There are more than 200 billion bullets left in the A-share market

 There are more than 200 billion bullets left in the A-share market

Fall down, lose, not panic

I havent seen such a scene for many years. Its a full stop. Everything is green. Today is a full stop, Mr. Yu, a shareholder, wrote in his wechat circle of friends on the morning of February 3.

He told the times weekly that before the Spring Festival, holding shares had become the consensus of securities companies, institutions and most fund managers. At that time, there were frequent fund blasts and hot spots in the market. He also felt that the economy was expected to be better and he had confidence in the future market, so he kept more than 80% of his positions and lost more than 400000 yuan this morning.

Panic? Has the position been reduced? Time weekly asked.

Its true to lose, but its useless not to panic. Didnt the regulators and the exchange send out documents two days ago? We call for a rational view of the impact of the epidemic and rational investment. Whats more, the stocks that I want to sell cant be sold. For those that havent, there are two pharmaceutical stocks, one of which is trading up, and the other is up 5%. Im still reluctant to sell them, he replied.

Find a reason not to panic

Another shareholder told the times weekly that the stock market on the morning of February 3 was better than expected. On the one hand, it is really positive that regulators, exchanges, brokers and other institutions have done a lot of work. The central bank has released liquidity. It is said that the CSRC has also urgently asked for restrictions on short selling of securities lending. These are substantive actions to protect market stability.

With reference to the extraordinary measures taken by the regulators in recent years, we are confident that we can maintain the decline in policy, said the head of the asset management department of a securities firm in Shanghai.

On the other hand, investors had expected before the big drop. Although the opening drop on February 3 was large, it was not unexpected.

In addition, some positive phenomena gradually appeared in the subsequent trading, such as the opening and closing of some trading stocks, the closing at noon, the number of rising stocks increased compared with the opening, and the growth enterprise market took the lead in recovering.

If the market is hot and the profit-making effect is still there, it will help reduce the panic atmosphere, said a private equity person after the noon closing on February 3.

Whether the fund can give confidence

Capital is an important manifestation of market heat.

As of the noon closing on February 3, the trading volume of the two markets had no obvious abnormality in the total value. However, on a closer look, the trading volume of Shanghai Stock Exchange 50 half day has exceeded that of the last trading day before the Spring Festival; the growth enterprise market has shrunk significantly, which is the opposite of Shanghai Stock Exchange 50. It is expected that the trading volume of the whole day is half of the trading day before the Spring Festival.

From this point of view, investors are still a little bit reluctant to fight and have not completely lost confidence, said the head of the asset management department of securities companies mentioned above. In addition, as of the noon closing on February 3, statistics show that the net inflow of funds from Beishang is about 7 billion yuan.

However, some investors are worried that on February 3, due to the large amount of redemption by funders, fund managers were forced to sell, which further pressured the market the next day.

Time weekly reporters privately understand that in the morning, Jimins reaction to the market was not exciting, and several companies with more equity products did not panic to redeem.

Some investors believe that equity funds are generally in high positions before the Spring Festival, and the market plummeted after the festival, but they have no money to copy the bottom.

So, how many bullets are there for public funds to enter the market?

According to a statistical report obtained by the reporter of the times weekly on February 2, Galaxy Securities Fund Research Center calculated the difference between the existing position proportion of each stock in the four seasons report 2019 and the upper limit of the share proportion specified in the fund contract, and concluded that the remaining funds available to purchase stocks by the end of the four quarters of 2019 were 140.18 billion yuan. Among them, the remaining capital of stock fund is 30.436 billion yuan, and the remaining capital of mixed fund is 109.744 billion yuan.

The equity oriented fund raised and established in November and December 2019 without quarterly report, with total assets of about 118 billion.

In addition, in January 2020, a total of 41 equity oriented funds were established, raising 89.579 billion assets. These funds should not have time to build large-scale positions, and they can also build large-scale positions if there is a relative low point in the stock market after February 3, which is 53.747 billion yuan according to the 60% ratio.

In total, it is estimated that the largest amount of funds available for public funds to buy shares after the Spring Festival is about 217527 million yuan.

On February 3, 2020, the peoples Bank of China launched a 1.2 trillion yuan open market reverse repurchase operation to maintain the reasonable and sufficient liquidity of the banking system and the stable operation of the money market in the special period of epidemic prevention and control.

On March 3, Yang Delong, chief economist of Qianhai Kaiyuan, commented that, given that there are 1.05 trillion yuan of reverse repo due and only 150 billion yuan of actual net investment left, it is suggested that the central bank should reduce interest rates and standards to boost market confidence and economic growth, and cut taxes and fees substantially to benefit the people.

Source: responsible editor of time weekly: Ren Hui ufe63 nbj9607