Chemicals and building materials shares have become the priority buy-in stocks for the Qualified Foreign Institutional Investors (QFII), as reported by the China Securities Journal on Monday.
One hundred and thirty-seven companies out of 1,606 companies which have unveiled their semi-annual financial reports weighed heavily in the QFII's holdings with a total investment amount of 50.7 billion yuan.
QFII added 32 companies' shares to their investment baskets in the second quarter. The 32 companies operating in sectors like chemicals include the China Jushi Co., Ltd., the Zhejiang Satellite Petrochemical Co., Ltd., the Proya Co., Ltd, the Lomon Billions Group Co., Ltd., and the Suzhou Sinye Materials Technology Co., Ltd.
The net profits of the China Jushi Co., Ltd. reached 1.267 billion yuan in the first half of the year, an increase of 25.91 percent year-on-year, according to the company's financial report.
The Southwest Securities' report said the glass fiber industries that the China Jushi Co., Ltd. operated in would have a prominent development in the near future, which will benefit the top player in the sector.
Building materials stocks, like the Huaxin Cement Co., Ltd., the Chongqing Sansheng Industrial Co., Ltd., the Sichuan Shuangma Cement Co., Ltd., and the Shanghai Fengyuzhu Exhibition Co., Ltd. were another new constituents in the QFIIs' stock baskets in this quarter.
On the other hand, consumer goods stocks were removed from the basket, especially medical stocks.
QFIIs are displaying prudent investment strategies, says the China Securities Journal, most consumer goods stocks' prices had seen their highest points by the end of May. For instance, home appliances, clothing, and biomedical shares have slipped by over 13 percent aggregately since the second half of the year, ranking the top three shares for price drops among other sectors.
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