At the end of December 10, Contemporary Amperex Technology Co.Limited(300750) , Shenzhen Mindray Bio-Medical Electronics Co.Ltd(300760) and many other stocks were suddenly plunged at the end of the trading, which puzzled many investors.
Among them, the increase of “battery Mao” Contemporary Amperex Technology Co.Limited(300750) narrowed from 3.03% to 0.97%, and Tianqi Lithium Corporation(002466) fell from 7.7% to 5.63%, while Shenzhen Mindray Bio-Medical Electronics Co.Ltd(300760) , Bloomage Biotechnology Corporation Limited(688363) and other stocks even changed from rise to fall in the late trading, with a large diving range. It is worth noting that these stocks are newly included after the adjustment of CSI 300, CSI 500 and other indexes. Therefore, some people in the industry speculate that the above-mentioned changes in the late trading may be related to the effectiveness of the index adjustment.
According to convention, the inclusion of individual stocks in the index will trigger a large number of passive funds tracking the index to buy the individual stocks, thus raising the stock price. However, this time, many individual stocks suddenly suffered a late dive, which is different from market common sense. A person from the institutional product department told the Chinese reporter of the securities firm that this phenomenon is indeed very abnormal. He speculated that there are two possibilities: one is that the wrong order of the relevant index products of a large institution causes the Oolong index; Another possibility is that arbitrage funds are latent.
It is worth noting that, unlike the smashing of Contemporary Amperex Technology Co.Limited(300750) and Shenzhen Mindray Bio-Medical Electronics Co.Ltd(300760) at the end of the session, Kweichow Moutai Co.Ltd(600519) suddenly rose, turning red from the original decline of nearly 1%, to close at 2090 yuan, up 0.17%.
However, some ETF fund managers in Shanghai speculate that this is more like a behavior of foreign investors taking the opportunity to adjust their positions, because Chinese ETFs will not do centralized trading at the end of the day. As the above fund managers speculate, recently, Contemporary Amperex Technology Co.Limited(300750) has frequently heard the news of being reduced by foreign capital.
a batch of blue chips dived late
On December 10, Contemporary Amperex Technology Co.Limited(300750) suddenly dived at the end of the trading day, narrowing the increase from 3.03% to 0.97% to close at 639.95 yuan. At the same time, its trading volume was also enlarged at the end of the trading day. The transaction amount of call auction was 1.686 billion yuan, and the transaction amount of the whole day was 13.738 billion yuan.
Similar situations also occurred in Shenzhen Mindray Bio-Medical Electronics Co.Ltd(300760) , Tianqi Lithium Corporation(002466) , Bloomage Biotechnology Corporation Limited(688363) , Angel Yeast Co.Ltd(600298) , Cathay Biotech Inc(688065) , Zhejiang Hangke Technology Incorporated Company(688006) and other stocks. These stocks had obvious changes in the late trading, which not only enlarged the trading volume, but also greatly reduced the stock price.
Among them, Shenzhen Mindray Bio-Medical Electronics Co.Ltd(300760) was still up 2.7% at about 14:50, but it was suddenly smashed at the end of the day, closing down 0.11% on the same day. The transaction amount of call auction was 377 million yuan, and the trading volume was also enlarged; Bloomage Biotechnology Corporation Limited(688363) rose 1.38% to 0.5%; The increase of Tianqi Lithium Corporation(002466) narrowed from 7.7% to 5.63% in the late trading, and the increase fell by more than 2%.
Insiders speculate that this may be related to the adjustment of CSI 300, CSI 500, Shanghai 180 and other indexes. In late November, China Securities Index Co., Ltd. issued an announcement on adjusting several index samples, and these adjustments took effect just after the market closed on December 10. Among them, Contemporary Amperex Technology Co.Limited(300750) , Tianqi Lithium Corporation(002466) , Shenzhen Mindray Bio-Medical Electronics Co.Ltd(300760) , Shanghai Bairun Investment Holding Group Co.Ltd(002568) mentioned above were included in the CSI 300 index in this adjustment, Cathay Biotech Inc(688065) , Zhejiang Hangke Technology Incorporated Company(688006) and other stocks were transferred into the CSI 500 index, Bloomage Biotechnology Corporation Limited(688363) were included in the SSE 180 index, and their share prices plunged at the end of the trading.
However, according to the Convention, the inclusion of individual stocks in the index will trigger a large number of passive funds tracking the index to buy the stocks, so as to raise the stock price, which is called the index effect in academia. This time, many stocks suddenly suffered a late dive, which is different from market common sense.
A person from the institutional product department told the Chinese reporter of the securities firm that this phenomenon is indeed very abnormal. He guessed that there are two possibilities: one is that under the programmed trading, the relevant index products of a large institution place wrong orders, resulting in the common occurrence of Oolong index in relevant stocks, but this possibility is small; Another possibility is that arbitrage funds are latent. When the index adjustment causes capital purchase and the rise of stock price has been predicted, some funds will take the opportunity to make profits in the late trading and smash the stock price.
However, some ETF fund managers in Shanghai speculate that this is more like a behavior of foreign position adjustment, because Chinese ETFs will not do centralized trading at the end of the day.
“Different from the habit of overseas funds to make late adjustment, Chinese ETFs mostly focus on maintaining stability, will relax the adjustment period to 2 ~ 3 days, and rarely focus on doing mass trading in the last few minutes to prevent triggering risk events.” The ETF fund manager said: “so I think the probability is caused by foreign position adjustment. When they see that China’s mainstream index includes these stocks into constituent stocks, foreign investors who want to reduce their holdings of these stocks will take the opportunity to sell them and take profits.”
reduction of the largest overseas Chinese equity fund Contemporary Amperex Technology Co.Limited(300750)
As the above fund managers speculate, recently, Contemporary Amperex Technology Co.Limited(300750) has frequently heard the news of being reduced by foreign capital.
According to the data, Contemporary Amperex Technology Co.Limited(300750) was net sold by northbound funds on December 10, which was one of the largest single day net sales of the stock since it was included in the Shanghai and Shenzhen Stock connect.
Prior to this, Morningstar data showed that Allianz Shenzhou A-share fund also significantly reduced its holdings of Contemporary Amperex Technology Co.Limited(300750) by 18.58% in October, but Contemporary Amperex Technology Co.Limited(300750) is still its largest heavy position stock. Allianz Shenzhou A-share fund, with a scale of about 77.8 billion yuan, is the largest overseas Chinese stock fund. As of June 30 this year, Allianz Shenzhou A-share fund was the fund with the most Contemporary Amperex Technology Co.Limited(300750) .
Combined with the stock price trend, Allianz Shenzhou A-share fund’s operation of Contemporary Amperex Technology Co.Limited(300750) has obvious characteristics of high selling and low absorption. Allianz Shenzhou A-share fund has reduced its holdings of Contemporary Amperex Technology Co.Limited(300750) for three consecutive months since June. When the share price of Contemporary Amperex Technology Co.Limited(300750) corrected by 10.08% in August, Allianz Shenzhou A-share fund chose to increase its position in September and reduce its holdings when Contemporary Amperex Technology Co.Limited(300750) returned to the rising trend in October.
In addition, Morningstar data show that another heavyweight asset management giant, “technology catcher” Baiji’s Chinese A-share fund also reduced its holdings of Contemporary Amperex Technology Co.Limited(300750) in September, with a reduction range of 4.13%.
However, JPMorgan’s Morgan fund, China A-share Opportunity Fund, made different choices in October. The fund increased its position on Contemporary Amperex Technology Co.Limited(300750) by 100%.
index adjustment is not over
It is worth noting that November and February are the intensive adjustment period of the index every year. Although many of the above-mentioned Chinese mainstream indexes have been adjusted, another large number of heavy index adjustments will be ushered in for A-Shares next week.
On December 1, FTSE Russell, the world’s second-largest index compiling company, announced the quarterly review change of FTSE China A50 Index, FTSE China a150 index, FTSE China A200 index, FTSE China a400 index and FTSE China a small cap stock index. The change will take effect after the closing on December 17, 2021 (next Friday).
As a world-famous index compiling company, FTSE Russell index company will focus on the market every time it adjusts its A-share constituent stocks. Specifically, there are four main reasons. First, international capital has widely recognized China’s A-share market; Second, the index adjustment is conducive to the continuous inflow of incremental funds; Third, stabilize the company’s valuation; Fourth, as the anchor of asset allocation, investors can help form the direction of value investment by tracking the change of index.
This time Eve Energy Co.Ltd(300014) , Haier Smart Home Co.Ltd(600690) , Zhangzhou Pientzehuang Pharmaceutical Co.Ltd(600436) are newly included in FTSE China A50 Index, and Anhui Conch Cement Company Limited(600585) , Midea Group Co.Ltd(000333) , Sany Heavy Industry Co.Ltd(600031) are excluded. On the whole, traditional cyclical stocks have become the most excluded objects, and the transferred companies are mostly concentrated in power equipment, electronics and other industries, which occupy an important position in China’s economic transformation and upgrading.
The data show that up to now, there are only three public funds tracking the FTSE China A50 Index, namely Castrol FTSE China a50etf, Huian FTSE China a50etf and huarunyuan FTSE China a50a.
Insiders expect that, similar to the above changes in individual stocks, the adjustment of FTSE China A50 Index will also cause the change of positions of some passive index funds, resulting in fluctuations in the short term, but in the long term, the newly incorporated enterprises will get more passive capital allocation.
In fact, before that, MSCI’s index adjustment also caused changes in the late trading of relevant stocks. On November 30, the MSCI semi annual index took effect after adjustment, and several stocks fluctuated sharply in the call auction at the end of the day.
Among them, the transaction amount of Zhejiang Yongtai Technology Co .Ltd(002326) late call auction was 220 million yuan, accounting for 10% of the total transaction amount of the whole day, and the share price jumped from 61.52 yuan to 62.75 yuan. In addition, China Life Insurance Company Limited(601628) jumped by more than 1%, and the newly included mscia stock index components such as Cecep Wind-Power Corporation(601016) , Ginlong Technologies Co.Ltd(300763) , Yongxing Special Materials Technology Co.Ltd(002756) , Flat Glass Group Co.Ltd(601865) all rose at the end of the day; At the same time, Financial Street Holdings Co.Ltd(000402) , Offcn Education Technology Co.Ltd(002607) , Qianhe Condiment And Food Co.Ltd(603027) and other MSCI call auctions excluding the subject fell by more than 1%.
A startling scene appeared: “ningwang” was smashed, Maotai was violently pulled, and there were many changes! Foreign capital buys nearly 50 billion yuan a week
The last auction was smashed. What’s the next step for “ningwang”, the largest net sale of foreign capital in a single day?
(brokerage China)
