Guest introduction: TENG Lyrican, Cornell University, Master of Applied Statistics, assistant fund manager of the index investment department of the Harvest Fund, joined Harvest in June 2020, mainly engaged in all kinds of indexes and ETF-based index products related to research work

Recently, the concept of Xinchuang has been pursued by the market, how to understand the "big Xinchuang" theme? How to understand the theme of "Great Credit Creation"? Where are the investment opportunities? After hardware, why will software become the main line of investment in the computer field? The next half of the competition for new energy vehicles is software? In this regard, the Harvest Fund Teng Lyrican to share with you a wonderful point of view.

Ten Lyric said, under the theme of Xinchuang, software investment is more worthy of attention, the concept of Xinchuang is expected to become the biggest main line of the computer in 2023, domestic software is expected to become the most benefited industry, it is worth paying attention to. Technology in the first half of the competition in the chip, the second half of the turn to the software. The development model of "hard before soft" in the development of new energy vehicle industry is gradually verified.

It said, new energy vehicles 20-22 years of rapid market is still unforgettable, with the battery upgrades, hardware technology advances, production increased, the car itself is more and more full of competition. New energy vehicles are also more often called smart cars, software is likely to become the future of the automotive industry revenue of the new burst point, new energy vehicles, the second half of the competition may be in the software.

The following is the essence of the text:

1,Caritas Fund Teng Lyrican: Domestic software plate is worth sustained attention

Question: What is Xinchuang?

Teng Lyran: Xinchuang is the information technology application innovation industry, referred to as "Xinchuang". As long as it is related to the information technology application innovation industry can be included in the "Xinchuang". Hardware and software services centered around computers are two of the main components of the IT industry.

IT infrastructure, basic software, application software, information security and other industries are the specific composition of the CCTV industry. Backed by the logic of domestic substitution, CCTF has become a major windfall for investment.

Question: Is the Cintron market a flash in the pan? Can I still buy it?

Teng Lyran: The market is currently dominated by big ticket, blue chip style, financial real estate rebound momentum is relatively strong, for small ticket, growth style has a certain suppression. The boards related to Xinchuang, such as chips, software, etc. are industries with a strong growth style, and therefore affected. Coupled with the previous letter of the market faster pace, more fierce, such as a period of time before the software in the letter of the hotspot of the letter of the rapid rebound of about 30% in just 1 month or so, objectively need some time to recuperate.

But this time the rebound, but also let us see the elastic potential of the software sector, because the software sector market value of the overall small, so the industry elasticity, once the market rebound, the magnitude of the rebound will be greater than the market as a whole.

Long-term, the concept of domestic substitution of strong certainty of expectations, the future will be the era of great development of Xinchuang. The urgency of independent control in the complex international situation is further highlighted, domestic substitution is the core contradiction of the next decade of science and technology industry, unstoppable.

On the one hand, the policy of Xinchuang industry will continue to force, on the other hand, due to the current chip, software and other Xinchuang industry, the localization rate is low, the future of domestic substitution of space is very large.

As an example, the current chip design assistance software, system design assistance software are almost all from abroad, the share of this type of domestic software only accounted for 0.6% of the global market share, the substitution of the space is very large, and this process of improving the localization rate is a long struggle, for the Xinchuang industry, for a long time to come, is both a challenge but also an opportunity, it is worth the long-term configuration.

Question: What are the relevant investment grips for the CCTV theme?

Teng Lyran: Domestic substitution is the core logic of the great development of CCTV, the concept of domestic substitution, of course, the chip is a very major component of CCTV. However, we believe that under the CCTV theme, software investment is more worthy of attention. Chip hardware class directly by the impact of the complex international situation, the short-term uncertainty is greater, relative to the uncertainty of the chip industry, software services is the CCTV industry in the certainty of a stronger sub-industry, or for the breakthrough of domestic substitution.

And, we look at the historical performance of the software sector, in recent years there has been no such as chips, new energy vehicles, such as the hot market, in the growth of the plate belongs to the relative stagnation of the plate. The market view that the concept of Xinchuang is expected to become the biggest main line of the computer in 2023, domestic software is expected to become the most benefited industry, it is worth paying attention to.

2, Harvest Fund Teng Lyran: new energy vehicles in the second half or software innovation

Question: growth track industry a lot, compared to the chip, 5G, photovoltaic, etc., software seems to be less attention in the past, then the software in the investment will have the potential?

Teng Lyran: Hard three years, soft three years, business model and then three years, this is the core logic of investing in science and technology stocks: the electronic technology industry first has the foundation of the hardware, the next is the rise of the software program, and finally is the landing of the business model, this is the science and technology cycle to follow the order of the industrial advancement and investment. Hard even if the hardware chip, soft is software.

The big era of investment in chips has opened, software will still be far away? Technology first half of the competition in the chip, the second half, it is the turn of software.

"Hard before soft" development model in the new energy vehicle industry, the development is gradually verified, the new energy vehicle 20-22 three quarters of the rapid market must be unforgettable, with the battery upgrade, hardware technology advances, production increases, the car itself is more and more full of competition, new energy vehicle prices have also been adjusted downward, cheaper and cheaper, everyone gradually The price of new energy vehicles has also been adjusted downward and become cheaper and cheaper, and we gradually realized that the profit of selling a set of auto-pilot software may be higher than that of the whole vehicle, which is also known as "selling cars at a loss and earning money from software" new business model.

New energy vehicles are also called more intelligent cars, software may become the future of the automotive industry revenue of the new burst point, which also gives us a direction, new energy vehicles, the second half of the competition may be in the software.

Question: What are the specific policy supports? How big is the impact of the policy on the development of the software industry?

Teng Lyran: Software industry-related policies frequently, the policy initiated a high level, September and October high-level through the important meeting continued to mention the digital economy, Xinchuang, net security-related topics to focus on.

Last year, the beginning of a very intensive policy-oriented: March 2021 China introduced the latest 14th Five-Year Plan, the core industries of the digital economy has become the core of China's scientific and technological innovation to add new indicators. October: the Central Politburo study focused on the development of the digital economy, to the positioning: the depth of the impact of the digital economy "unprecedented", is "changing the global competition", is the "digital economy", the "digital economy" is "unprecedented", is "changing the global competition".

Such a tone, the 14th Five-Year Plan in the field of science and technology of national special plans have also been introduced: November 30, the Ministry of Industry and Information Technology issued the "14th Five-Year Plan" for the deep integration of informationization and industrialization development plan "14th Five-Year Plan" for the development of software and information technology services. According to these plans, by 2025, China's above-scale software business income to exceed 14 trillion yuan, an average annual growth rate of more than 12%.

Policy attitude tends to be clear, the policy side is expected to be a relatively long-term software investment continued to catalyze the factors, along with the implementation of specific policies to promote the opening of the software sector boom upward space. The next five years is the "big letter to create" the development of the key period, the development of space is broad.