Zhang Ling, reporter of China Foundation News
Since November, the wave of self-purchase by public, private and securities institutions has continued. Among them, China Life Security Fund and Caitong Securities Asset Management have recently officially announced the self-purchase of funds.
In this regard, industry insiders believe that institutional "real money" self-purchase can not only stabilize the market, enhance investor confidence, but also help the company's own product marketing to a certain extent. However, from the historical data, there is no obvious correlation between fund self-purchase and product performance, and investors can keep an eye on the frequent self-purchase of fund companies during the year, but they should not make an obvious "buy signal".
A number of others announced self-purchase of funds
Since October 17, after E Fangda, Huaxia, Guangfa and other leading public offerings set off a wave of self-purchases, since November, many companies have announced fund self-purchases.
On November 7, Caitong Securities Asset Management issued an announcement, saying that based on its confidence in the long-term, healthy and stable development of China's capital market and its confidence in the company's active investment management capabilities, it intends to invest 10 million yuan of its own funds to subscribe to its products in the near future.
On November 3, China Life Security Fund also officially announced its self-purchase. According to the announcement, China Life Security Fund said that based on its confidence in the long-term, healthy and stable development of China's capital market, the company will use inherent funds to invest in its hybrid public fund products in the near future, with a total proposed investment amount of not less than 50 million yuan.
It is worth noting that this is the third wave of fund self-purchase during the year. The first wave occurred in late January of the beginning of the year, and in about two weeks, 31 institutions announced self-purchases, with a cumulative amount of more than 1.8 billion yuan; Since then, in March, 26 institutions have started a second wave of self-purchases. The third wave of self-purchase began on October 17, and as of November 7, 30 institutions have announced fund self-purchase, with a cumulative amount of 2.05 billion yuan.
According to Wind data, as of November 6, a total of 145 institutions have purchased 1,030 funds since the beginning of this year, with a net subscription amount of 41.271 billion yuan. Among them, money market funds had the largest net subscription amount, reaching 35.833 billion yuan, accounting for more than 86%; The total net subscription amount of active equity funds reached RMB2.076 billion, and the cumulative net subscription amount of bond funds reached RMB1.077 billion.
In the fourth quarter, the steady growth policy has been strengthened, and investors should keep an eye on it
In this regard, Dr. Sun Guiping, senior fund analyst and senior fund analyst of Shanghai Securities Fund Evaluation Research Center, said that under the background of the shock adjustment of the domestic equity market this year, the long-term investment cost performance of equity assets has been significantly improved, and there are two main considerations for fund companies to carry out frequent self-purchase behavior recently. First, to enhance investor confidence and demonstrate its determination to share risks; Second, in order to help the external marketing of fund products, it is reflected in a financial investment behavior of fund companies in the management of their own funds.
Zhongrong Fund believes that the self-purchase behavior of fund companies can allow fund companies and fund managers to bind their interests with the interests of the people through real money, which can stabilize the confidence of the people when the market is volatile and bring a good direction to the entire market.
"With the adjustment of the market this year, the overall valuation of A-shares is low, medium and long-term or have good investment value, fund companies frequent self-purchase proves that the market has fallen to the position where fund companies and fund managers will feel that there is potential upside in the future, especially for long-term investment, A-shares or in the area worthy of continuous attention." Zhongrong Fund said.
However, regarding the frequent self-purchase behavior of fund companies during the year, Sun Guiping of the Shanghai Securities Fund Evaluation Research Center bluntly said that investors can keep an eye on it, but they should not make an obvious "buy signal".
"From the historical data, fund companies purchase new funds relatively frequently for the issuance of new funds, and do not reflect obvious timing signals; The self-purchase of existing products is usually related to adverse changes in the market environment and investors' lack of confidence in the capital market, sending a relatively positive signal to investors to 'stabilize the military spirit', but the funds that obtain self-purchase do not reflect significant performance advantages compared with funds in the same period. Sun Guiping suggested that when choosing fund products, investors should comprehensively observe the operation characteristics of fund products and the investment ability of fund managers, and choose products suitable for themselves to invest based on their own investment objectives and risk tolerance.
Zhongrong Fund believes that several major signals at this stage indicate that the market may have a higher investment cost performance. Specifically, first of all, we can see an increase in share buybacks. The number of companies that have recently released buyback plans is showing clear signs of recovery, which also means that the market may be out of the lows. Second, major shareholders have increased their holdings. Since mid-to-late October, major shareholders of listed companies have continued to issue plans to increase their holdings. At present, the net reduction scale of major shareholders of A-share listed companies has continued to decline, and has shown the characteristics of net increase in holdings in the past week. Historically, continued issuance of overweight plans and net inflows have also tended to occur at market stage lows. In addition, equity risk premiums are at a very high level, above 1 standard deviation of the three-year mean. Historical data suggests that equity risk premiums above the three-year mean plus 1-2 standard deviations may mean that the market has a clear advantage and deserves continued attention.
For the volatile changes in the market in the fourth quarter, Zhongrong Fund said that the impact of several core elements facing the market in the fourth quarter, first of all, Sino-US relations, there are unfavorable trade policies in photovoltaics, electric vehicles, biomedicine, semiconductors and other fields, making the market worried about the growth space of Made in China. Secondly, high inflation in the United States, strong employment data, and the Fed's interest rate hikes continue to exceed expectations, which has caused the global equity market to fall sharply, affecting the risk appetite of the domestic market. The repeated epidemics have made investors lack confidence in next year's economic growth. "But in fact, the decline in the market has largely absorbed these risks, the competitiveness of China's manufacturing will not be weakened by trade barriers, and the Fed's interest rate hike expectations are very sufficient, and there is less room to continue to exceed expectations." In the fourth quarter, it is expected that the domestic steady growth policy will exert force, and next year's economic expectations do not need to be too pessimistic. ”
"Looking forward to the future, we believe that the country's industrial upgrading and structural transformation will be successful, and in the process, many excellent enterprises will emerge in new energy, national defense industry, TMT, medicine and biology, new materials, large consumption and other industries." With the improvement of the securities issuance and trading system in the capital market, the optimization of the investor structure, and the practice of the value investment concept, we are full of confidence in the long-term investment value of China's economy and the A-share market. Zhongrong Fund added.
Editor: Xiao Mo