The Zhitong Finance App learned that CITIC Securities released a research report saying that in September, global technology was still dominated by shocks, hardware was relatively dominant, and interest rates rose or constrained valuation expansion; energy and resource products failed to continue the global resonance in August; and consumption and real estate only improved in some markets or segments. In terms of style, the undervaluation style is picking up. The high profit factor is relatively strong in most markets, and high growth is weak overall. Currently, there is no consistent main line market at the industry level. Investors pay more attention to profitability and valuation safety margins, showing certain defensive attributes.
Global market industry comparison: Technology as a whole showed turbulence in September. Among them, technology equipment had a relative advantage in many markets, but overall software and IT services were weak; resource products changed from consistent cross-market strength in August to market differentiation; consumption and real estate showed only partial improvements. Overall, the global industry is still dominated by structural rotation, and there is no consistent main line market.
Technology is still dominated by shocks, hardware is relatively dominant, and rising interest rates may limit valuation expansion. Technology equipment received 6.59%, 4.42%, 4.18%, and 1.96% of industry factor earnings in the US, ASEAN, South Korea, and Japan, respectively, compared to -0.57% in Greater China; only the US and South Korea achieved small positive returns for software and IT services; the remaining three markets were still negative. Long-term interest rates are currently rising. For example, the yield to maturity of the 10-year US Treasury benchmark note rose from 4.75% at the end of August to 5.28% at the end of September. At the same time, there are still expectations of further interest rate hikes during the year, which may limit the expansion of valuations in the technology sector.
Energy and resource products failed to continue their global resonance in August, and there was a clear differentiation between different markets. Only Korea and ASEAN achieved positive sector factor returns for fossil energy, 12.56% and 2.38%, respectively; for mineral resources, only ASEAN received 1.00% positive returns, while the US, Japan, and South Korea achieved positive returns of -8.02%, -6.81%, and -6.18%, respectively. ASEAN renewable energy received 18.25% of industry factor gains, but the US and South Korea are still negative. Energy and resource products changed from consistent cross-market strength in August to market differentiation.
Consumption and real estate have been partially restored, but industry performance still lacks consistency across markets. Retailers achieved positive sector factor returns of 1.97% and 1.64% in ASEAN and Greater China alone. Cyclical consumer services were negative in all five markets; real estate only received 4.87% of positive sector factor returns; the remaining four markets were still negative. This month's improvements in consumption and real estate were only seen in some markets and segments.
Global Style Factor's performance in September: undervaluation, high profit are relatively superior, and high growth is relatively weak, showing certain defensive attributes.
The undervaluation factor yielded returns of about 3.8%, 2.9%, and 2.4% in Japan, South Korea, and Greater China, respectively; the high profit factor yielded returns of about 6.8%, 1.0%, 0.9%, and 0.7% in the US, Greater China, ASEAN, and South Korea, respectively. The positive earnings market increased from one to four in August. The high growth factor was negative in all four Asian markets, and the US was basically flat. CITIC Securities believes that the global market's relative emphasis on profitability and valuation levels has increased this month, showing certain defensive attributes.