Mr. Zhang's team achieved nearly 50% returns in 2018, despite a 30% decline in the A-share index, with a public product yield of 68% in 2019, and twice ranked first in the same type of private fund strategy according to the Investment Express rankings since the first half of the year.
personal contribution
In 2018, Phoenix TV interviewed Mr. Zhang Wei, General Manager of Huamei International Investment Group. When asked about investment advice for the public, Mr. Zhang Wei stated that the country has proposed a transformation and upgrading of China's economy from quantity to quality. For our economy to develop towards high-quality growth, it is inevitable that the allocation of our resources needs to be adjusted in a better direction. In this regard, Mr. Zhang Wei is very optimistic about emerging industries, such as the Internet of Things, 5G, and new energy. He stressed that if investors want returns, they should embrace emerging industries and align their investment layout with the country's industries. On December 28, 2019, the first investment annual meeting of Huamei International Investment Group was held in Guangzhou. Zhang Wei, Chief Investment Officer of Huamei International Investment Group, stated in his speech that China's economy has a series of advantages compared to developed countries, which is conducive to China's transformation towards a quality-oriented economy. In terms of investment strategy, he recommended using the methods of ‘asset allocation + macro hedge’ and ‘primary market + secondary market’ to navigate through bull and bear markets. He pointed out that in 2020, there is an opportunity for improvement in PMI and PPI, and there is a rebound potential for bulk commodities. It is necessary to allocate to gold and silver, with silver having greater elasticity than gold.
On September 28, 2020, Zhang Wei, Chief Investment Officer of Huamei International Investment Group, stated that the global macroeconomic situation in 2020 presents a ‘stagnant surplus’ characteristic. On the one hand, there is stagnation or even recession in overseas economies; on the other hand, there is global monetary surplus and excess production capacity, leading to asset price bubbles and continuous rise in global debt. In terms of investment strategy, emphasis should be placed on asset allocation across different classes, risk diversification, and effective hedging. Zhang Wei first proposed the phenomenon of ‘stagnant surplus’ and pointed out that it is different from the ‘stagflation’ that occurred in US history. Although the ‘stagnant surplus’ phenomenon also involves economic stagnation or recession, there has not been an obvious inflation. He stated that in 2020, under the backdrop of the global epidemic, the excessive circulation of money did not lead to sustained economic growth, but instead drove up the bubble in global asset prices. The heavy debt has increased the leverage of various countries, and negative interest rates have appeared for the first time in history, making the ‘stagnant surplus’ phenomenon more prominent.
In 2020, New Fortune, together with Huaxi Securities, launched the ‘Private Equity Interview’ section, presenting the investment insights of private equity tycoons and the growth path of outstanding fund managers. Zhang Wei, Chief Investment Officer, Secretary of the Investment Decision-making Committee, and General Manager of the Securities Business Department of Huamei, was interviewed. Zhang Wei stated, 'In terms of investment allocation, we have expanded from single equity investment to mainly asset allocation across different classes, with a focus on macro hedging. Under this strategy, when the market encounters systematic risks, Huamei can still maintain a relatively good rate of return, thanks to our proprietary investment strategy and strong research capabilities. In the past three years, the company's performance has been outstanding. In 2019, the nationwide macro strategy ranking on the private equity ranking website was 8th, and the ranking in the first three quarters of 2020 was in the top 10. In Huaxi Securities' ‘Jinhua Cup,’ we have consistently ranked first or second overall.'
He also pointed out, 'Huamei's main investment strategy is asset allocation across different classes combined with macro hedging, including equities, commodities, financial futures, bonds, and other varieties. When the market experiences intense volatility, Huamei adopts hedging measures to guard against systematic risks and ensure excellent performance at different stages. In the stock market, the company has allocated to many emerging industries in recent years, such as future strongholds like new energy vehicles, photovoltaics, and biomedicine. Previously, at different stages, we conducted systematic research and allocated to gold and silver, crude oil, and stock index futures. Scientific allocation is made according to different environments, aiming to achieve consistently good performance regardless of bear or bull markets.'
On December 26, 2020, at the 2021 Global Economic Situation Analysis and Investment Strategy Seminar and the second annual investment meeting of Huamei International Investment Group, in his speech on “Everything is Money - From ‘Gold Standard’ to ‘MMT,’ How will Asset Prices Evolve under the Background of ‘Stagnant Surplus’ Economy,” he pointed out the trend of the peak of the monetary cycle and recommended adopting asset allocation across different classes combined with macro hedging to construct the best investment strategy for value preservation and appreciation.
On July 16, 2021, the second ‘Jinhua Cup’ private equity live trading competition launch ceremony and the first competition awards ceremony of Huaxi Securities were held in Hangzhou. Zhang Wei, Chief Investment Officer of Huamei International Investment Group, as a representative of the award-winning private equity, also shared his insights.