Weekly Market Review
Recently, my country’s economic data has been weak, the RMB exchange rate has broken through 7, and the market’s expectations for the economy have been weak. However, the People’s Bank of China has recently lowered the deposit interest rate. In the medium and long term, the interest rate will continue to decline, and it is expected to continue to implement a loose monetary policy. Future loose money will enter the real world, which is expected to promote further economic recovery.
Recently, the issue of the US debt ceiling has aroused more and more serious bipartisan disputes. If it cannot be resolved, it may become the fuse of the global economic crisis. However, based on historical experience, the two parties tend to reach an agreement at the last minute, so no major negative factors are expected to form.
The peaking of the Fed’s interest rate and the rate cut in the second half of the year will loosen liquidity in the global market.
As the domestic economy recovers and the Fed stops raising interest rates, the Shanghai Composite Index will continue to rebound.
(Ying Ying 2023.5.21)
Ten billion quantitative private equity shot!Suspension of these products
Recently, Ten Billion Quantitative Private Equity Sixie Investment released a letter to investors. It believes that the market is at a historically low level, and the time for quantitative long-term layout has come; investors are advised to focus on index-enhanced quantitative long-term strategy products, and layout on dips. In addition, it also said that the company will suspend the issuance of market-neutral strategic products.
Statistics show that this year, the average yield of more than 1,800 quantitative private equity products in the market is 6%, and 390 new quantitative index private equity products have been released this year. However, in recent years, the attenuation of excess returns of index-increased products has also been a concern of the market. Some private equity companies believe that excess volatility has a certain periodicity, but our market quantitative investment still has the best long alpha in the world.
(China Fund News)
Buffett is right again!
On Friday (May 19), the Nikkei 225 Index further opened more than 1% higher, reaching a peak of 30,924.47 points, a new high since August 1990, and closing at 30,808.35 points. Earlier this week, the Topix index had already hit its highest closing point since August 3, 1990.
As a result, the Japanese stock market has become one of the best performing markets in the world over the same period. Before the current round of continuous rise in Japanese stock markets, Buffett said in an interview with Japanese media in early April this year that he intends to increase investment in Japanese stocks.
(China Fund News)
200 billion fund of funds landed!
On May 19, Chongqing Municipality announced at the 5th “West China Fair” that it will establish a Chongqing Industrial Investment Fund of Funds with a total scale of 200 billion yuan. It is said that half of the institutions in the venture capital circle have gone, and domestic top investment institutions Hillhouse Capital, CICC Capital, Sequoia China, Shenzhen Venture Capital, IDG Capital, etc. participated in the listing of the fund.
It is understood that Chongqing City expects to use this 200 billion yuan fund of funds to strive to form an industrial fund cluster of over 600 billion yuan through amplification, and to drive investment in Chongqing’s advanced manufacturing industry of over one trillion yuan.
(China Fund News)
“Blind box” fund reappears in the rivers and lakes!
Under the extremely polarized market, the “style drift” fund reappeared. A few days ago, a rating agency sorted out the first quarterly reports of public offering funds and found that the actual investment style of some fund products was seriously inconsistent with the style agreed in the fund contract, and they were not rated. The long-standing “style drift” problem in the public offering industry has once again aroused widespread concern. The chronic disease of “style drift” is difficult to get rid of. The main reason is that in the context of accelerated industry style rotation, some funds seek higher short-term returns by chasing hot sectors in the market.
Although fund companies have gradually increased the weight of mid- and long-term performance appraisals, there are still certain short-term investment behaviors under the pressure of performance appraisals, which promote “style drift” in an extreme market environment. Therefore, the industry calls for strengthening the medium- and long-term assessment orientation, and eliminating short-term and extreme investment behavior from the root cause.
It should be noted that the identification of fund “style drift” needs to consider many factors and cannot be generalized. Most “style drift” funds do not follow the established investment objectives, and there are large deviations in the investment field. The design of many actively managed funds leaves a certain amount of flexibility in the scope of investment. Investors should carefully read the legal documents of the fund before purchasing to understand the definition of the product’s style.
(China Fund News)
Fund managers with poor performance were completely “rolled” by the program?
Since the beginning of this year, quantitative long-term private equity products have significantly “outperformed” subjective long-term strategy products. According to the latest data from the private equity ranking website, as of May 19, the average return of subjective long-term strategy private equity products this year has been 3.7%, and positive returns accounted for less than 60%. Not only is the performance leading, many private equity market sources revealed that the recent channel distribution is also quite “preferred” to the quantitative long-term strategy.
Industry insiders said that this year, due to the outstanding performance of the market broad-based index and the rapid rotation of the sector, it is difficult to invest in the subjective long-term strategy, and the quantitative long-term strategy with beta and alpha returns shows its advantages. However, the two strategies have their respective market environments, and subsequent investors can choose according to market changes and the nature of their own funds.
(Shanghai Securities News)
Funds gather together for research stocks, and three major industries have received more than 400 fund research. This theme is the most concerned by funds.
According to statistics from Securities Times·Databao, fund companies have investigated a total of 443 listed companies since May, an increase of 81 companies from the same period last month, and the enthusiasm for fund research has increased. From an industry perspective, machinery and equipment, pharmaceuticals and biology, electronics, computers, power equipment, and basic chemical industries are popular with fund companies, and more than 30 listed companies have received fund research. 53 companies in machinery and equipment were surveyed by fund companies; 43 companies in medicine and biology and 39 companies in electronics were surveyed.
Judging from the number of fund companies participating in the survey, there are more than 100 fund companies in 14 industries, including more than 400 fund companies in the machinery and equipment, pharmaceutical and biological, and electronics industries. Only 18 companies in the media industry were surveyed, but 301 fund companies participated in the survey, with an average of 17 fund companies surveying each listed company.
Yuan Wang TechnologyThe number of surveyed fund companies is the largest, reaching 73. The company received 216 institutions to investigate on May 4. Regarding the advantages of using AI, the company said that there are now more than 100 live broadcast rooms. The company is a technical background, has done AI before, and has always had technical reserves , Yuanwang Cloud 1.0 is one of the few complex systems in the industry, and the company’s technical team will continue to play a role in the future. Among the companies with the largest number of fund surveyors,Inovance Technology、EstonYuanwang Technology,Lead puzzle、Fruit cultureOther stocks are related to the theme of artificial intelligence.
(data treasure)
In the three-year exam, half of the product revenues were lost!
In recent years, in order to reduce investors’ frequent transactions and chasing ups and downs, many public offering institutions have guided long-term investment and issued holding period products. Especially since 2020, public offerings have increased their efforts to deploy three-year holding period products. Now that the three-year operation period has expired one after another, the performance of some products is not satisfactory. Statistics show that among the 30 three-year holding period products established in 2020, half of the products are still losing revenue, and there are even 5 products that have lost more than 20%, and many of them are managed by star fund managers. Many industry insiders said that the poor performance of the fund during the three-year holding period is not only related to the timing of the establishment of the fund, but also closely related to the market style, product positioning and the management ability and skills of the fund manager.
(China Fund News)
Tragic! 10 companies with collective losses in public offerings have lost money for 7 years in a row. It is better to sell funds than to be a fund?
According to statistics, the 67 fund companies with statistical data will realize a total net profit of 39.438 billion yuan in 2022. From the perspective of profit scale, on the one hand, there are 17 leading public offerings with a profit of more than 1 billion yuan, and their total profit scale reached 30.664 billion yuan, accounting for 77.75% of the overall profit. But on the other hand, 10 fund companies suffered operating losses, with a cumulative loss of 435 million yuan.
From the perspective of financial subject power, most fund companies exist as part of the full license layout of major shareholders (especially shareholders such as banks, securities companies, insurance companies, and trusts). However, there are also some shareholders (especially those who are not the largest shareholder) who regard the shares of the fund company as financial investment. In terms of business rules, different financial institutions have different profit cycles. According to observations from industry insiders, traditional insurance companies generally need about seven years to achieve profitability, while fund companies generally need about three years to achieve profitability. However, from a practical point of view, due to the different endowment of each company, the profit situation shows a large difference. For example, Nanhua Fund has been losing money continuously since its establishment seven years ago, and Morgan Stanley Huaxin Fund, as a company with a history of 20 years, still suffers losses.
(Brokers China)
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