primarily produces medical vaccinations for influenza, hepatitis, and meningitis. It holds the rights to several products that have passed Phase III trials in China, and it is one of a few companies approved by the World Health Organization (WHO) for manufacture and marketing of Tuberculosis treatments. The company owns a subsidiary company focused on the manufacture of hi-tech biological pharmaceuticals.

000725 CH
BOE Technology Group Co., Ltd.

Attractive because:

Earnings on an up-cycle trend, cheap on a PE basis, and solid short-term earnings momentum relative to its sector.

Company Background:

BOE Technology produces smart systems, intelligent display units for consumer products and health services throughout China. It  manufactures special film transistors and modules for use in display screens of mobile phones, laptops, tablets, and televisions. The company's health services division designs intelligent designs and wearable technology along with cloud-based services for the healthcare industry. 

600519 CH
Kweichow Moutai Co., Ltd.

Attractive because:

Earnings on an up-cycle trend, sales on an up-cycle trend, and strong cash levels relative to its sector.

Company Background:

Kweichow Moutai Company Limited is a Chinese company listed on the Shenzhen stock exchange. It is the most valuable liquor company in the world as of 2017. It specializes primarily in liquor production, as well as manufacturing of food and beverage packaging. The company also produces anti-counterfeiting technology and conducts research and development for relevant IT products. 

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