In addition, the public offering product redemption tide caused by the market fluctuation also brings pressure to the liquidity management of public offering products. Many large public offering institutions, such as Xingquan, e-fonda and huitianfu, have announced to subscribe their own equity products with their own or senior management funds. With the efforts of many parties, the three major stock indexes of A-share market rebounded in an all-round way on February 4, and the liquidity and operation pressure of public offering products were relieved to some extent.
All night operation
On February 3, after the closing of A-share market, almost all the public offering operation departments worked overtime until the late night.
Its just as busy as dealing with the epidemic with tense medical resources. At this time, the operation resources are insufficient. There are a lot of data and details to be processed, but the personnel resources are not as complete as usual. We work overtime until very late, and some fund companies work directly until the latter half of the night. Wu Tong (pseudonym), head of the operation of a public offering agency in Beijing, said frankly.
The main reason is that the staff is not enough, and some custodian bank personnel are not in place. The situation of each institution is different, sometimes no one can be found, and some institutions have no people on duty, and one person can do several peoples work, which is totally ignored, said an operator of a public offering institution in Shanghai
According to Wu Tong, the reasons for this phenomenon come from many aspects. First, after the opening of the A-share market, some fund products have been redeemed on a certain scale, increasing the workload compared with the past. Second, the adjustment of opening date leads to the re checking of interest and other subtle data, resulting in a straight-line increase of related operation workload. Third, many company operators work remotely at home, and the staffing of the custodian bank is not saturated, so there is a delay in communication and docking.
If there is a commission check problem, it will take several hours. Wu Tong said frankly.
According to the reporter, in order to cope with the epidemic and reduce the flow of personnel, some public institutions have adopted the working mode of operating personnel opening remote home office, while most of the trusteeship banks still require to work in the office.
In response to the epidemic, most fund companies work from home, because in order to reduce the risk of going out to reduce the epidemic, some small fund companies may work overtime in the office if their style is conservative or their IT ability is weak. Custodian banks basically work in offices, because most of them use intranet for safety, but not all of them are on duty. Some banks are on duty and some are at home, Wu said
It is the accumulation of many factors mentioned above that leads to the insufficiency of data reconciliation processing efficiency, but there are still some problems in the net value of public offering products.
Last night, there was a situation that the data needed to be connected with the custodian bank was still too late to contact. Many public offering backstage employees worked overtime all night, and some TA registration didnt start until 5 or 6 a.m. the next day. Compared with the usual, the net value of many products didnt come out until the next day, Wu said
This days situation is also very special, mainly because several factors are superimposed together, and many institutions are too late to prepare for the opening day after the holiday, and the connection and plan with the custodian bank are not well done. Wu said.
Facing the pressure of redemption
In addition to the huge workload in the operation process, another challenge public offering institutions face is the potential liquidity risk caused by the tide of redemption.
On February 3, there were more than 3000 stocks falling to the limit. If the next day continues to fall to the limit, the fund manager has very limited room to deal with the redemption and can only deal with the subject matter without falling to the limit, which will lead to further panic in market sentiment. Fund manager of a public offering in East China said.
In order to respond to the emergency, several public offering companies announced that they would subscribe for their own products. Including Xingquan, Tianhong, e-fonda, huitianfu, Huaan and other institutions to subscribe their own equity products, and some companies include senior executives.
With the efforts of many parties, the liquidity alarm of A-share market and public offering products has been initially released. On February 4, the three major A-share indexes turned red in the morning and continued to rise in the afternoon. By the end of the day, the Shanghai index rose 1.34%, while the growth enterprise board and the small and medium-sized board rose 4.84% and 3.67% respectively.
The regulation of equity redemption scale in the whole industry is under control, and the overall scale is not small. It can be said that the industry has been under certain liquidity pressure. At this critical moment, the self subscription of the public offering industry has taken some responsibility, said a public offering person close to China Foundation Association
Source: editor in charge of economic report in the 21st century: Ren Hui, nbj9607