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After the disappointment of active equity, foreign public offerings began to lay out the debt base.
Since November, Fidelity, Schroders, and BlackRock have successively issued bond bases. In the second half of the year, the enthusiasm for the issuance of bonds in the whole market was high, and foreign capital, known as "smart money", also joined the issuance wave.
In fact, when foreign investors made their public offerings, the market expected them to take a differentiated path. However, three years have passed, and foreign capital has been pursuing localization, and there is no sign of differentiation.
Foreign public offerings poured into the debt base.
The public offering has entered the year-end sprint period, and foreign capital has also heated up significantly on the issuance side. However, in the layout of new products, Fidelity and BlackRock have deviated from the previous "heavy stock and light debt" style and issued bonds**.
On November 23, Fidelity established its first bond base, Fidelity Yuda Pure Bond. During the 21-day issuance period, the product raised a total of 5 billion yuan, which can be regarded as a "small hit" in the sluggish market.
On December 4, BlackRock Eversheds 30-day holding opened for subscription, which is BlackRock's second bond base. In February this year, BlackRock issued Xinyue Fengli, however, the performance of this product was not good, in the context of the overall strength of the bond market during the year, the C share income was -157%, all underperforming the benchmark.
On the same day, Schroders issued Schroder Hang Hang Bonds, and in June this year, Schroders was approved to be established, which was its debut. Different from Fidelity and BlackRock's issuance of pure bonds, Schroder Hengxiang adopts an "80+20" hybrid strategy, that is, a combination of "no less than 80% bonds + no more than 20% equity assets".
In fact, the enthusiasm of foreign investors to issue bond bases was not high before, and only 3 bond bases were issued by 6 newly established wholly foreign-owned public offerings (excluding equity transfer). In the past month, foreign investors have issued three new bond bases, and several bond bases are still waiting to be issued, and the issuance has accelerated significantly.
Not only foreign capital, but also the whole market is chasing the debt base. In November, the company was established to get out of the stage trough, and the bond base became the main force in the market. Wind data shows that the establishment share of new ** in November totaled 13109.7 billion shares, of which 1052 shares are bond-type8.6 billion, accounting for more than eighty percent.
Bond base issued by foreign investors, data**: wind
If the rights and interests are frustrated, why don't foreign investors play the trump card?
In September 2020, BlackRock obtained a public offering license and became the first wholly foreign-owned public offering in China, and the market exclaimed "the wolf is coming". At that time, the expectation of the outside world was that foreign investors would come up with a set of differentiated treatment combining Chinese and foreign countries to inject fresh blood into A-shares.
However, in the three years since the advent of foreign capital public offerings, not only has it not brought too many surprises to the Chinese market, but it has also been frequently complained about "not adapting to the soil and water" due to its poor performance.
Taking BlackRock as an example, a total of 6 products have been established so far, and the performance is all negative. BlackRock China New Horizons, the first product of foreign investors in the A-share market, has a net worth** of more than 40% in the two and a half years since its establishment, significantly underperforming the benchmark and related indexes.
It is true that product performance is related to the overall market downturn, but among BlackRock's six products, only BlackRock Advanced Manufacturing outperformed the benchmark, which cannot only blame the poor performance on the market level. Moreover, when the bond market was strong, the bond base BlackRock Xinyue Fengli was still in the red, with a net value of **-230%, underperforming the benchmark.
In addition to BlackRock, foreign-issued interests** also include Fidelity Six-Month Legacy and Neuberger Berman China Opportunities, with revenues of -13 per cent since inception89%、-7.43%。
Foreign capital likes to talk about "localization", but at the same time, it has given up the advantages of foreign capital itself.
BlackRock, for example, is known for its passive investing, but in China it has shifted to active investing. During the year, major public offerings have entered the ETF market, with the total scale increasing by more than 20%, and BlackRock, as the grandfather of global ETFs, has not entered the market for a long time. In addition, Fidelity is an expert in pension investment overseas, and is the largest manager of 401k pension in the United States.
It is necessary to combine local practice with overseas experience", a number of foreign public offering leaders have publicly made such statements, but at the product level, overseas experience does not seem to have worked. The performance of foreign public offerings is not as expected, and Sun Guiping, a member of the Shanghai Evaluation Research Center, said that "no matter from the perspective of investment or sales, it will take a period of time to be familiar with and adapt to the Chinese market."