It was a comedy, but it could have turned into a farce.
The beginning of the story, from the young people began.
Last year, as the stock market boomed, so did public offering funds. More and more young people, after 1990, 2000, began to enter the market to buy funds.
Liu Xiangjun, who was born in the 1990s, showed his profit chart to Deep Fire. He bought it off and on from April to May last year, and invested about 150,000 yuan. During this period, the net value of the fund has been rising.
It’s a great feeling to lie down and make money. He does not understand the fund, also do not know these funds have bought what stocks, anyway, is “a blind buy, which see the eye to buy thousands of”.
There are not a few people like him who enter the market without knowing it and make money easily. According to MOB Research, in the first half of 2020 alone, China added more than 20 million basic citizens, about half of whom were born in the 1990s and under 30 years old. Through 2020, the average return of public funds in China will be 45%. This means that the vast majority of people who enter the market make money.
The young man who tasted the sweet taste was enthusiastic. Zhang Kun, the star fund manager of Yi Fang Da, was so popular that a large group of young foundation people set up a fan support group on January 26 to rank Zhang Kun on the list like chasing stars. Zhang Kun was put on the altar.
But only in more than half a month later, after the Spring Festival, the market sharply turned down. In just a few trading days, a fund managed by Zhang Kun lost 10 percent of its net worth. Years ago to chase high into the new base people, all buried. Many people suddenly changed their attitudes, questioning, cursing and even slanderous voices appeared.
For a lot of investors, the fund bull market from last year, is a good time to make money investment. Continuing to make money effect, attracted a large number of small white into the field. A 70-year-old retiree at home, a 20-year-old student just going to college, all start to ask what a fund is. Nationwide, the rise of a national “speculation base” fever.
Worryingly, many young people who have just entered the society, invest 100 thousand yuan to buy the fund, but they know nothing about the fund, they follow the trend of investment, frequent operation, chasing the rise and fall, like speculation fund, they do not know who is making money, and why the loss of money. They are young, impetuous, emotional, wild today, vigorous leeks tomorrow.
“In China’s capital market, the bull is short and the bear is long. It will take a long time to digest the pain and it will take time for new leeks to grow. History repeats itself. Each year’s leek thinks it’s different, but it’s not different at all.” A fund company in charge of more than 20 years of deep burning said.
The story starts beautifully, but this could be an exaggerated wealth extravaganza.
The beginning of the story: young people, financial management and dreams of sudden wealth
The fund began to arouse public discussion, in fact, in the second half of 2020, the most intuitive phenomenon is — the new fund issued, sold out.
Public offering funds are financial products issued by fund companies. Public offering means public fundraising. According to the direction of investment, the fund can be divided into money fund, stock fund, bond fund, etc. In 2020, the most popular is the stock fund, that is, the fund of those stocks. Bought fund, become fund holder, commonly known as “base citizen”.
The fund manager takes base people to fry stock, make money together lose money together, is the basic model of this business.
In the first week of the second half of 2020, the first “Nikali-based” (fundraising was completed on the day of offering) was born — Huitianfu Mid-Cap Value Selection Hybrid Fund, which raised over 30 billion yuan on the day.
Two days later, Penghua Selected hybrid fund, led by Jinniu fund manager Wang Zonghe, planned to raise 30 billion yuan. As a result, more than 70 billion yuan was subscribed in the morning, and 135.7 billion yuan was subscribed that day, setting a record.
That record stood unbroken throughout 2020, until Yi Fangda, who was dubbed web celebrity by his fans, struck it. On January 18, 2021, E-Fund Competitive Advantage Enterprise Fund was launched, and the subscription amount on that day reached 237.4 billion yuan, setting the highest subscription record in the history of public offering funds.
It was at this time that the public offering fund “went out of business” and exploded among young people. Fanhuan invaded and formed a global support group on Weibo for Zhang Kun, who was considered a new generation of koi fish and whose face was made into a poster to spread.
Everyone involved has a dream of getting rich. Liu Xiangjun was one of the first to dream.
Liu Xiangjun is the kind of person who “knows the importance of financial management, but does not know how to manage money”. In the past, he put his money in Yu ‘ebao, but later found that the return rate was getting lower and lower. He used to buy financial products recommended by banks, but he invested thousands of yuan, only earning a few dozen yuan a month, which was not worth it.
His starting point was simple – “one day I found a fund of my own choosing that I had joined two years ago was up 200 per cent”. The fund he was looking at was another consumer fund of the aforementioned Hui Tian Fu company.
He began to buy a variety of top funds in May last year, adding up to buy a total of 22, every month to buy thousands of pieces, in addition to understand the daily profit and loss of how much money, “other also do not understand.”
But he caught up with the good times. He entered the market, Penghua originality fund billion subscription, until two months later did not appear, the major fund companies hot style “daylight based”, most appeared in the second half of the year. In the six months from May to the 2021 Spring Festival (mid-February), the ChiNext index of A-shares rose 60 per cent, and many funds’ returns rose by around 30 per cent. When the Spring Festival came, he chose to “hold the base for the New Year”, did not sell profit, at that time the book profit is more than 50,000 yuan.
Just like a dinner party always begins with dessert. Taste the sweet people began to run to tell each other, “I bought the fund to make money”, become a lot of People’s Daily dinner and after dinner talk.
On some online fund discussion boards, information on blind dates began to appear, and both men and women asked questions about the topic, from houses and cars, into the type of funds they hold and yield. In liquor, medicine, new energy and other fund discussion areas with high cumulative returns, the most information about marriage in the comment area.
This seemingly hot atmosphere, the huge money-making effect, activated the young people’s dream of getting rich overnight. They run in with money and blood in their hands.
The people who make things worse
Everything seems like yesterday.
The last time such a hot fund market was in 2007. A local television when the host of the financial column of the media to deep burning recalled that every time the program began, he would report a number – the number of new base people that day. Because the market is too hot, too many new accounts are opened every day. It’s a lot like today.
Great river flood asset management co., LTD., chairman of ginger army from more than 20 years, he said to the deep burn, in 2008 he was in a securities company as research institute, the market jumped with investors huge wealth appreciation, almost every day at noon have investment money man asked him to eat, “mainly to share the joy, don’t earn money, to tell you”. During that bull market, the Shanghai A-share index rose from 998 points to 6,124 points, A sixfold increase in just over two years.
The clock goes on to 2020, and after last year’s surge in many fund yields, many now believe that a bull market similar to 2007 is at hand.
Zhao Yunjing, born in the 1990s, started to buy funds because one day, he received a pop-up window of Alipay’s fund push on his mobile phone. Following the link to the fund page, he found that many of the top funds had returns of more than 100%, while Yu ‘e Bao’s had fallen to less than 2%.
At that time, he had not only heard from a friend at a dinner party about the fund returns, he had seen a lot of fund advertisements in the subway passage on the way to work, on the TV screen of the community elevator, and even once when he was watching a short video, he also saw the live broadcast of the fund manager. Ping An Fund in order to promote its animal husbandry fund, actually brought a pig in the broadcast room.
The sales channels of Alipay and Tencent Financial Services for C-end users have greatly improved the convenience of ordinary people to buy funds. In the past, people buys a fund to go to a bank even, perhaps through fry software, but open mobile phone to be able to buy casually now, and limit without amount threshold, hundreds thousands can enter a field.
Bo Hu, a vice president at Trinicree, told Deep Burn that he can clearly sense that funds on Trinicree’s platform are selling much better than before. ‘A lot of clients are actively choosing funds,’ he said.
Tiger Securities, a U.S. -Hong Kong stock broker, told Deep Burn that many investors began to pay attention to funds last year. During the Spring Festival in 2021, the AUM (asset management scale) of Tiger Fund Supermarket stock reached 330% of the level at the end of Q3 last year, which doubled from the end of Q3 to the end of the year, and doubled again after the Spring Festival compared with the level at the end of 2020.
Before the Spring Festival, the fund is accelerating the group. The steady flow of cash has given continued liquidity to companies whose funds are heavily invested, which in turn has pushed their share prices higher. Hu Bo to deep burning analysis, fund group and there is no market is positive correlation, mutual cause and effect. “From a fund manager’s point of view, it’s very simple. I manage a fund of 5 billion yuan. You can’t buy small-cap stocks.
On some community APPs and short video platforms, some big Vs and some short video creators began to output popular science knowledge of the fund, expose the fund income, and guide fans to buy the fund. Videos such as “college students buy funds to earn thousands of dollars a month” and “students party financial management practice” are very common. These wild “fund god”, with a semi-professional interpretation, and can not verify the true and false income map, attract small white into the market, to the already hot fund market to fuel the flames.
Jiang Weijun believes that China has entered an era of capital. After per capita GDP exceeds US $10,000, everyone has spare money. Investment becomes a kind of rigid need and buying funds becomes a kind of mass culture.