According to data disclosed by the China Securities Investment Fund Industry Association a few days ago, as of the end of October, my country's public offering funds have reached historical highs in terms of fund size, shares, and number of funds.
Among them, equity funds represented by hybrid funds are increasingly being valued and favored by investors.
Industry experts believe that with the increase in the wealth management needs of Chinese residents, the scale of public funds is expected to continue to grow in the context of the persistence of "housing to live without speculation" and the transformation of net worth.
At the same time, it also reflects that the attractiveness of the A-share market is continuously increasing, and it has become a popular choice for many investors to enter the market through professional institutional public funds.
According to data, as of the end of October 2021, there are 137 domestic mutual fund management companies in my country, including 44 Sino-foreign joint ventures, 1 wholly foreign-owned company, and 92 domestic-funded companies; securities companies or asset management subsidiaries of securities companies that have obtained public fund management qualifications There are 12 companies and 2 insurance asset management companies.
The net assets of public funds managed by the above institutions totaled 24.41 trillion yuan, a record high.
It is worth noting that, compared with the situation in which the share and net value of the fund fell in September, in October, the entire industry of public funds reached a record high in fund size, share, and number of funds.
Specifically, the scale of public funds in October increased by 505.566 billion yuan, an increase of 2.12% from the previous month; the overall share reached 20.90 trillion, an increase of 363.755 billion from the previous month, an increase of 1.77%.
At the same time, the number of funds reached 8,969 in October, an increase of 103 from September.
From the perspective of fund types, the seven major types of funds have achieved net growth in share and scale.
Among them, the monetary fund scale increased by 260.198 billion yuan, an increase of 2.76% from the previous month. The total share increased from 9.41 trillion at the end of September to 9.66 trillion at the end of October, an increase of 259.626 billion.
In addition, the scale of equity funds also achieved growth in October.
Among them, equity funds increased by 60.255 billion yuan, an increase of 2.54% from the previous month. At the end of October, the scale had reached 2.43 trillion yuan; the hybrid fund increased by 120.66 billion yuan, ranking second among the five major sub-category funds, with an increase of 2.14% from the previous month. At the end of October, the scale reached 5.76 trillion yuan.
Under the market turbulence, the issuance of new funds in October was sluggish, but from the overall situation this year, it was still the "big year" for the issuance of public funds.
Wind data shows that as of November 24, the total number of newly established funds during the year was 1,609, with a total share of 2.61 trillion.
Among them, the number of newly established funds this year has exceeded the total number of newly established funds in 2020, which was 1,387 last year.
From a structural point of view, the proportion of mixed fund shares issued this year is as high as 60.97%, the highest proportion in the past five years; the proportion of shares issued by equity funds is slightly higher than last year, at 12.90%.
In terms of the investment direction of public funds, the new energy sector is recognized as a “sweet and delicious”, which has continuously gained shareholdings from public funds, ranging from industries to vehicles to batteries, from active products to ETFs, and public fund products.
According to the situation disclosed in the third quarter report of public funds, in the third quarter, Kweichow Moutai, which has held the No. 1 heavy holding stock for eight consecutive quarters, was overtaken by Ningde Times, a representative stock of the new energy sector, in the third quarter.
In fact, since the beginning of this year, under the background of large volatility in some industries in the A-share market and obvious market differentiation, public fund products that invest in the new energy track can be described as fruitful. As of November 24, the Shenwan Electrical Equipment Industry Index The year-to-date increase has reached 58.61%.
According to the research report of Haitong Securities, in terms of quarterly changes, the market value of the new energy industry chain related industries in the third quarter of the fund's heavy holdings has increased significantly, and the market value of chemical, non-ferrous metals and electrical equipment has increased by 1.9, 1.5 and 0.8 percentage points respectively. Among them, the overall market value of the new energy industry chain concept increased by 2.5 percentage points from the previous month; the market value of liquor, medical biology and electronics dropped significantly, down 2.8, 1.5, and 1.3 percentage points, respectively. The total market value of the three industries accounted for A decline of 5.6 percentage points.
"The rise of the new energy vehicle battery sector is mainly driven by several factors. In terms of supply and demand, the substantial increase in global sales of new energy vehicles and the rebound in demand for consumer electronic products have driven the growth of demand for new energy batteries, mainly lithium batteries; industry; On the one hand, the increase in the global competitiveness and market share of my country’s lithium battery industry has provided a stronger impetus for the rise of the share prices of related companies in my country’s industrial chain; in terms of new energy vehicle sales, continued policy encouragement, strong product drive, and consumption Under the combined effect of the increase in the recognition of the consumers, the sales of new energy vehicles in my country have increased significantly.” said Luo Guoqing, fund manager of GF Guozhen New Energy Vehicle Battery ETF.
In addition, a research report recently released by the GF Securities Development Research Center shows that public funds will be fully overtaken on the new energy track in the third quarter.
Not only photovoltaics and new energy vehicles, but also energy storage and wind power tracks related to new energy infrastructure have also received additional allocations.
Among them, the proportion of wind power in the third quarter increased by nearly 1 percentage point, a new high since the second quarter of 2018.
Regarding the reasons for the repeated record highs in the scale of public funds, Li Zhan, chief economist of the China Merchants Fund Research Department, believes that there are three main aspects: First, institutional investors are the general trend of the development of the entire capital market.
One of the important signs that the capital market has entered a mature stage is that there are fewer and fewer retail investors and more and more institutional investors in the market.
The repeated record highs in the scale of public funds are actually the inevitable result of the development of the entire capital market to a certain stage; second, the overall market of public funds has now begun to enter a healthy development track.
In recent years, under the promotion of various policies, the development of the public equity fund market has gradually become professional and intensive, which can better help investors make more suitable and professional investment choices, and therefore are more and more recognized by market investors; Third, the current overall interest rate level is relatively low, and the market expects investment products with a relatively high level of return, and public funds with a higher level of return relative to bank deposits have become a popular choice.
As residents’ financial needs continue to increase, equity funds have become more prominent among public offering funds. Li Zhan believes that, in essence, investors share the benefits of policy dividends and social and economic development through public offering funds, reflecting investment People’s broad recognition of capital market reforms and their confidence in future development are fundamentally confident in China’s future economic growth and development.
Our reporter Ma Chunyang