A-share turnover exceeds trillions of dollars. Only a large wave of incremental funds enters A-shares.
Although the hearing of witnesses was sometimes affected by the epidemic situation, the first trading day of the Year of the Rat A shares changed seriously, but the release of panic and the relief of market liquidity problems were gradually restored, and market confidence was gradually repaired.
During this period, multi-channel funds actively poured into A shares-Kitakami funds known as “smart money” are one of them.
In addition to “smart money”, a large wave of incremental funds will soon enter the A-share market!
A few days ago, FTSE Russell stated that the expansion of the third part of the A-share division originally scheduled for March this year will proceed as scheduled.
Some experts point out that the current funds tracking 深圳桑拿网 the FTSE Russell Global Stock Index System are about 1.
7 trillion US dollars, of which the size of passive index funds account for about 80% to 85%, so it is expected to bring about 25 billion passive incremental funds in the short term.
Moreover, according to experts’ analysis, there will be a large wave of incremental funds outside of A shares this year. How much is it? Just follow the witness and listen to Jun.
A shares will welcome another billions of “live water” FTSE Russell’s third step of increasing A’s plan has not been affected by the epidemic.
It is understood that after the close of New York on February 21, that is, at 5:00 am on February 22 (Saturday) Beijing time, the FTSE Russell will announce the first phase of the third-stage A-share split arrangement.
According to the plan, FTSE Russell Grain, the world’s second largest index company, has stated that it will replace A shares with its global stock index system. The A share division plan will be divided into three steps, namely June 2019, September 2019 and March 2020.Month; after the implementation of these three steps, the A-share split ratio will be 5%, 15%, and 25% of the investable portion, respectively.
Therefore, this time the A-shares exclusion of FTSE Russell’s factor ratio adjustment was increased from 15% to 25% and will take effect in March.
Zhongshan Securities Chief Economist Li Zhan according to the announcement, after the merger of the FTSE Russell Index Phase I and Phase III A-share split arrangements, the proportion of A-shares in emerging market indexes will become the former.
4% increased to 5.
57%, the ratio of the global index will go from 0.
34% increased to zero.
The current funding for the FTSE Russell Global Equity Index System is about 1.
$ 7 trillion, of which the size of passive index funds accounts for about 80% to 85%, so it is expected that about 25 billion passive incremental funds will be brought in the short term, and the inflow of passive incremental funds will benefit market sentiment and provide equityCome more with investment funds.
Zhang Jun, chief economist of Morgan Stanley Huaxin Securities, transformed into FTSE Russell ‘s third split A-share expansion and was not affected by the epidemic. The new alternatives are the Russell Index ‘s fractional stocks and pharmaceutical-related industries expected to receive revenue inflows.
And the non-bank, banking, home appliance, and computer industries, which have a higher allocation ratio, have been increasing, and they are also expected to obtain higher capital inflows.
Out of recognition of China ‘s economic growth and China ‘s determination to reform and open up, the following international index will increase the pace of A-share weight to maintain steady progress: In response, China benefits from the continuous adjustment of its own economic institutions, monetary policy andFiscal policy has successively released policy dividends, and its gradual release of economic development potential and alternative stable development is expected to attract continuous inflow of funds from overseas institutions.
At the same time, capital returns of scale have attracted continued foreign inflows.
At present, China’s capital market is estimated to be relatively relative, and the increasingly reasonable pricing of financial markets will also continue to increase the weight of value investment. Foreign countries will continue to flow into China under the attraction of high capital gains.
Smart money gradually net inflows during the year 765.
3.9 billion yuan On February 19, the Shanghai and Shenzhen stock exchanges totaled 10,388.
1.5 billion, return to the trillion mark.
The total net inflow of northbound funds was 37.
The net inflow of Shanghai Stock Connect was 24.
3.0 billion yuan, with a net inflow of 13 on the Shenzhen Stock Connect.
4.2 billion yuan.
Oriental Fortune.com statistics show that in terms of turnover, since February 3, the enthusiasm of northbound funds to flow into the market has increased, with a net inflow of 199 on February 3.
3.2 billion, a new high since November 27, 2019.
On February 6, net inflows again exceeded the 10 billion mark to 135.
8.6 billion yuan.
From the perspective of capital flow, as of February 19 this year, the total net inflow of northbound funds was 765.
3.9 billion yuan, the net inflow of Shanghai Stock Connect was 364.
6.4 billion yuan, Shenzhen Stock Connect net inflow of 400.7.5 billion yuan.
CITIC’s reform and development research foundation expert Zhao Yazheng’s northward fund is the so-called “smart fund”. His research on fundamentals is very deep. He has always insisted on buying and holding, which shows that foreign capital is very confident in the economic development prospects of mainland China and governs the Chinese government.The capacity and reconstruction of the epidemic are also very affirmed and supported.
During the epidemic prevention and control, investing in A-shares must not only strengthen confidence, but also pay attention to risks, and pay attention not to follow the trend and speculate instead, and adhere to the concept of value investment.
Guo Xiaobei, a researcher at the China Minsheng Banking Research Institute, is a barometer of economy and society. It also has self-repairing and regulating functions. In the medium and long term, the epidemic has no significant impact on the capital market.
With the continuous development of the Chinese economy, the transformation of high-quality A-share companies is accelerating. The short-term replacement of A-shares gives “smart money” the opportunity to buy high-quality assets, objectively reflecting the determination to continue to be optimistic about the market over the long term.
Yang Delong, chief economist of Qianhai Open Source Fund, on foreign high-quality allocation of A shares actually shows that they are more optimistic about the future performance of A shares.
Many foreign asset management giants have expressed optimistic views on A shares. Considering that the foreign allocation of A shares was too low in the past, foreign allocation of A shares will continue to increase in the future.
In the long run, the speed of foreign inflows will further accelerate.
The foreign allocation of A shares now only accounts for 2 of global assets.
5%, and China ‘s GDP accounts for more than 16% of global GDP.
In 2019, China’s GDP is close to 100 trillion U.S. dollars. Therefore, excessive allocation of A shares is still seriously underweight. In the future, foreign exchange will continue to increase the allocation ratio of A shares and Chinese bonds.Distribution process.
Now that the reform of A-shares is gradually progressing, the varieties of derivatives will also be more abundant. These are all conducive to attracting more and more A-share markets.
After the QFII investment restrictions were lifted, the internal flow of funds QFII system is one of the main channels for foreign investors to invest in the internal financial market. Since its establishment in 2002, it has undergone a number of quota adjustments and related system adjustments.
On January 14, 2019, the QFII quota was raised from US $ 150 billion to US $ 300 billion.
In September last year, the State Administration of Foreign Exchange lifted restrictions on QFII and RQFII investment quotas to attract foreign investment in China’s financial market.
What is the flow of funds after the cancellation of investment restrictions?
According to data disclosed by the State Administration of Foreign Exchange, as of January 31 this year, the QFII conversion quota was approved at 1118.
US $ 9.9 billion, RQFII approved investment quota of 6997.
52 trillion yuan; as of August 31 last year, QFII cumulative approval quota was 1113.
US $ 7.6 billion, RQFII approved investment quota of 6933.
2 billion yuan.
Therefore, the removal of investment restrictions from the end of last month, QFII increased the approved quota to 5.
US $ 2.3 billion, RQFII increased approval quota to 64.
500 million yuan.
Zhongshan Securities Chief Economist Li Zhan and the cancellation of quota limit indicators before, QFII and RQFII investment quota growth rate quickly appeared significantly accelerated.
The Air Force’s QFII limit is 300 billion U.S. dollars, and the RQFII limit is 1.99 billion yuan, of which the approved quota far exceeds its quota limit.
Therefore, the practical significance of lifting the quota limit is to show a more open attitude of China’s financial market, and at the same time make the QFII and RQFII entry channels complementary to the Shanghai-Shenzhen-Hong Kong Stock Connect channel. Through MSCI, S & P Dow Jones, FTSE Russell and other international indexesGradually dividing A shares by QFII and RQFII quota restrictions will create more room for gradually increasing funds to enter A shares.
China International Economic Exchange Center Vice Minister of Economic Research Liu Xiangdong QFII holdings of white horse stocks are easier to grow.
From the holder’s 100 shares, we can see that foreign countries prefer growth stocks with diversified profitability, better cash flow, and good information disclosure and dividends.
Wang Youxin, a researcher at the Bank of China Research Institute, has further increased the opening up of the international financial market and introduced supporting reform measures one after another. In the future, foreign capital will further increase the value of domestic securities assets.
Especially for emerging technology companies and pharmaceuticals that have high growth and are in line with future economic development trends, consumer companies will gain more favor.
This year, social security, insurance, and pensions entered the market with the highest or more than 600 billion yuan. Since this year, investors have accelerated their entry into the market.
According to the latest data from China Securities Depository and Clearing Corporation, as of the end of January, A-share investors (including natural persons and institutions) have reached 1.
In fact, foreign institutions are also increasing their positions.
Recently, Yan Qingmin, vice chairman of the China Securities Regulatory Commission, said that the next step is to actively expand the medium and long-term funding sources.
We will further increase the proportion of equity funds, expand the pilot projects of public fund investment and advisory business, encourage and support the entry of social security, insurance, pensions and other medium- and long-term funds into the market, and promote the implementation of the policy of personal pension supplement deferred account investment public funds.
Pan Xiangdong, chief economist of New Era Securities At present, there are three major foundations for medium and long-term capital entry.
First, the regulatory and supervisory departments have adopted a series of complementary measures to optimize and expand the stock interoperability mechanism, revise and improve the QFII and RQFII systems, further expand the opening of the securities and futures industry, and promote the public offering institutions to vigorously develop equity funds and expand stocks.The stock index supplementary pilots and the release of MOM product guidelines have continuously improved the basic system of the capital market.
On average, the current estimated advantages of A-shares are obvious, helping to attract long-term funds and sharing the benefits of China’s new economic growth.Finally, the impact of the epidemic on the economy has gradually weakened, and the resumption of production and production has progressed in an orderly manner, which has strongly supported the long-term bull trend in the A-share market. It is expected that the medium- and long-term funds of the A-share will continue to flow in in 2020, supporting the slow bull market.
Liu Zhe, Deputy Dean of Weber New Economic Research Institute, is currently in the stage of dual drive of institutional reform and technological innovation. The transformation and registration system reform provides advance exploration and institutional guarantee to better play the role of asset allocation in the capital market.Improved domestic alternatives and the enhancement of independent research and development capabilities of domestic listed companies. Some leading technology companies have expanded the track for market demand and are expected to enter a period of rapid growth in the future.
Mid- and long-term funds entering the market at this time can not only enjoy the new dividends of technology-driven economic transformation, but also the mid-to-long-term price investment style, but also help guide the capital market to gradually mature, and better support economic innovation and structural transformation.
In order to promote the entry of social security, insurance and pensions, Longmen Asset Management Chairman Li Yinghong is expected to introduce incentive policies this year.
For example, in order to encourage the entry of enterprise annuities and professional annuities into the market, the Chinese government may study the US 401K clauses and adopt such funds to implement a proactive policy of phasing out taxes to expand the scale of pensions entering the market, while encouraging more enterprises and institutions to establish enterprise annuitiesOr occupational annuity, to increase the size of the pension.
If the policy is properly guided, this year’s social insurance, insurance and pension funds will reach the highest scale or exceed 600 billion US dollars.
Xiaomei sauce editor | Liu Qi