The sea flows, showing the true colors of heroes. Since the new year, A-Shares have been adjusted rapidly, and market confidence has been seriously frustrated. In the face of the severe situation, after the public offering, star private placement has also been launched!
On the evening of January 28, the well-known 10 billion quantitative private placement – Magic Square quantitative official announced that it would purchase 350 million yuan of the company’s products with employees and shareholders, becoming the most generous institution in this round of self purchase. Magic square also clarified the recent rumors about quantitative position closing in the market.
It is worth noting that before magic square, a number of stars have made private placement, and Jinglin, Han and Hanhua will also invest 100 million yuan each to apply for their own products.
magic square quantification: purchase 350 million yuan of its own products
On the evening of January 28, magic square quantitative announced that out of its firm optimism about China’s economy and long-term confidence in the capital market, the company, all employees and shareholders decided to do their best to support the A-share market with their own funds. After coordination, all employees and shareholders will raise no less than 150 million yuan of their own funds within three trading days, and the company will raise no less than 200 million yuan of their own funds within 10 trading days. All the above 350 million yuan will apply for the company’s products and invest in the equity assets of the A-share market.
quantitative closing rumors are rumors
Magic square quantitative also said that recently, it was rumored that the collective closing of quantitative institutions led to a decline in the market. The company communicated with several large-scale managers in the industry and said that there was no such matter. I hope you don’t believe the rumors.
A shares fell sharply in a row. Recently, there have been a number of negative arguments against quantification. For example, a few days ago, people called for an immediate stop and thorough investigation of the quantitative transaction compliance in the official account. The so-called “quantitative liquidity led by the whirlpool led to the collapse of the market sentiment.” Some investors even suspect that quantitative private placement is actively smashing the market.
what’s the real situation? According to the understanding of Chinese journalists of securities companies in the industry, the strategies of quantitative institutions related to A-Shares or stock index derivatives mainly fall into several categories:
First, the most mainstream index enhancement strategy in the market. Quantitative institutions hold a large number of stocks through quantitative stock selection and use medium and high frequency trading to thicken the income. This kind of strategy is pure long strategy, and there is no short position in the whole position. The index strengthens the long-term full position, and the goal is to defeat the index. Therefore, it will not take the initiative to sell stocks when the market falls.
Second, market neutral or quantitative hedging strategy, holding stock index futures while holding stocks. Such strategies will generally maintain a long short balance in exposure, and will not close out stocks in one direction when the market fluctuates.
The third is CTA strategy, which mainly trades commodity futures, and a small part will involve stock index futures. CTA strategy tracks the market trend and may short stock index futures when the market falls, thus indirectly affecting the spot market. However, in terms of volume, the proportion of funds in quantification is very small, and the actual impact on the market is very limited.
“The formulation of stopping quantitative trading is very terrible. It is roughly estimated that the amount of A-Shares held by Chinese quantitative institutions may be as high as hundreds of billions. If they are concentrated, the consequences will be unimaginable.” Insiders said.
private placement of many stars
Before magic square, a number of stars have made private placement. Previously, Jinglin, Han and Hanhua also invested 100 million yuan each to purchase their own products.
The 100 billion private placement of Jinglin assets announced on January 28 that based on the firm confidence in China’s economic fundamentals and the long-term healthy and stable development of the capital market, Jinglin assets and relevant fund managers will apply for the company’s fund products within 30 trading days from the date of the announcement, with a total amount of no less than 100 million yuan and a holding time of no less than three years.
Another star private placement Hanhe Hanhua also announced on the 27th 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, the company plans to use its own funds of 100 million yuan to purchase its fund product shares.
what signal does collective repurchase release?
With the continuous correction of a shares, public funds took the lead in launching “self purchase”. According to the statistics of Chinese reporters of securities companies, in the past three days, 25 public offerings and asset management of securities companies have initiated self purchase, with an amount of 1.58 billion. At the same time, Liu Gesong, Zhang Kun and other “top stream” have also liberalized purchase restrictions.
public offering and private collective self purchase are not only the expectation of the market after the year, but also the response to the recent continuous adjustment of a shares. Institutions are also optimistic about the market after the year.
Guotai Junan Securities Co.Ltd(601211) said that whether for economic growth or market operation, the “cause” of confidence is more important than the “result” of growth. Look at the stock market at this moment and be optimistic after the new year.
Citic Securities Company Limited(600030) said that first, the short-term adjustment of the market deviated from the trend of China’s monetary easing. External changes such as the loose exit of the Federal Reserve will not restrict the “me dominated” Chinese policy style, nor change the trend of long-term additional allocation of A-Shares by foreign capital. Secondly, the short-term adjustment of the market has also deviated from the fundamental trend supported by the policy. The time point of the greatest downward pressure on China’s economic growth has passed. After the currency’s first force exceeds expectations, the relay of other ministries and local governments is expected to form a policy synergy, and the “policy bottom” has been clarified. Finally, the policy exit path of the Federal Reserve in the first half of the year has been clear, the sensitivity of US stocks and US bonds has been reduced after full response in the early stage, and the actual risk of overseas markets is expected to be small during the long holiday. To sum up, under the resonance of “emotional bottom” and “market bottom”, the overshoot of A-Shares has brought better buying points for the market in the first half of the year.
China Securities Co.Ltd(601066) in the research report, it is also pointed out that from the macro perspective of economic growth, external policies, capital flow and relative allocation value, the allocation value of A-Shares after adjustment begins to appear and can be gradually optimistic. China’s economy is at the bottom stage. Under the tone of steady growth, whether it is the total growth rate or the industrial structure, continuous improvement on the margin is a high probability event. Looking forward to 2022, the RMB exchange rate is expected to remain in a strong range, and the general trend of foreign capital inflow into A-Shares will not change. In addition, this year, although the real estate industry is expected to stabilize and rebound on the basis of last year’s downturn, the probability of rapid and sharp rise in house prices is still small, and A-Shares will continue to enjoy alternative dividends in 2022.
