News from sources showed that some products of Lingjun investment fell below the warning line. Lingjun investment confirmed to reporters that the unit net value of Lingjun Lingguang quantitative hedging enhancement related products was 0.849 yuan, lower than the early warning line. Lingjun investment said that as of April 14, the net value of unit custody of related products was lower than the early warning line by 0.85 yuan, but the cumulative net value of related products was 1.01 to 1.02 (the products had dividends during operation), and the cumulative net value of products was still higher than 1.02 yuan At the same time, the equity market has fluctuated greatly since this year. In the same period, the CSI 300 index fell 15.16%, the CSI 500 index fell 16.75% and the CSI 1000 index fell 20.61%. However, the withdrawal range of Lingjun related products was 9.66%, which still realized the function of flexible hedging. At this stage, the company will carry out relevant investment operations in strict accordance with the product contract. It is reported that Lingjun investment management scale exceeds 50 billion yuan
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A number of 10 billion private placement companies want to reduce the product warning line and stop loss line
On April 12, the reporter of China Securities Journal learned from various channels that at present, a number of 10 billion private placements are negotiating with custody institutions to reduce the net value early warning line and stop loss line of some products.
Insiders said that considering that the relevant risk control mechanism will trigger “passive forced position reduction” once triggered, if the net value early warning line and stop loss line of private placement products can be “not set” or “set low”, it will significantly reduce the impact of passive position reduction and liquidation of private placement products on the market, which is conducive to the stability of capital in the market.
several private placement companies seek “negotiated reduction”
The person in charge of a 10 billion private placement disclosed to the China Securities Journal on April 12 that he was recently discussing with a main channel to reduce the net value early warning line and stop loss line of related products. At present, the unit net value warning line and stop loss line of relevant products issued by the private placement in this channel are 0.85 yuan and 0.80 yuan respectively. The “preliminary negotiation goal” of this time is to “reduce the stop loss line to as close as possible to 0.6 yuan”. The private placement source also revealed that the product holders sold by the institution in third-party channels are relatively “more risk tolerant”; The risk preference of customers in securities channels is “relatively cautious”; The risk appetite of bank channel customers is “relatively lowest”.
On April 12, a large custodian broker confirmed to the reporter of China Securities Journal that “recently, more than one 10 billion private placement is negotiating with us to reduce the product net value early warning line and stop loss line, including a well-known private placement institution headquartered in Beijing.”
According to the monthly performance monitoring report of China’s private placement institutions released by Chaoyang Yongxu on April 10, the 3377 private placement institutions with stock strategy monitored by the institution lost an average of 11.01% in the first quarter of this year, and the proportion of private placement of stocks with positive returns in the same period was less than 20%. In terms of scale, among the six groups of less than 500 million yuan, 500 million-1 billion yuan and 10 billion yuan, the average loss of 10 billion private institutions in the first quarter was 11.41%, with the worst performance. Among them, old 10 billion private placements such as Danshui spring investment and yuanlesheng assets, as well as cutting-edge 10 billion private placements such as alluvial assets and Xitai investment, all suffered large losses of about 20% in the first quarter.
In addition, according to the reporter of China Securities Journal, in the market adjustment since this year, especially in the first half of March, some new products of 10 billion private placement have been subject to mandatory position reduction due to their net value touching or falling through the early warning line and stop loss line.
a “double-edged sword”
For the establishment of risk control systems such as net worth early warning line and stop loss line in the securities private placement industry, Chen Yihe, investment director of Wanfeng friends, said that as a “double-edged sword”, the early warning line and stop loss line, on the one hand, clarify the safety margin of investment, help managers to “comprehensively consider” at the beginning of investment and find appropriate investment opportunities and allocation schemes within the scope of risk constraints, Reasonably arrange positions and risk control plans in advance; On the other hand, once extreme market conditions occur in the market, resulting in the net value of products touching the stop loss line, the fund manager will be forced to reduce positions and liquidate, so as to “aggravate market volatility”, which is not conducive to the consistency of the implementation of the value investment principle.
Not long ago, head quantitative private equity firm Mingyu investment publicly said: “at present, most of China’s mainstream quantitative products are quantitative long product lines, which are also the backbone of the market.” As a well-known quantitative private placement in the industry, Mingyu investment has been clearly opposed to the establishment of net value early warning line and stop loss line for quantitative long products.
Some private placement insiders pointed out that after the continuous adjustment of the market, private placement products that touch the original product net value early warning line and stop loss line often face many constraints in operation. For example, they have to significantly reduce the position operation, and the difficulty of “net value up” will be significantly increased. In addition, if the net value warning line and stop loss line of private placement products can be “not set” or “set low”, it will be more conducive to the stability of on-site funds and minimize the impact of passive forced position reduction caused by early warning and stop loss on market operation and capital.
“customer trust” becomes the key
For the latest development of many 10 billion private placement companies seeking to reduce the product net value early warning line and stop loss line recently, some people in the asset management circle gave an interpretation of the “neutral position”.
The person in charge of a third-party institution said on the 12th that under the background of poor performance of the industry since this year, a considerable proportion of private placement customers may be more difficult to accept this move, especially when some customers have been “very injured” in private investment, their confidence is already low. Moreover, the current market has not fully improved, which will affect the acceptance of customers.
The person also stressed that if the private placement product falls to the stop loss line, it is already a failure of risk control to some extent, or at least it proves that the manager’s prior risk control is not in place, which has hurt the customer’s confidence to a certain extent. After all, managers have many ways to prevent net product value from falling near the stop loss line.
In the current market and industry environment, some insiders suggest that private placement managers can use their own funds to further negotiate with customers on the net value early warning line and stop loss line. Overall, after the net value of some head private placement products has significantly retreated, the customer’s trust in the manager may become the key to the success of reducing the net value product early warning line and stop loss line. (source: China Securities Journal)
