At the beginning of the new year, the public offering market was very lively. On February 19, 24 new ** were launched in a centralized manner, and on the whole, the number of new equity ** accounted for nearly 70%, which means that public offering institutions are actively laying out the equity market. On February 20, four more products, including the CEIBS CSI All-Index Software Development Index A, E Fund Hang Seng Hong Kong Stock Connect High Dividend and Low Volatility ETF, Western Profit Research Select A, and China Commercial Interbank Certificate of Deposit Index 7-day holding, were launched at the same time. At the same time, important information came from the regulators. On the first trading day of the Year of the Dragon, the China Securities Regulatory Commission (CSRC) issued a heavy statement that it will speed up the registration rhythm of public equity products, further enrich the supply of broad-based index products and corresponding option products, and strengthen coordination with relevant departments to promote the introduction of more medium and long-term funds into the market.
We have been vigorously issuing equity products", a leading public offering person in Beijing told the 21st Century Business Herald reporter that active and passive equity products are the focus. A person related to a large ** company in Shenzhen said that at present, it may focus on ETF and bond-related products. The reporter learned from many sources that in 2024, the public offering is generally optimistic about the long-term development trend of the equity market, and some public offerings will take the index business as one of the main force points, and will continue to strengthen product innovation and differentiated layout to provide investors with diversified allocation tools.
Figure: Year of the Dragon**Detailed data**: wind).
24 ** were released on the same day
On the first trading day of the Year of the Dragon, market sentiment was high, and the public offering** also hit a new high in recent years.
On February 19, the first batch of products tracking the CSI A50 Index, such as CSI A50 ETF E Fund (563083), were put on sale, becoming the protagonist of the "Spring Festival File"** issuance.
It is reported that the 10 A50 ETFs were approved on February 2, and the approved managers include E Fund**, Huatai Barry**, Fuguo**, Morgan**, Harvest**, Ping An**, Dacheng**, ICBC Credit Suisse**, Yinhua**, Huabao** and other ten ** companies. *According to the contract, the management fee rate of this batch of CSI A50 ETFs is 015% with 005%。In the eyes of industry insiders, this may open an era of low fees for ETF issuance.
In addition, in terms of the timing and scale of issuance, the 10 managers are also in lockstep, all of which are from February 19 to March 1, with a maximum fundraising limit of 2 billion yuan. This batch of ETF products alone may bring 20 billion yuan of incremental funds to the market.
The CSI A50 Index selects the 50 largest market capitalization companies** from the CSI** industry leaders as the index sample to reflect the overall performance of the most representative leading listed companies** in various industries. On the whole, the index constituent stocks are well-distributed by industry, with prominent leading attributes, and are included in ESG screening rules to further optimize the sampling method.
At present, the valuation of the CSI A50 Index is at a historically low level. As of Feb. 6, more than half of the index's constituent stocks had rolling P/E ratios below the 15% percentile since 2010. Recently, the positive factors in the market have increased, investors' cautious expectations have been restored, and broad-based indices such as CSI A50 are expected to continue to benefit from the domestic economic rebound.
Lin Weibin, General Manager of E Fund** Index Investment Department, said that the issuance of CSI A50 ETF E Fund and other products will help facilitate the allocation of domestic and foreign long-term funds to A-share core assets, and further play the function of medium and long-term capital allocation of index products and services.
On the same day as the first batch of CSI A50 ETFs, there were also 14 public offerings**, including 4 passive index bonds, hybrid bonds, mixed bonds, medium and long-term pure bonds**, and 1 QDII index**. ETFs and bonds are the focus of issuance
Among the 28 new ** products issued in the Year of the Dragon, there are 16 index***, 7 pure bond**, 3 partial equity hybrid**, and 1 hybrid FOF (** of **) QDII (Qualified Domestic Institutional Investor) **. On the whole, the number of new equity issuances accounts for nearly 70%, which means that public offering institutions are actively deploying the equity market.
A-shares can be expected in the Year of the Dragon", said Li Zhan, chief economist of the China Merchants Research Department, and the endogenous growth of the economy is expected to be about 4 in 20246%, supplemented by policy efforts, is still expected to achieve a growth rate of about 5% throughout the year. It is expected that the second quarter will be the high point of the annual growth rate, and the impact of the base in the second half of the year will weaken, and the growth rate will stabilize in the third and fourth quarters. In terms of policy, Li Zhan suggested paying attention to the following positive factors that may appear: first, to stabilize the capital market, second, to pay attention to the possibility of comprehensive interest rate cuts, and third, to optimize real estate regulation policies.
Compared with 2023, Li Zhan believes that in 2024, market investment will see improved earnings, marginal policy improvements, and valuation repairs. As the economy continues to recover steadily, the earnings of all A-shares will improve significantly compared with 2023. In addition, the continuity and stability of internal policies will be significantly enhanced compared with 2023, and the constraints of external interest rate hikes will be eased.
From the perspective of the type of issuance after the Spring Festival, some of them are making efforts to lay out passive indexes.
In recent years, the A** market has continued to be the best, but the share of ETF products has grown against the trend by virtue of the advantages of transparent positions and clear style, which has played the role of market stabilizer and ballast stone to a certain extent, helping the steady development of the capital market.
Industry insiders said that ETFs and indexes are gradually becoming the first choice for institutional and individual investors to allocate assets, and there is still a lot of room for the future.
In addition to equity, the number of bonds** accounts for nearly 30%, which is also the key direction of various public offering institutions. The bond bases of 7 institutions, including China Commercial **, Penghua**, CCB**, Cathay Pacific**, Taikang**, Changsheng** and China Universal Wealth**, were launched on February 19 and February 20 respectively. In the past two years, bond-type ** has become the main force of new issuance**, especially in 2023, the proportion of bond-type ** issuance share in new issuance is as high as 7460%, the highest in the past 10 years. Industry insiders believe that because the performance of bond ** is relatively stable, it can also meet the investment needs of prudent investors, so it has more advantages in the new **. "Equity assets cost performance improvement", Caixin ** believes that in the short term, the overall valuation of the equity market is low, the investment cost performance of public offering ** is improved, the investment opportunities of the subdivision track are increased, and the investment win rate is in an upward channel. In the medium and long term, as an important starting point for residents' wealth management, diversified products can meet the allocation needs of different investors.
Article**: 21st Century Business Herald).