Recently, the volatility of the global market has intensified, and A-Shares have also undergone phased adjustments. Today’s meeting of the financial committee has stimulated market confidence, and the stock indexes of the two cities have experienced a rare big rebound.
Despite the recent downturn in market risk appetite, some fund companies have joined the self purchase team based on their confidence in the long-term and stable development of the A-share market. On March 16, Ruiyuan Fund announced that the company planned to purchase its own funds with an amount of no less than 150 million yuan.
Market analysts pointed out that the large-scale self purchase of public funds will inject incremental funds into a shares, which shows the institutional confidence in the long-term healthy and stable development of China’s capital market and helps to stabilize market sentiment. The active self purchase of public funds can also be regarded as a signal of the phased bottom of the stock market.
Ruiyuan fund plans to purchase no less than 150 million yuan
On March 16, Ruiyuan Fund issued a notice that the company will use its own funds to purchase its public funds within 10 trading days from March 18 (inclusive). The total amount to be purchased shall not be less than 150 million yuan and the holding time shall not be less than 5 years.
Ruiyuan Fund said that the core reason for the bear market of overseas Chinese assets, especially the more than expected decline in recent months, is that the market is worried about the financial decoupling between China and the United States, which has been further strengthened by the Russian Ukrainian war. Foreign investors are worried that China’s overseas listed companies will also be the object of sanctions, and China’s economic situation is also an important factor for foreign investors to consider.
The concerns about macro-economy, including real estate, consumption, services and investment, are short-term factors except that real estate is a long-term factor.
For the recent continuous decline of A-share market and Hong Kong stock market, Ruiyuan Fund believes that with the continuous decline of A-share and Hong Kong stock market, pessimism spreads, and the decline has become the reason for the continued decline, but it is difficult to predict the market trend by simple linear extrapolation. The more pessimistic, the more confidence should be.
According to Ruiyuan fund, when the stock price adjustment far exceeds the internal value adjustment, it means that the expected potential rate of return in the future will rise significantly, but the premise is that investors can judge the internal value of the enterprise relatively accurately. Choosing excellent listed companies, keeping in mind the valuation, not predicting the short-term market and feeling the cycle are Ruiyuan fund’s understanding of long-term value investment.
“In the face of great pressure and temptation, excellent value investors must be able to overcome greed and fear, otherwise they will fall into the dilemma of knowing countless truths but still living a bad life. The best way to overcome human weaknesses is to learn from history and a long-term perspective.” Ruiyuan fund finally pointed out that even if the time and degree of market irrationality exceed many people’s imagination, we should not let fear occupy our hearts. We should believe that our country and people can think about the stars and sea in the future.
self purchased by several fund companies
In addition to Ruiyuan fund, since this year, with the sharp decline of the market, many fund companies have joined the self purchase camp, and equity funds have also resumed large subscription.
On March 9, YONGYING Fund announced that it plans to use 30 million yuan to purchase its own funds. On the same day, Wanjia fund also announced that it would invest 50 million yuan to purchase its partial share fund within one month from the date of the announcement.
Before the Spring Festival holiday this year, fund companies such as e fund, GF, huitianfu, Fuguo, Nanfang and harvest released their self purchase plans. After the Spring Festival holiday, Penghua Fund, BOC fund and Great Wall Fund followed up one after another.
From the perspective of self purchase scale, huitianfu fund and Nanfang Fund ranked first, with self purchase of 240 million yuan and 200 million yuan respectively. The data show that the funds with the largest purchase amount since huitianfu fund and South Fund this year are huitianfu MSCI China A50 interconnection ETF and South MSCI China A50 interconnection ETF connection a respectively, with an amount of about 200 million yuan.
In addition, fund managers have also relaxed the restrictions on large subscription. The HSBC Jinxin smart manufacturing pioneer fund and HSBC Jinxin core growth fund managed by Lu Bin, the “stock based champion” in 2020, have raised the business limit of subscription, conversion and transfer in and regular fixed investment from 1000 yuan to 10000 yuan since March 9.
In 2021, Qianhai open source public utility industry stock fund and Qianhai open source new economy hybrid fund managed by “double champion” Cui Chenlong also increased the subscription ceiling from 30000 yuan and 50000 yuan to 1 million yuan respectively from February 28.
The e fund blue chip selection fund and e fund high-quality selection fund managed by 100 billion Zhang Kun have adjusted the restrictions on the amount of large subscription and large conversion into business since March 9, from the previous 10000 yuan to 50000 yuan.
Market analysts pointed out that under the changing market environment, in order to deal with the pressure of fund redemption, powerful fund companies start self purchase, which is conducive to improving the investment confidence of the market, reducing the pressure of centralized redemption by investors and sending a positive signal to the market.
market stabilized
On the 16th, boosted by the meeting of the financial committee, A-Shares and Hong Kong shares soared across the board. Hong Kong auto stocks and technology stocks, which had fallen deeply, made a sharp counterattack, and BiliBili, ideal automobile, Tencent holdings, meituan and Alibaba rose one after another.
On March 16, the financial stability and Development Commission of the State Council held a special meeting to study the current economic situation and capital market problems. The meeting was presided over by Liu He, member of the Political Bureau of the CPC Central Committee, vice premier of the State Council and director of the finance committee, and comrades in charge of relevant departments attended the meeting.
China Industrial Securities Co.Ltd(601377) research believes that this special meeting directly points to the main contradiction of the market and “suits the remedy to the case” to strengthen confidence. Overall, internal and external risks are gradually easing. The most panic time is over, and the market is expected to usher in a phased repair window in the next month.
In terms of operation strategy, China Industrial Securities Co.Ltd(601377) suggests that, on the one hand, the scientific and technological growth has reached the bottom area, and the emotional repair window can find the target with uncertain performance for deep rebound; On the other hand, the “steady growth” continued to exert its power, and the allocation benefited from the financial, real estate and other sectors with strengthened policy expectations. In addition, the market repair window focuses on securities companies with stronger flexibility.
Ping An Securities said that affected by many negative factors, the capital market has ushered in a rapid and substantial adjustment since March, especially China concept stocks and Hong Kong stocks. The meeting of the Finance Committee of the State Council coincides with this background. The meeting timely responded to the market’s concerns in four aspects: macro economy, real estate, China concept shares, Hong Kong shares and industry supervision, and resolved the market’s excessive concerns about risks. Market confidence has regained, and follow-up policies are also worth looking forward to.
Sealand Securities Co.Ltd(000750) research points out that the rapid adjustment of the market since this year is essentially the result of the interweaving of a variety of negative factors. The network effect of information dissemination causes the stacking of bad news, which leads to the possibility of overshoot in the market. From the follow-up interpretation, it is almost certain that the Fed will raise interest rates by 25bp in mid March. After the interest rate increase is implemented, the Fed will adopt the monetary policy idea of “walking and watching”, and the most tense time of tightening expectations has passed. The time when the intensity of the conflict between Russia and Ukraine was the highest has probably passed, and there are signs of easing the positions of all parties. The sanctions on Russian energy are in form rather than substance. The end of China’s policy appears, and the tone of protecting the market is clear. After the substantial adjustment in the early stage, the valuation level of the market has decreased significantly, and a good cost performance has emerged.
