As the Chinese New Year approaches, market volatility intensifies. Judging from today’s market, market pessimism continues to pervade. In the face of continuous decline, a number of public offering giants have begun to move. In recent two days, a number of fund companies have announced that they will purchase their own funds and “take over” with investors, which is equivalent to giving a “reassurance” to the market.
Obviously, today’s market has not made a positive response due to the self purchase of funds. The market fluctuated all day, the Shanghai index fell below the integer mark of 3400 points, and the gem index fell by more than 3%. The sector industry has been “killed”, and no concept sector is red.
real gold and real silver entered the market, and the public offering giants and top flow fund managers jointly shot!
In fact, yesterday afternoon, after the market came out of the “V-shaped” rebound, there were “giants” and “top flow” to release positive signals.
Based on the confidence in the long-term, healthy and stable development of China’s capital market, yesterday afternoon, China Europe Fund and Gran made a self purchase, with a total investment of 52 million to buy China Europe medical and health fund and China Europe medical innovation fund.
Hua’an fund also later announced that it plans to invest no less than 50 million self purchased partial share funds.
This afternoon, e fund announced that based on its confidence in the long-term, healthy and stable development of China’s capital market, the company invested 100 million yuan on January 27 to subscribe for the company’s active partial share public offering fund and promised to hold it for no less than one year.
Subsequently, GF fund, Wells Fargo fund, Harvest Fund, South Fund and huitianfu fund successively issued announcements and purchased their own funds.
Data show that as of January 26, more than 20 fund companies have announced self purchase this year, with a total self purchase amount of more than 550 million yuan. The self purchase amount announced by major public funds yesterday and today amounted to 642 million yuan.
take the “reassurance” and the bottom signal reappears?
Remember the beginning of the year of the ox market in 2021? Yes, before the Spring Festival of the year of the ox, the Shanghai index once broke through 3700 points. Unexpectedly, the market opened a unilateral downward path on the first trading day after the return of the holiday.
In the face of the sudden change of face in the market, many public fund companies and fund managers chose to buy against the market. According to incomplete statistics, on the occasion of market fluctuations after the Spring Festival of the year of the ox, the public fund industry is intensive. Through contrarian self purchase, a number of fund companies have purchased more than 140 million yuan in total. Highlight the concept of long-term investment.
After eating the “reassurance”, the market index also responded and ushered in the stage market after stopping the decline and shock. March 9, 2021 also became the low point at that time.
Historically, when the market is short and the adjustment rate is too fast, there will be collective self purchase by fund companies, and this wave of self purchase tide may also surge.
However, it is worth noting that although the self purchase of funds can express the company’s optimism about the fund manager to a certain extent, or the fund manager’s own confidence, and has a certain endorsement effect, this does not mean that the self purchased funds will be able to make money, nor does it mean that the self purchased funds have obvious return advantages over other funds.
fund self purchase accelerates the “emotional bottom”? Fund: early in the first quarter
This A-share market adjustment, in the view of some public funds, it may be difficult to immediately have an “emotional bottom” in the short term, but the self purchase of funds may accelerate the emergence of an emotional bottom.
Morgan Stanley Huaxin Fund said that the “bottom of sentiment” may be around the early part of the first quarter, while the “bottom of growth” is expected to appear from the first quarter to the second quarter. During the three rounds of obvious “steady growth” at the end of 2014, the end of 2018 and the beginning of 2020, the initial market performed poorly due to emotional inertia, and the growth style decreased significantly. After the relevant forward-looking indicators such as social finance, credit, infrastructure and real estate were repaired, the market tended to perform better after the improvement of market sentiment.
With the sound support of public funds and the success of stopping the decline after the purchase tide of the Spring Festival in the year of the ox, can the market reach the bottom before and after the Spring Festival in the year of the tiger? Let’s wait and see.
media review
Front page of Securities Daily: erect the backbone of a shares
Front page of Securities Times: keep the cloud open and see the moon bright
Financial investment news: A-share “standing up” needs capital and confidence
institutional view
Citic Securities Company Limited(600030) : “emotional bottom” and “market bottom” resonate, and market overshoot brings better buying points
Huatai Securities Co.Ltd(601688) : A shares are currently cost-effective, short-term disturbance does not change the medium and long-term trend
Haitong Securities Company Limited(600837) : empty energy is released, and the stock index will rebound technically at any time
