Spark Trader Limited reports:
Up to the closing date of August 17, the turnover of Shanghai and Shenzhen stock markets has exceeded RMB trillion for 20 trading days. Obviously, there is no accident today, and the turnover will still be RMB trillion. In this wave of market, public offering, private placement, insurance and other institutions continue to increase the a-share market, which has become an important source of capital in the capital market.
Public offering: The net asset value climbs the peak, and the equity fund has a strong ability to attract capital
According to Wind data, as of press release, 8,395 public funds have been raised, with their share exceeding 20 trillion yuan for the first time, and their net asset value reaching 23.4 trillion yuan for the first time. By July 2021, the total number of public funds increased by 21.2%, and the net asset value of all funds increased by 33.5%.
In terms of investment types, as of July this year, the ability of equity funds to “absorb money” is still increasing.
Among all types, the number of mixed funds accounted for the highest, 44.73%. The net asset value of the hybrid fund has maintained at more than 25% since this year, reaching 26.66% in July this year, compared with 18.53% in the same period last year, a very significant increase. Hybrid fund for active equity investment funds, recently by the market hot discussion of the star fund managers, most are the helmsman of this kind of fund.
The number of equity funds accounted for 18.44 percent, the highest in nearly a year, while the net asset value has remained stable at about 9 percent. Stock fund tracking of the major indexes as the market frequent style switch, performance also shows the trend of polarization.
In contrast, the bond fund known for its steady, the number of funds accounted for the ratio and the fund net asset value accounted for a decline in the same period last year. It’s a similar story for money funds, which are more conservative in risk and return. Alternative investment funds and QDII funds have always held a small market share and remain relatively niche product choices.
Private equity: The scale of rapid growth, high net worth people “buy a house is better than buy private equity”
By the end of July, the total number of private funds exceeded 110,000, with a total net asset value of 18.99 trillion yuan. The net worth of private equity jumped 1.1 trillion yuan in July, the biggest monthly increase this year. Among them, the number of private equity investment funds focusing on secondary market investment reached 67,000, up 42.8% year on year; The corresponding net asset value was 5.45 trillion yuan, up 76.3 percent year on year.
In terms of investment types, the number of equity funds issued is crushing, while the number of hybrid, bond, money market and alternative investment funds cannot compete with it. In terms of issuance scale, bond fund accounts for the highest proportion, followed by stock and mixed type.
In this regard, Xu Haining, vice president of Orient Securities, recently said that on the one hand, under the background of “housing speculation”, the government’s strong regulation and control policies make the profit expectation and return space of the real estate industry become relatively limited. On the other hand, due to the downward trend of macro interest rates and the rising risk of trust products, high net worth individuals are in urgent need of looking for new investment targets. Overall, equity assets will be the new direction of wealth management.
Another broker has a similar view, she believes that high net worth people from the hot investment in real estate to private equity funds is the trend. In her view, investors should adapt to the changing times and make the transition to asset allocation as soon as possible.
Insurance capital: gradual participation in capital market investment
According to the public information of the Insurance Asset Management Association of China (IAMAC), from January to May 2021, the iAMAC registered 3 private insurance funds, with the size of 16.502 billion yuan. By the end of May 2021, the Association has registered a total of 40 private insurance funds with a scale of 336.727 billion yuan.
The research report of CITIC Construction Investment Shows that by the end of 2020, the total asset management scale of 27 comprehensive insurance asset management companies and 8 professional insurance asset management companies in China has reached 21 trillion yuan, and the investment of the funds managed by insurance asset management institutions into bond assets, financial products and bank deposits accounts for 38%, 18% and 13% of the total investment scale respectively. Together, they account for nearly 70%. Among them, the financial products are mainly pooled fund trust plan and debt investment plan, and the proportion of equity products is still very limited.
Since last year, a number of new regulations have been introduced to encourage the active and healthy participation of insurance capital in equity investment. In July last year, the China Banking and Insurance Regulatory Commission (CBRC) issued a document raising the investment ceiling on equity assets of insurance companies to 45 percent of their total assets at the end of the last quarter. According to Wind data, since July this year, insurance companies and insurance asset management companies have investigated a-share listed companies for A total of more than 550 times, and individual stocks such as Changchun High-tech, Sanhua Intelligent Control and Qiming Star have become the focus of insurance capital.
Compared with public and private offerings, insurance capital still needs to be more actively allocated to the A-share market, according to an industry insider. In his opinion, as the bank wealth management yield narrowed, the risk of trust products rose, insurance capital to the equity market investment transformation is imperative.
Reprint indicated source：Shine Trader Limited Live information