On Monday, October 23, 2023, *Huijin announced an increase in its ETF holdings. Since today, the net inflow of A-share ETF funds has exceeded 400 billion yuan, which can be called "epic" From the perspective of share changes, A**field**ETF has been net inflow for 13 consecutive weeks, and the net subscription in the last week before the Spring Festival is as high as 54.4 billion.
4 ETFs had a net inflow of more than 50 billion
Since last year, Huijin has issued three announcements to increase its holdings, except for the first announcement to increase its holdings in the "Big Four Banks", the remaining two announcements are to increase its holdings in ETFs.
On October 11, 2023, Huijin announced that it has recently increased its holdings of A-shares in Industrial and Commercial Bank of China, Agricultural Bank of China, Bank of China and China Construction Bank in the secondary market, and will continue to increase its holdings in the next six months.
On October 23, Huijin once again announced that it would increase its holdings in the ETF on the same day and would continue to increase its holdings in the future.
On February 6, Huijin announced for the third time that it fully recognized the value of the current A** market allocation, and had recently expanded the scope of ETF holdings, and would continue to increase its holdings and expand the scale of its holdings, and resolutely maintain the smooth operation of the capital market.
According to the data of China Securities News, if calculated from October 23, when Huijin first announced its increase in ETF holdings, in less than 4 months, the net inflow of funds in the A**field**ETF has been as high as 43589.6 billion yuan. Among them, there are 8 ETFs with a net inflow of more than 10 billion yuan, with a total net inflow of 377 billion yuan.
The CSI 300 ETF E Fund had the largest net inflow during the period, reaching 78.3 billion yuan; CSI 300 ETF (159919) followed closely behind, with a net inflow of 70.9 billion yuan; CSI 300 ETF (510300) had a net inflow of 69 billion yuan; CSI 300 ETF ChinaAMC net inflow was 53.5 billion yuan. These four ETFs linked to the CSI 300 accounted for the top four net inflows, and all of them amounted to more than 50 billion yuan.
In terms of scale, with the large-scale inflow of funds during the period, the net asset value of related ETFs has also increased significantly. Judging from the latest data, there are three ETFs with a net asset value of more than 100 billion yuan, namely CSI 300 ETF (510300), SSE 50 ETF, and CSI 300 ETF E Fund, with net asset values of 178 billion yuan, 109.9 billion yuan, and 106.9 billion yuan respectively.
For large funds to enter through ETFs, industry insiders pointed out that there are strict lower limit requirements for the allocation ratio of ETF**, which can provide stable long-term funds for the capital market, and will effectively play the role of "anchor" and "cushion" when the market is under pressure, which is conducive to reducing the overall volatility level of the market and promoting the stable and healthy development of the capital market.
The money-making effect of A-shares has rebounded significantly
Judging from the market reaction, Huijin's continuous increase in holdings has undoubtedly significantly boosted market confidence. From February 6th to February 8th, A-shares ushered in a continuous **, and the Shanghai Composite Index rose 606%, the Shenzhen Component Index rose 1075%, the GEM index rose 1051%。
From the perspective of market conditions, the recent trading volume and money-making effect of A-shares have increased significantly. Since February, the turnover of the Shanghai and Shenzhen markets has continued to rise, especially in the first three trading days of the Spring Festival, the turnover of the two cities has stood at the 900 billion and 1 trillion mark, and continued to close above the trillion mark in the last two days, while the last time the two cities closed above the trillion yuan was at the end of August last year.
In terms of money-making effect, the number of ** companies in the whole market was less than 10% at the beginning of February, but the proportion of ** in the last three trading days before the Spring Festival rebounded sharply. Nearly half of the ** rose by more than 10% in three days, and more than 500 of them rose by more than 20%.
More long-term funding is coming
Yang Delong, chief economist of Qianhai Open Source, said that in the current market position, investors should maintain confidence and patience, and not be pessimistic about the economic outlook, not pessimistic about the prospects, and not pessimistic about China's high-quality assets. Huijin's statement undoubtedly greatly boosted the confidence of the market and promoted the A** market to get out of the trend of "golden needle bottoming".
Previously, a spokesman for the China Securities Regulatory Commission said that the China Securities Regulatory Commission firmly supports ** Huijin Company to continue to increase the scale and intensity of its holdings, and will create more convenient conditions and smoother channels for its market entry operations. At the same time, the China Securities Regulatory Commission will continue to coordinate and guide various institutional investors such as public offerings, private placements, companies, social security, insurance institutions, and annuities to enter the market more vigorously, encourage and support listed companies to increase repurchase and increase their holdings, introduce more incremental funds for the A** market, and make every effort to maintain the stable operation of the market.
According to the data, the current proportion of medium and long-term capital holdings is less than 6%, far lower than the level of more than 20% in overseas mature markets, and the future incremental space can be expected. Market participants believe that with the continuous increase in policies, funds are expected to accelerate the entry, and various medium and long-term funds are expected to become an important part of the incremental funds of the A** field.