Main reference: Story in Sinafinance
WANG YAWEI is perhaps the PRC’s best known investor.
So what has he been buying lately and what can the rest of us learn?
After being bounced around by asset management firms last year, he's back to his investing ways and it's time to take a look at what he's been up to lately.
A year ago, Mr. Wang was best known as the most prominent face at the PRC’s largest fund management firm – China AMC.
The 300 billion yuan-strong fund with over 13 million investors welcomed Wang into its doors back in 1998.
Investor Wang Yawei
Photo: SinafinanceHe has more often than not bested the benchmark Shanghai Composite – the index which tracks both A-shares and B-shares in Mainland China.
But China AMC’s star fund manager hit a rough patch as the Year of the Dragon kicked off and then struck out on his own shortly thereafter, quitting China AMC in April 2012.
Late last year, Chinese state-run media reported that Wang registered a private equity firm in Qianhai, a financial reform test zone in Shenzhen.
Here's a peek at what’s been making him one of China’s most watched investor.
According to market insiders with knowledge of Wang’s dealings and shareholdings, there are many distinguishing characteristics to his post-China AMC tenure.
He is partial to stocks that have been stuck in the doldrums for an extended period, or those counters that see minimal daily turnover and haven’t moved one way or the other over long timeframes.
Generally, Wang looks for stocks that are overlooked by investors rather than playing the bandwagon approach. In particular, he has leaned toward underappreciated mini- to small-caps of late.
Recent performance of Chinese shares. Source: Yahoo Finance
Wang no doubt is particularly keen on capitalizing on some of the underappreciated stocks he canvassed during his tenure with China AMC, the country's biggest asset management group.
One of his most high-profile post-China AMC bets has been Shaanxi Broadcast & TV Network Intermediary (SHA: 600831), which is principally engaged in the operation of cable television networks, and has seen strong growth on an aggressive expansion campaign.
The media firm is currently trading at 8.26 yuan, respectably ensconced within its 52-week range of 5.66-10.34 yuan.
Given his long-standing tenure as China’s “Warren Buffet,” it behooves A-share investors to pay attention to not only what Wang bought at China AMC, but also what he fancies on his own.
A short study at Wang’s recent dealings suggests the following A-share listed enterprises have helped him maintain his reputation as one of China’s premier market players.
As of end-2012, Wang was heavy into water purification play Beijing SJ Environmental (SZA: 300072), Net263 Ltd (SZA: 002467), property counter Jilin Chengcheng (SHA: 600247) and pharmaceutical firm Xiangyue Pharma (SZA: 300147).
The expected surge in demand for “clean and green” firms like water purification play Beijing SJ Environmental are part of the reason why its Shenzhen-listed shares tripled in recent months. Source: Yahoo Finance
Beijing SJ Environmental specializes in using environment-friendly new materials under independent R&D to provide solutions for the energy infrastructure industry in producing clean fuels and solving environmental issues, especially in terms of desulfurization of water resources.
For the next half decade, the new Chinese government has repeatedly said that environmental protection would be given the highest priority as part of the latest Five-year Plan.
Unsettling news such as the pig carcass fiasco in a river supplying Shanghai’s potable water have brought even more attention to the degradation of the world’s second largest economy’s natural resources.
Telecom play Net263 shot up in January on strong expected demand.
Source: Yahoo Finance
The expected surge in demand for “clean and green” firms like water purification Beijing SJ Environmental are part of the reason why its Shenzhen-listed shares tripled in recent months.
Net263 Ltd has also seen a share price spike in 2012, thanks to repeated calls by both the outgoing and incoming governments to upgrade the country’s online accessibility, speed and security.
Net263 is a telecommunications play providing integrated communication services including voice communication technology and infrastructure for internet service providers.
Property developer Jilin Chengcheng saw its Shanghai-listed shares surge over 60% in a single trading week in February on healthy real estate projects in Northeast China.
Meanwhile, Xiangyue Pharma has performed well, price-wise, after it signed a potentially lucrative tieup with US-based Kinex for promising anti-viral drugs.
