Xinhua News Agency, Beijing, April 22nd, Question: The public fund's first quarter issuance scale sets a new record, highlighting market appeal
Xinhua News Agency reporter Liu Hui
Market data shows that in the first quarter of this year, 239 new public funds were issued, raising 516.046 billion yuan. The size of the fundraising set a quarterly record in the history of public funds. Among them, 139 partial-share funds newly issued, raising 322.047 billion yuan, which also set a record for the highest quarterly issue size in history.
Hu Lifeng, head of the Galaxy Securities Fund Research Center, believes that the good issuance of public funds in the first quarter of 2020 further highlights the continuity, stability and resilience of the development of China's capital market and public fund industry.
He analyzed that although China's economy and financial market were affected by factors such as the new coronary pneumonia epidemic in the first quarter, public funds have ushered in the highest historical record of quarterly issuance. Behind this is the continuous development of equity funds with policy support in recent years. Investors' enthusiasm for partial-share funds has risen sharply, prompting the staged issuance to be more popular.
According to the latest data from the China Fund Industry Association, as of the end of March 2020, the total net asset value of China ’s public funds reached 16.64 trillion yuan, a record high again. The total size of public funds has reached a record high for four consecutive months. In March, when panic in the global capital markets spread, the total size of public funds still achieved positive growth.
Throughout the fund's issuance market in the first quarter, the "Sunshine Fund", which ended on the day of the sale, appeared frequently, and it set an alarming record of over 100 billion yuan in a single product. The “star effect” blessing and the “earning effect” have driven the fund market.
However, industry experts reminded that the "herding effect" also needs to be prevented under the craze. It is worth noting that the stock market has fluctuated since mid-to-late March, and funds issued at higher positions have staged retracements, suggesting that new fund issuance needs to be sustained and stable to avoid excessive short-term concentration.
Hu Lifeng said that fund issuance is greatly affected by stock market trends, investor sentiment, and sales organization strategies in the short term, and often alternates between hot and cold. From the data of partial equity fund offerings since 2001, there have been 72 quarterly net redemptions and 5 quarters of net purchases in the past 77 quarters. Partial stock funds how to get rid of the fate of continuous net redemption is an important issue facing the industry.
"To solve this problem, it is estimated that we need to wait for the in-depth promotion of the fund's investment advisory business, thereby changing the investor's trading behavior. With the changes in the industry ecology, the improvement of the fund company's service capabilities, and the enhancement of investors' rational investment awareness, the development of public funds It will be more stable and is expected to bring investors a better investment experience. "Hu Lifeng said.