Reporter Meng Ke and Wu Xiaolu.
On February 6, the spokesperson of the China Securities Regulatory Commission answered reporters' questions on the announcement of the increase in holdings of ** Huijin Company, saying that at present, the valuation level of the ** field is at a historical low, and the medium and long-term investment value is highlighted, which has been fully recognized by investment institutions including ** Huijin Company.
On the same day, the official website of **Huijin Company announced that it fully recognized the value of the current A** market allocation, and has recently expanded the scope of exchange-traded open-end index ** (ETF) holdings, and will continue to increase its holdings, expand the scale of holdings, and resolutely maintain the smooth operation of the capital market.
Yang Chao, a strategic analyst and team leader of the China Galaxy Research Institute, told the reporter that under the current continuous market, Huijin's increase in holdings not only brings incremental funds to the market, helps to calm market fluctuations, but also sends a positive policy signal to the market, which is expected to help restore investor confidence and boost the market.
The increase in holdings of the "national team" released a positive signal
The national team's entry to increase holdings has released a positive signal to the market. On February 6, A-shares rebounded**, and the three major stock indexes all rose. As of **, the Shanghai Composite Index was 278949 points, an increase of 323%。
The relevant person in charge of Bosera ** said that on February 6, the collective upward movement of A-shares, on the one hand, was affected by the policy, ** Huijin Company announced, and at the same time, the China Securities Regulatory Commission issued 4 important news in a row, and the regulator continued to transmit positive signals to the market through practical actions, which effectively boosted market confidence; On the other hand, since the beginning of this year, A-shares have continued to be the best, with obvious bottom characteristics, and the market has entered a cost-effective range. In addition, on February 6, the significant net inflow of northbound funds exceeded 10 billion yuan, which boosted market sentiment to a certain extent.
It is worth noting that on October 11, 2023, **Huijin increased its holdings in the four major state-owned banks of Industrial and Commercial Bank of China, Agricultural Bank of China, Bank of China and China Construction Bank, and on October 23, 2023, **Huijin once again announced the disclosure of **ETF and said that it would continue to increase its holdings in the future. After the news was released, the market risk appetite rebounded in the short term, and A-shares all achieved **. After October 24, 2023, the A** field ushered in a wave of ***
In Yang Chao's view, the expansion of the ETF holdings of ** Huijin Company once again shows the recognition of the value of A-share allocation and the confidence in the repair of market valuation.
From the perspective of market turnover, the 'national team' prefers broad-based ETFs such as CSI 300, SSE 180, SSE 50, CSI 50 and CSI 1000, because these indices are more influential and representative in the market, which helps to boost market confidence. The relevant person in charge of Bosera said.
Guide more medium and long-term funds into the market
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, medium and long-term funds are expected to accelerate their entry. Last year, the State Administration of Financial Supervision reduced the risk factor of capital occupation by insurance companies investing in the constituent stocks of the CSI 300 Index and the Science and Technology Innovation Board, and the Ministry of Finance implemented a three-year long-term assessment of state-owned commercial insurance companies, which is conducive to better playing the role of market stabilizer and economic development booster of medium and long-term funds. "Under the continuous guidance of the policy, insurance funds are expected to become an important part of the incremental funds of the A-field. Yang Chao said.
Multiple factors support the recovery in A-share valuations
From the perspective of domestic and foreign institutions, the current valuation of A-shares is attractive. The major broad-based indices of the A** market are all at historical lows.
From the perspective of economic fundamentals, the trend of stability and improvement has not changed. Chen Guo, chief strategic analyst of China Securities Construction Investment, told reporters that the announcement of Huijin Company reflects that the value of the current A** field allocation is fully recognized. Combined with recent PMI and other macro data, the economic fundamentals are expected to gradually show a stable and positive repair trend. In this context, from the perspective of the valuation indicators of the A** market, including the cost performance of stocks and bonds, the relative valuation of China** to major overseas markets and the historical valuation quantile of the main A-share index, it can be found that the current A-share has significant allocation value.
From a policy point of view, Zheng Zifeng, chief investment officer of Standard Chartered Bank North Asia, said that the recent favorable policies of the regulatory authorities have been set up. The People's Bank of China announced a 0.05 percentage points to increase liquidity. In addition, the stock is supported by the "national team", which is expected to stabilize and investor confidence will also be boosted.
In addition, since the beginning of this year, there has been an endless stream of buybacks by listed companies and increased holdings by major shareholders. Yang Chao believes that the increase in the repurchase and increase of listed companies on the one hand sends a positive signal to the market that the value is undervalued, and on the other hand, it also helps to improve the market capital situation and reduce the short-term volatility of the market.
On the whole, Yang Chao believes that with the continuous increase in the steady growth policy, the fundamentals of the A** field are expected to usher in marginal repair. The policy continues to guide medium and long-term funds to accelerate the entry of funds, and the gradual improvement of A-share capital may lead to the recovery of market sentiment. The accumulation of positive factors in 2024 is expected to provide support for the upward valuation of the A** field.
* |Station cool Hailuo production |Zhang Wenling