The Spring Festival is coming, and the stock market will be closed. How to use spare money to make money during the long holiday is a topic of great concern to many investors.
The so-called “red packets” are issued during holidays. Due to the impact of liquidity, the price of funds may rise during holidays. If you operate a national debt reverse repurchase to obtain risk-free returns and earn some holiday red envelopes, it is also a small welfare for investors.
Combined with the arrangements for the Spring Festival holiday, this Wednesday (January 26) and Thursday (January 27) are the best time points for the operation of national debt reverse repurchase. If the operation is divided into two times, only one-day reverse repurchase can earn 11 days of interest in total, and the funds can be received before the opening on February 7, which can be used for other investments.
best operation time point
During the Spring Festival of the year of the tiger, A-Shares were closed from January 31 to February 4 and opened normally on February 7. This means that before Friday, investors can obtain the interest during the Spring Festival holiday by operating the reverse repurchase of treasury bonds. For the reverse repurchase of treasury bonds, investors can obtain up to 11 times the investment period as long as they operate properly. That is, lending one-day treasury bonds for reverse repurchase can earn 11 day interest.
Only from the interest calculation time, the best operation dates of this year’s Spring Festival National Debt reverse repurchase are January 26 and January 27. Specifically, on January 26, investors can lend one-day reverse repo (Shanghai reverse repo referred to as gc001, code 204001; Shenzhen reverse repo referred to as r-001, code 131810) and receive one-day interest first. The funds are available before trading on January 27. Although they cannot withdraw cash, they can conduct stock trading. On January 27, investors continued to lend one-day reverse repo and reap another 10 days of interest. The two operations earn 11 days of interest in total.
Investors should be reminded that the operation of national debt reverse repurchase depends not only on the number of interest days, but also on the real-time capital price (interest rate). For example, on January 2, 2019, the yield of national debt reverse repurchase once soared to 20%. If you encounter this opportunity, you can act decisively regardless of the interest bearing days.
As of the closing on January 25, the annualized yield of one-day reverse repo varieties in Shenzhen stock market was 2.68%, and the yield of one-day reverse repo in Shanghai stock market was 2.73%.
Although this level of return can not be compared with previous years, it has also outperformed many monetary funds. Data show that as of January 24, the average 7-day annualized interest rate of more than 400 monetary funds included in the statistical scope of the whole market is mostly below 3%, and many goods based annualized interest rates are lower than 2%.
We should also pay attention to the operation before the festival. Usually after 3 p.m., the reverse repo rate will plunge. Although from the perspective of never affecting stock trading, you can wait for the closing before participating in the reverse repurchase operation, if there is no good stock investment opportunity on the same day, investors can consider completing the order at their satisfactory annualized interest rate before 2 p.m.
operation and stock trading
As simple as
Although the reverse repurchase of treasury bonds sounds tall, the actual operation is as simple as buying and selling stocks. Investors only need to have a stock account.
The specific operations are as follows: during the trading period (up to 15:30), enter the trading page from the trading menu bar in the stock account, and click the “national debt reverse repurchase” button to start the operation. Next, select a variety, select an interest rate, fill in the investment amount, and click the order button.
For most stock investors, they only need to participate in the one-day reverse repurchase transaction every day to ensure that the funds are available before the next trading day and will not affect the operation of buying and selling stocks.
Investors also need to avoid some misunderstandings when operating national debt reverse repurchase. First, some investors think that the threshold of participating in reverse repurchase is very high. Because the reverse repurchase threshold of the Shanghai Stock Exchange is 100000 yuan, many investors fail to meet the requirements. However, there are actually two “versions” of national debt reverse repurchase, and the threshold of Shenzhen stock exchange is only 1000 yuan.
Second, the issue of centralized orders with large amounts of funds. According to the experience of senior reverse repo traders, it is best to place orders in batches. As the interest rate of reverse repo changes greatly within one day, it is impossible for investors to guarantee to buy the higher interest rate of the day at one time. Placing orders in batches will avoid this problem. Especially for investors with large amount of funds, placing orders in batches can capture the higher interest rate in a day with a high probability.
Third, some investors believe that earning some interest is not enough to pay handling charges. In fact, although reverse repo has a little handling fee, it is very low – 1 yuan per 100000 yuan per day, with daily interest and a ceiling of 30 yuan.
listed companies are also investing in
It is understood that many listed companies are also keen on national debt reverse repurchase. Taking advantage of the high capital interest rate before the Spring Festival, the participation of idle funds in the reverse repurchase of treasury bonds has become a new way for many listed companies to revitalize their idle funds.
On January 22, Shenzhen Riland Industry Group Co.Ltd(300154) announced that the company held a board meeting on January 21, deliberated and approved the proposal on using some idle self owned funds for treasury bond reverse repurchase business, and agreed that the company and its holding subsidiaries would use idle self owned funds of no more than 110 million yuan for treasury bond reverse repurchase business without affecting the normal operation of the company.
In this regard, insiders said that on the one hand, listed companies need to revitalize the idle funds on their books and improve the use efficiency of funds; On the other hand, the varieties of national debt reverse repurchase belong to financial products with ultra-low risk and strong liquidity. The return of national debt reverse repurchase before the Spring Festival is high, which can be regarded as a good place for short-term financial management of idle funds.
