A shares are “green all over the market, and public funds have come up with” real gold and silver to show confidence.
After China Europe and Hua’an fund companies announced the launch of 50 million yuan self purchase on January 26, on January 27, in the face of the continuous decline of the market, based on their confidence in the long-term healthy and stable development of China’s capital market, a number of head public funds announced their self purchase plans one after another.
In just two days from January 26 to 27, a total of 17 public funds announced relevant information, with a self purchase amount of 1.2 billion yuan.
Not only public offering and self purchase, but also 10 billion private placement giants. Hanhe capital and Hongshang assets successively announced self purchase of 160 million!
Historically, when the market fluctuates, there will be collective self purchase by fund companies. The self purchase tide of fund companies is intended to give investors more firm confidence, also shows that the public offering is optimistic about the long-term investment value of the A-share market, and responds to the role of institutional investors as “market ballast and fixer” with practical actions.
15 public offering and self purchase of 1.1 billion
On January 27, the penultimate trading day before the Spring Festival, public funds set off a tide of self purchase in the afternoon, and large fund companies started self purchase in large amounts.
According to the reporter’s statistics, as of 23:00 on January 27, 15 public funds announced that they planned to use their own funds for self purchase, including e fund, Wells Fargo fund, GF fund, Harvest Fund, South Fund, huitianfu fund, Huaxia Fund, Ruiyuan fund, Cathay Pacific Fund, China Merchants Fund, Dacheng Fund, Xingzheng global, Jingshun Great Wall, ICBC Credit Suisse Rosefinch fund, etc., with a total planned self purchase amount of up to 1.1 billion yuan.
Among the 15 public funds announced on Thursday, huitianfu Fund temporarily ranked the highest in the industry with a self purchase amount of 200 million yuan; In addition, Ruiyuan fund, e fund and ICBC Credit Suisse fund all plan to purchase more than 100 million yuan.
Among them, the self purchase commitment locking period of Ruiyuan fund is the longest, and the holding time of the subscription part with inherent funds shall not be less than 5 years. Southern Fund promises to hold for more than 3 years, and many other companies promise to hold for no less than one year.
In fact, on the previous trading day, that is, January 26, a number of fund companies have used inherent funds to purchase their own products.
Among them, the China EU fund will purchase a total of 50 million yuan of China EU medical and health hybrid and China EU medical innovation stocks with its own funds and hold them for more than three years. From January 26 to February 25, Hua’an fund applied for the partial share public offering fund of the company with its inherent funds, with a total contribution of no less than 50 million yuan.
If the self purchase amount of the two funds is added, 17 fund companies have started large self purchase on January 26 and 27, with a total self purchase amount of 1.2 billion yuan.
the tide of public offering and self purchase shows confidence in the future market
In its announcement of self purchase, the fund company said that self purchase was “based on confidence in the long-term healthy and stable development of China’s capital market”.
Insiders said that the self purchase reflects the company’s trust in its fund managers and the confidence of A-share and fund investment. The short-term adjustment of the market is a good opportunity to layout high-quality assets and shows the confidence of public fund managers in the future.
Tianxiang investment consulting Fund Evaluation Center pointed out that firstly, as the main force with positions accounting for the growing proportion of the circulating market value of A-Shares (accounting for 9.20% by the end of the fourth quarter of 2021, an increase of 1.2% compared with the middle of 2021, the data source is Tianxiang investment consulting), public funds take the initiative to assume the responsibility of stabilizing market sentiment.
Secondly, fund companies can establish a positive image through “self purchase”, which can not only show the sense of responsibility of financial institutions, but also express their confidence in their own management ability or purchased products.
Another third-party analyst said that the self purchase of funds by fund companies was mainly motivated by “marketing”, “maintenance” and “investment”. The self purchase of funds by fund companies can strengthen the trust of investors, help the fund maintain or even expand its share, and is conducive to the “marketing” of the fund; It can also “maintain” fund operation and prevent smaller funds from being refunded; In addition, it can revitalize the company’s own funds and increase the company’s non operating income.
self purchase or accelerated emotion bottom appears
In the view of some public funds, this wave of market adjustment of A-Shares 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.
In China’s securities market, the last time there was a similar collective increase occurred on February 4 after the Spring Festival in 2020, that is, the second trading day after the epidemic. At that time, the A-share market plummeted due to the impact of the epidemic. More than 20 fund companies such as e Fangda, huitianfu, GF, Dongfanghong and Hua’an announced to subscribe for 2 billion funds one day, It has played a very important role in stabilizing the confidence of the capital market.
Looking back on the trend since 2020, we will find that taking the Shanghai and Shenzhen 300 index as an example, the time of batch self purchase is a market low in that year.
Morgan Stanley Huaxin Fund believes that the “bottom of sentiment” may be around the beginning 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 performance was poor 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 pessimism often performed better after the improvement of market pessimism.
Citic Securities Company Limited(600030) also said that the “policy bottom” has been made clear, the “emotional bottom” is coming, and the “market bottom” is gradually approaching. It is suggested to continue to focus on the “two low” layout of blue chips to meet the starting point of the market in the first half of the year.
However, some market analysts believe that the market will not immediately change the market rhythm of fund companies’ self purchase. Although self purchase can improve market confidence, the key to market strength is to adjust and end itself.
10 billion private equity Hanhe capital invested 100 million yuan
average subscription of all fund products under its management
On January 27, Hanhe capital, a 10 billion private placement company, announced that based on its long-term firm optimism about China’s capital market and full confidence in its own investment management ability, as a firm practitioner of ultra long-term value investment, Hanhe capital plans to use its own funds of 100 million yuan to purchase all fund products under its management on average. The subscription date is the latest fixed open day of each fund product since the announcement date.
Hanhe capital said, “This self purchase is first of all based on our firm belief in the long-term development of China’s capital market. At the same time, we also have full confidence in our investment ability. On the one hand, it reflects our corporate responsibility as a leading enterprise in the industry; on the other hand, it also allows customers to see more long-term and make long-term investment with a more firm vision of value.”
It is understood that with the concept of ultra long-term value investment, Hanhe capital is committed to looking at the investment target from the perspective of industrial capital, and is committed to finding and investing in companies representing future advanced productivity. With the long-term development of excellent enterprises, Hanhe capital benefits from the improvement of long-term internal value of enterprises.
Hongshang assets and employees purchased more than 60 million
Fund Jun learned that Hongshang asset company and its employees also purchased more than 60 million yuan this week.
Hongshang assets said that the growth sector is the eternal source of excess returns, but many traditional sectors such as consumption, medical treatment, real estate, finance, chemical industry and other industries have a high margin of safety after full adjustment, and the valuation is very attractive. With the easing of the tension of the international supply chain, the release of new investment capacity in 2021 and the correction of the double carbon policy, the marginal decline of the upstream cost probability will usher in a profit inflection point for the middle and downstream enterprises represented by advanced manufacturing industry. “We will make a balanced allocation between the two, achieve both attack and defense, and strive to provide our investors with good returns on the premise of controlling risks.” Hongshang assets told reporters.
It is reported that Hongshang assets was jointly founded by an excellent team from public funds and Sequoia Capital, a global venture capital giant. The company was established in October 2013 and is the only equity securities asset management platform of Sequoia Capital in China.
Luo Xiaochun: deeply confident in China’s long-term economic development
The Spring Festival is coming, but the recent performance of the stock market is not optimistic. Under the dual pressure of China’s weak economic momentum and external policies, the market fell in panic and investors’ buying sentiment was low. However, more than a dozen public funds have urgently announced large-scale self purchase in the past two days, saying that short-term fluctuations may lay a foundation for medium and long-term opportunities for high-quality investment targets, and are full of confidence in the long-term healthy and stable development of China’s capital market.
Luo Xiaochun, founder of Hanhe capital, previously stressed that “we have deep confidence in China’s long-term economic development.” He believes that China has the world’s largest domestic demand market. Under the dual trend of high-end manufacturing upgrading and consumption upgrading, the macroeconomic momentum is still strong. There are many short-term market factors, which will be affected by liquidity, external environment, epidemic development and other factors. However, in the long-term dimension, the core factor that really affects the market is China’s economic fundamentals themselves.
Luo Xiaochun analyzed that in 2022, China will still be one of the fastest growing countries in the world’s major economies. Under such a background, a large number of listed companies with global leading standards will emerge in all walks of life. Now China has born the world’s largest enterprise by market value in some fields. I believe this trend will become more and more obvious in the future. As a fund manager, Hanhe hopes to grow together with these excellent listed companies and share the dividends brought by China’s long-term economic development, which Hanhe will adhere to in the past nine years, now and in the future. Although it is inevitable to experience short-term market fluctuations in the process, we believe that as long as we insist on doing the right thing, the long-term cumulative results will be very good.
In terms of investment strategy, in 2022, Hanhe capital will continue to adhere to the ultra long-term value investment strategy, excavate the investment targets whose long-term embedded value is far greater than the current market price, and obtain the income of improving the internal value of the enterprise through long-term holding.
Luo Xiaochun said that there are many very good investment opportunities in the current market, including the upgrading of high-end manufacturing industry, consumption upgrading under the background of the rise of national tide, digital transformation, energy conservation and emission reduction, domestic substitution, new infrastructure and so on. China’s per capita GDP has exceeded US $10000, and our comparative advantage has shifted from demographic dividend to engineer dividend and brand dividend. I believe the market opportunities in the next 10 years will be different from those in the past 10 years.
In terms of industries and sectors, Hanhe always adheres to the coverage of the whole industry, will not be limited by the existing thinking framework, and excavates as many investment targets in line with our stock selection concept as possible. “We believe that it is the intrinsic value of the enterprise that ultimately determines the market price of a company.” Luo Xiaochun said.
In terms of risk, Luo Xiaochun believes that investment risk is more from buying investment targets that do not match their value at too high prices. Although the trend of China’s economic development is very good, it is inevitable that enterprises will fall behind in the process of development, which is also in line with the objective law of economic development. Hanhe hopes to find companies with real core value drivers. If the companies held in our portfolio are always significantly undervalued compared with the price, the risk exposure will be at a very low level.
private institutions prefer to hold shares for the holiday
Although the current market performance is poor, in the view of many private placement, the adjustment is a good layout opportunity, and most private placement institutions prefer to hold shares for the holidays. The survey results of private placement network show that 71% of private placement choose to hold shares for the holiday, and think that the track stocks have been fully adjusted, and the probability of systemic risk under loose monetary policy is small; Only 29% of private placement believe that it is difficult to have trend opportunities at present, so it is recommended to wait and see.
Huang Yi, director of Hongfeng asset investment, said that recently, the capital side has successively released positive signals to accelerate the net inflow of funds to the north. After the festival, whether from the perspective of macroeconomic and liquidity environment, or from the perspective of the relative cost performance of the current stock market valuation, if there are no extreme circumstances, the market is worth looking forward to during the two sessions, and it is considered that the success rate of shareholding during the long Spring Festival holiday is large.
For the future market, Huang believes that from the macro events outside China and the factors affecting short-term risk preference in the early days of institutional adjustment, the market is now adjusting or has come to an end, and the valuation of the stock market has improved.
Xingshi investment said that although the stock market performed poorly at the beginning of this year, there were no major negative factors in the macro fundamentals, and the market began to stabilize. The restlessness in spring may be late but will not be absent.
From the perspective of liquidity factors, the loose monetary policy tone has been confirmed, and the liquidity will remain abundant for some time in the future. In addition, at present, the signal of “steady growth” is clear, and the effect of fiscal policies such as appropriate advance of infrastructure investment will gradually appear. The market’s doubts about the “steady growth” policy are disappearing, and the market’s risk preference may gradually increase.
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