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Wan Qiong: The valuation may have reached the bottom range of historical valuation, and the overall valuation of the industry is expected to continue to repair

author:Money Based Magician

At noon on January 27, 2022, the Boshi CSI Global China Education ETF (QDII) fund traded at 0.364, down 20% from the beginning of the year.

Education ETFs are likely to be the most decimated funds to fall before the Spring Festival in 2022.

Of course, this is not the first time so tragic, Boshi Education ETF is a QDII fund listed on the Shanghai Stock Exchange on June 17, 2021, focusing on investing in the education industry. By the end of last year, the net value of the fund was only 0.4513. It was established for nearly half a year, with a cumulative decline of 54.87%.

Wan Qiong: The valuation may have reached the bottom range of historical valuation, and the overall valuation of the industry is expected to continue to repair

Educational ETF performance since its inception Data source: Choice

If you say, the ETFs of China Interconnection, Hang Seng Internet and Hang Seng Technology Index have long been known as the "flying knife man" where they gather, bringing together all kinds of investors such as value investment, reverse investment, risk fighting and knife head licking, focusing on investing in overseas technology concept stocks. Then look at the Boshi Education ETF, which is definitely a gathering place for the "flying knife man" who specializes in refining education investment cheats.

Wan Qiong: The valuation may have reached the bottom range of historical valuation, and the overall valuation of the industry is expected to continue to repair

Education ETF Asset Size Data Source: Choice

Wan Qiong: The valuation may have reached the bottom range of historical valuation, and the overall valuation of the industry is expected to continue to repair

Education ETF Fund Shares Data Source: Choice

Moreover, more brave "flying knife men" are coming, and the size of Boshi Education's ETF has doubled from 653 million shares to 1.323 billion since the end of September 2021. The net value reached 613 million, and the net value continued to grow.

At the same time, according to the fourth quarter report of the Education ETF, at the end of November last year, one institution held more than 20% of the fund, and still held 10% of the share by the end of the year.

Wan Qiong: The valuation may have reached the bottom range of historical valuation, and the overall valuation of the industry is expected to continue to repair

Top 10 Heavy Stocks in Education ETFs Data Source: Choice

Today, most of the top ten heavy stocks in education ETFs continue to bleed and are unbearable.

Wan Qiong: The valuation may have reached the bottom range of historical valuation, and the overall valuation of the industry is expected to continue to repair

20220127 top 10 heavy stock stock prices data source

Although the sword and light sword shadow and the blood flowed like a river, it still could not crush and could not stop the will of the "flying knife man" to fight.

In 2022, will these "flying knife men" be able to kill a bloody road, and will they spiral up from the trough? Can you survive the sword at the peak of the gains?

Fund manager Wan Qiong analyzed in the report of the fourth quarter: "The education industry is an industry greatly affected by policies in 2021, and at present, the negative policies of preschool education, compulsory education and extracurricular training have been cleared, the valuation of the education industry may have reached the bottom range of historical valuation, and the favorable policies of higher vocational education/private higher education have been superimposed, and the market sentiment has gradually repaired." In the future, events that reflect positive fundamental changes such as performance and mergers and acquisitions of industry companies are expected to become the main driving force for the upward trend of the sector's stock prices in 2022, and the overall valuation of the industry is expected to continue to repair. ”

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