Confidence is more important than gold. Since this year, public offering and asset management of securities companies have sold their own products or thrown out large plans, and many “top stream” public offering fund managers are ready to pay out of their own pocket. In this regard, some market participants believe that public offering and asset management self purchase of securities companies are the manifestation of “bottom reading signal”.
In recent years, it is not new for public offering and asset management of securities companies to purchase their own products. In 2021, public offering and asset management of securities companies have accumulated self purchase of 5.898 billion yuan, and the self purchase amount in December was nearly 1 billion yuan. To this end, the chief securities firm also reminded investors that self purchase is conducive to boosting market confidence, but the large-scale self purchase is not equivalent to the emergence of a buying signal, so it is not suitable to follow the trend blindly.
brokerage asset management joined the self purchase army
Since this year, A-Shares have continued to fluctuate. As of March 2, the Shanghai stock index fell by 4.27%. At the same time, the fund issuance was sluggish. According to the data, 211 new funds were issued in January and February, with a share of 152587 billion, a year-on-year decrease of 12.45% and 80.6% respectively.
Based on the confidence in the long-term healthy and stable development of China’s capital market, a number of public fund companies, including BOC fund, Qianhai Kaiyuan and GF fund, have thrown out self purchase plans one after another, and some companies have made generous self purchase of equity funds of 100 million yuan, which has aroused strong concern in the market for a time.
During this period, the asset management of securities companies also “showed no weakness” and started self purchase one after another. Like public offering, asset management and self purchase of securities companies tend to equity products. On February 28, Huatai asset management said that it would use its own funds of no more than 50 million yuan to invest in the equity public funds of the company. On February 21, CAITONG asset management invested 50 million yuan of its own funds to purchase the company’s equity and fixed income public funds. Dongzheng asset management said that it will purchase its partial share fund with its own capital of 50 million yuan within 30 trading days from January 28, with a holding time of no less than 3 years. The self purchase reasons issued by securities companies are not only based on the confidence in the long-term healthy and stable development of China’s capital market, but also include the confidence in the active investment management ability of their respective companies.
It is worth mentioning that since February 9, Donghai Securities said it planned to use its own funds to participate in its two collective asset management plans, with a cumulative amount of no more than 4 million yuan. On February 27, Xingzheng asset management said that it had recently invested a total of 30 million yuan in the company’s hybrid collective asset management plan with inherent funds. According to the reporter of Securities Daily, Huatai asset management, CAITONG asset management and Dongzheng asset management all hold public fund licenses, while Donghai securities and Xingzheng asset management have not obtained licenses yet. The above two products of Donghai securities are large collection public offering and transformation products, and Xingzheng asset management also has many large collection public offering and transformation products.
In this regard, Chen Mengjie, chief strategist of YueKai securities, said in an interview with Securities Daily: “Public offering and asset management self purchase of securities companies are mainly for the purpose of boosting market confidence and promising the long-term prospects of their products. On the one hand, after the sharp decline of the stock index, the valuation cost performance is prominent, which has been attractive from the perspective of long-term layout, but public offering and asset management self purchase of securities companies are not equal to the bottom of the market; on the other hand, institutions promise to hold them in the medium and long term through self purchase and merger, and will The deep binding of self-interest and investors will help boost market confidence and directly and indirectly promote the operation of follow-up fund products. “
public raised self purchased fund of 765 million yuan
Public offering and self purchase of products by asset management of securities companies are not new. They belong to “routine operation” in recent years. Chen Mengjie told reporters: “From the perspective of the stage of self purchase of funds in history, most of them occurred under the background of sharp market correction, low investor sentiment and continuous cold of new development funds. Under the background of market adjustment, institutional self purchase formed a positive feedback effect, thus improving market liquidity. In the past decade, the scale of institutional self purchase funds has shown an upward trend, reaching nearly 6 billion yuan in 2021.”
According to the reporter of Securities Daily, in the first two months of this year, there were 28 public offering and self purchase of 43 fund products, with a total of 765 million yuan (no asset management of securities companies), an increase of 47.12% year-on-year (540 million yuan in January and 225 million yuan in February); Among them, public offering and self purchase equity funds, hybrid funds, bond funds and fof funds were 355 million yuan, 315 million yuan, 75 million yuan and 10.019 million yuan respectively.
In terms of performance, since this year, the median rate of return of equity funds and partial equity hybrid funds has been – 8.66%, and the median rate of return of flexible allocation funds has been – 6.14%. Among the public offering and self purchase funds, 4 are equity funds and 18 are partial share hybrid funds. Excluding 2 new funds, all outperform the median rate of return of the same type of products.
From 2021, 98 public offerings and asset management of securities companies have taken place self purchase, with a cumulative self purchase amount of 5.898 billion yuan. Among them, the self purchased hybrid funds, equity funds, bond funds, fof funds and QDII funds were 1.743 billion yuan, 1.696 billion yuan, 1.477 billion yuan, 900 million yuan and 800153 million yuan respectively. In December 2021, public offering and asset management of securities companies have started substantial self purchase, with a total of 40 companies purchasing 985 million yuan. Among them, Huaxia Fund purchased 150 million yuan and Guotai Junan Securities Co.Ltd(601211) asset management purchased 120 million yuan. The amount of self purchase in 2020 was 4.152 billion yuan, 2.867 billion yuan in 2019 and 3.268 billion yuan in 2018.
Is it an effective signal to copy the bottom behind the self purchase tide of funds and securities companies Huaxi Securities Co.Ltd(002926) deputy director and chief strategist Li Lifeng said that when the market falls to a certain extent or lasts for a period of time, the self purchase tide of public funds is often one of the signals to build the bottom of the market; For example, from February to April 2020, public funds made large net subscriptions, and the A-share market warmed up in April. However, the large-scale self purchase of public funds is not equal to the buying signal; For example, in March 2018, the net subscription scale of public offering in that month reached 634 million yuan, but in 2018, under the disturbance of a series of risk factors, the market accelerated to the bottom. Until the end of 2018, the “policy bottom – emotional bottom – market bottom” appeared one after another, and the inflow of foreign capital and public funds accelerated, A-Shares began a new round of rise.
Chen Mengjie told reporters: “For investors, it is necessary to take a rational view of the behavior of institutional self purchase funds. Although self purchase of funds is conducive to boosting market confidence, compared with the overall quantity and product scale, the quantity and capital proportion of self purchase are relatively small, and the direct impact on market liquidity is limited. In addition, historically, the boom of self purchase of funds is not equal to the bottom of the market Often for a variety of purposes, the emphasis is mainly on the long-term investment value of products. Therefore, investors also need to fully combine their own situation and should not blindly follow suit. “
In early February, China Thailand asset management issued a document saying, “whether fund companies or fund managers, their self purchased funds should be locked for at least one year. Therefore, the large-scale self purchase of real gold and silver will at least not be knowing that there are tigers in the mountain and leaning towards Hushan. However, a rational view of the precise timing ability, including professional investors, is also a reality that we have to face up to.”
