In the vast ocean of financial markets, various forces are intertwined, like an invisible wrestling. BlackRock and other foreign-funded institutions, as an important role in this wrestling, have attracted the attention of the market every time they make a move. Recently, the trading operations of these foreign institutions in Hong Kong-listed companies such as WuXi AppTec and WuXi Biologics have become a hot topic in the market.
The trading behavior of these well-known foreign institutions is very frequent, but the trading volume of these well-known foreign institutions suddenly and significantly increases around the sensitive time, which makes people ponder the reasons behind it. Some market participants pointed out that such sudden changes in trading volume often contain deep-seated information. Especially in the context of CRO or the biomedical industry, some overseas capitals have complex political and business relationships, and they may see and understand this trend earlier than other investors.
However, there are also market observers who believe that the trading behavior of these foreign institutions is not abnormal. Margin trading is an important hedging tool in mature markets such as the United States, and it generally does not lend absolute returns and buy back at a low price. Therefore, due to the amplification of the trading volume of WuXi Group**, it is normal for the margin trading volume to be amplified. In addition, due to the current pessimistic atmosphere in China, it is also a normal market phenomenon for the introduction of the above-mentioned bills to trigger WuXi products, and the market often over-interprets information.
However, it is undeniable that the margin trading behavior of foreign capital, institutions and some investors has played a role in fueling this wave. Investor confidence remains fragile at the moment, and any movement could trigger sharp market volatility. In this context, the relevant authorities should re-examine and evaluate the design of the mechanism and rules for refinancing securities to avoid a sharp imbalance of long-short forces in a short period of time due to such "foreign compositions".
It is worth mentioning that the regulators have already begun to act. The China Securities Regulatory Commission (CSRC) announced that it will completely suspend the lending of restricted shares, and adjust the market-based declaration of refinancing securities from real-time availability to next-day availability, so as to limit the efficiency of securities lending and lending. The Shanghai and Shenzhen Stock Exchanges have also decided to suspend the lending and allotment of strategic investors within the promised holding period**. The introduction of these measures will undoubtedly have a profound impact on the market. On the one hand, it can enhance investors' confidence and sense of security; On the other hand, it also plays a positive role in stabilizing the market.
The pace of opening up and the intensity of control of foreign investment also need the attention of relevant departments. How to do a good job in the guidance and management of external capital and investment in the context of different times, and how to do a good job in rebalancing the internal mechanism is a long-term and arduous task. Only in this way can we better play the role of the capital market in promoting industrial development and scientific and technological innovation, stabilize the overall valuation level of the industry, and smooth the investment and financing cycle.
With the gradual implementation of regulatory policies and the improvement of the market's self-regulation mechanism, the CRO sector has also begun to collectively ** after a period of adjustment. Among them, Gloria and WuXi Biologics rose by more than 5%, and WuXi AppTec, Tigermed, and Pharmaron followed suit. Morgan Stanley released its latest report that the market may be allergic to the introduction of the U.S. biotechnology restriction bill, and believes that WuXi AppTec's stock price overreacted to it, providing potential opportunities.
In the new market environment, investors need to be more rational about market fluctuations and changes. Whether it is foreign capital, institutional or individual investors, they need to continuously learn and adapt to market changes, and improve their investment level and risk awareness. Only in this way can we be invincible in a complex and volatile market.
In this era of alternation between the old and the new, we have witnessed the wrestling and game of foreign capital, institutions and investors in the market. But no matter how it changes, one thing is certain: the long-term trend of the market is determined by the development of the economy and the fundamentals of the business. Therefore, for investors, it is important to grasp the context of economic development and the fundamentals of enterprises. Only in this way can we find real opportunities and value in the volatility of the market.