The market V-shaped reversal, the fund company again raised the tide of self purchase, and the bottom signal is now?
in the past week (March 14 to March 18), the market experienced an extreme reversal. In the first two trading days, the Shanghai Composite Index fell 7.4%, once approaching 3000 points. In the last three trading days, market confidence was significantly boosted. The Shanghai index rose 6.11%, the Shenzhen Composite Index rose 6.86% and the gem index rose 8.34%
According to incomplete statistics by Chinese reporters of securities companies, in the three trading days since Wednesday, at least six public offerings have initiated self purchase, with an amount of no less than 672 million yuan. A new round of fund “self purchase tide” has begun. According to the data, as of March 20, 49 fund managers have implemented self purchase this year, with a total scale of 1.205 billion yuan,
With regard to the recent “self purchase tide” of the fund, market participants interpret it as that A-Shares have fallen irrationally since this year. The fund company is optimistic about the future market, hoping to stabilize investor confidence and release a signal of optimism about its funds to the market through self purchase and binding with the interests of investors. However, individual investors still need to invest carefully according to asset allocation and risk tolerance.
fund “self purchase tide” strikes
On March 16, after the special meeting held by the Finance Committee of the State Council, the CSRC said that it would spare no effort to maintain the smooth operation of the capital market and put forward a number of work priorities, including guiding fund companies to purchase their own shares. A number of fund companies responded immediately and made positive moves, setting off a wave of “self purchase tide” of public funds. According to incomplete statistics by Chinese reporters of securities companies, in the three trading days since Wednesday, at least six public offerings have initiated self purchase, with an amount of no less than 672 million yuan.
On March 18, China Europe Fund announced that it would use its inherent funds to purchase its partial equity funds and fof for a total of 150 million yuan. After the completion of this investment, the total amount of partial equity funds and fofs purchased by China Europe Fund since this year will reach 260 million yuan.
On March 17, e fund announced that it had recently invested 200 million yuan in its equity funds and fof funds.
On March 16, Ruiyuan Fund announced that the company would use its own funds to re purchase its funds of no less than 150 million yuan, and promised to hold them for no less than five years.
In addition to fund companies, star fund managers are also actively participating in subscription “out of their own pocket”.
On March 17, Zhonggeng Fund announced that within 10 trading days from March 18 (inclusive), Qiu Dongrong will apply for Zhonggeng value quality of no less than 15 million yuan, Chen Tao will apply for Zhonggeng value pioneer of no less than 5 million yuan, and Cao Qing will apply for Zhonggeng value pioneer of no less than 2 million yuan.
On March 16, Feng Mingyuan, star fund manager of Cinda Aoyin fund, publicly said that he had recently purchased more than one million yuan of products under his own management.
in fact, this is not the first “self purchase wave” of public fund companies and star fund managers this year. At the end of January, more than 20 public funds, including e fund, GF fund, China Southern Fund, etc., issued self purchase announcements one after another, and a group of “top flow” fund managers also liberalized purchase restrictions, expressing their long-term optimism about the performance of the capital market
According to incomplete statistics by Chinese reporters of securities companies, since this year, fund companies and fund managers have announced that the total amount of self purchase is more than 2 billion yuan, the highest level in the same period in history. According to the data, as of March 20, 49 fund managers have implemented self purchase this year, with a total scale of 1.205 billion yuan, including 456 million yuan for equity funds, 444 million yuan for hybrid funds, 245 million yuan for bond funds and 50 million yuan for fof funds.
at present, the self purchase amount of Nanfang fund has exceeded 200 million yuan, the fund with the largest interval net purchase amount is south MSCI China A50 link a, the self purchase amount of Huatai asset management and Cathay Pacific Fund has exceeded 100 million yuan, and the funds with the largest interval net purchase amount are Huatai Zijin weekly purchase, 6-month rolling a and Cathay tech innovation board, which will be opened in two years
release which signals
According to past experience, whenever there is a sharp decline in the market or even panic, the fund is prone to a wave of self purchase. Some analysts believe that this has two main benefits: first, stabilize market confidence and correct irrational fluctuations caused by panic in the market; Second, bargain hunting and buying high-quality assets with long-term investment value at a lower price to make profits for themselves.
as for the recent “self purchase tide” of funds, market participants interpreted that A-Shares have fallen irrationally since this year, and fund companies are optimistic about the future market. They hope to stabilize investor confidence and release the signal of optimistic about their funds to the market through self purchase and binding the interests of investors
For example, Ruiyuan Fund said in a letter to the holders: fear should not occupy the heart at this dark moment that the core reason for the unexpected decline of overseas Chinese assets this round is the market’s concern about the financial decoupling between China and the United States, which was further strengthened by the Russia Ukraine war. Overseas investors are worried that China’s overseas listed companies will also become the object of sanctions, and China’s economic situation is also an important factor for overseas investors to consider.
“Choosing excellent listed companies, keeping in mind the valuation, not predicting the short-term market and feeling the cycle are our understanding of long-term value investment. 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.” Ruiyuan Fund said.
China Europe Fund believes that when the market enters the negative cycle of “falling due to falling”, it usually reflects the expectations of the most pessimists, but the extreme sentiment will eventually dissipate, and the market will eventually return to the fundamentals and return to the general expectation of China’s economic growth trend. As a professional asset management institution, on the one hand, we have seen the extreme pessimism of “Mr. market” recently. On the other hand, we have also seen the continuous improvement of the investment cost performance of good companies in this process. When the fog fades, the anchor of value will return. When the market is cold, we choose to believe in the long-term investment value of the company and choose to walk with the holders with practical actions! Thank the holders for their trust and persistence. As long as we have confidence comparable to gold, we believe we will jointly witness a new round of rising sun.
Public fund companies buy back their funds with real gold and silver, which plays an important role in boosting market confidence. However, individual investors still need to be cautious. Wang Qun hang, deputy general manager of Baijia fund, believes that “whether individual investors follow the purchase or should make a choice according to their asset allocation and risk tolerance.”
Wang Chao, a financial commentator on CCTV finance and economics, believes that investors should not simply look for the sword in the boat. He believes that as long as there is a wave of self purchase of funds, it is a signal of the arrival of the bottom of the market and the admission of investment.
In fact, through the back test data, it can be found that whenever the public fund starts the self purchase tide, the market may bottom, but it is not always the bottom. Therefore, investors should take a rational view of the self purchase behavior of the fund and regard it more as the recognition of institutional investors for the valuation of high-quality assets with long-term allocation value in the current market, rather than blindly taking it as a simple weather vane for stock speculation.
what about the future
It can be said that the special meeting of the financial commission of the State Council on March 16 gave the market a “strong shot”, and the market rebounded in the short term. Then, looking forward to medium and long-term investment, what is the view of institutional investors?
Yang Xiaosong, general manager of China Southern Fund, believes that the convening of the special meeting of the financial committee has greatly improved the confidence of the market, defused the pessimistic expectations of the market, and promoted the sharp rebound of a shares, Hong Kong shares and overseas China concept shares. With the active implementation of the decision-making and deployment of the CPC Central Committee by local governments and ministries and commissions, we believe that China’s economy can maintain steady and healthy development.
For the judgment of the current macroeconomic situation, Yang Xiaosong said that on the whole, we believe that the current macroeconomic situation in China can be summarized as short-term pressure, endogenous power and policy potential. Short term pressure refers to the structural pressure on the economy, mainly concentrated in real estate and service industry; Endogenous power means that the global covid-19 epidemic has conducted a systematic test on the industrial chain and macro mobilization ability of various countries. It should be said that China’s answer is the best, which is also the embodiment of China’s long-term economic growth power and potential; Policies have potential. Last year, China used the time window of economic recovery to reduce the macroeconomic leverage by 8 percentage points, leaving enough room for active policies this year and after.
as for the “pulse” of the market, Jinying Fund believes that after the external constraints have improved and the worries have been digested, A-Shares may return to the repair process of pricing around China’s economic fundamentals. At present, the direction of the neutral state model in Ukraine has been generally clear, and the Fed’s first interest rate hike has also been implemented as scheduled, and there is no more than expected tightening policy. On the whole, the external constraints with great uncertainty have been eased to a certain extent at the Chinese level, following the meeting of the finance committee, the central bank, the Securities Regulatory Commission and other parties made a strong statement that the direction of China’s “steady growth” policy has not changed, and the macro economy is expected to be repaired in the medium term. In addition, high-quality listed companies continue to voluntarily release the latest business situation from January to February, showing that there is still good support for the fundamentals. The changes of the above internal and external factors are evolving towards further boosting the confidence of investors in the A-share market. According to the judgment of golden eagle fund, although this round of A-share rebound will not be achieved overnight, the current equity investment may still have a good cost performance in the allocation of large categories of assets. After the gradual digestion of negative emotional factors, investors may refocus on the logic of enterprise fundamentals. The market is expected to usher in continuous repair opportunities under the continuous verification of financial report data.
As for the specific investment direction, Qiu Dongrong of Zhonggeng fund pays attention to four investment opportunities: first, finance and real estate in the large market value stocks. Second, the investment value of energy and resource stock high-quality assets. Third, small and medium cap value and growth stocks. Fourth, Hong Kong stocks include large cap value stocks, some companies with good growth and some Internet stocks.
HSBC Jinxin fund Lu Bin believes that structure is more important than position. Lu Bin said that since March, due to the concerns about the fermentation of some recent risk events, the market has undergone extremely drastic adjustment in the short term, and the rapid decline has exacerbated the emotional panic and negative feedback of investment liquidity. Under the background of high implied return rate of long-term market valuation, such short-term drastic changes are often unsustainable. At the current time point, from the perspective of one year and two years, the implied returns of many stocks have been very attractive. In the medium term, we think structure is more important than position.
Yao Zhipeng of Harvest Fund said that focusing on later investment opportunities, we are still optimistic about the excellent assets of China’s manufacturing industry in many industries, such as new energy industry chain, electric vehicles, military industry, semiconductors and other advanced manufacturing fields. Although the new energy sector has also experienced an overall correction recently, the reason is that on the one hand, due to the internal logic of market adjustment at some level, new energy performed quite well last year, and there will be short-term adjustment or consolidation at some level after rising for a period of time; On the other hand, the market is worried that the decline of subsidies, including the rise in the price of lithium carbonate, may have a certain impact on the demand level of the whole industry. Before the outbreak, we combined channel research, including macro big data and micro 4S store channel research. The feedback is that the prosperity level of this industry is high. In terms of fundamental operation, short-term prosperity and medium and long-term vision, new energy is very solid.
