The evolution of investment groups in the past 30 years

 The evolution of investment groups in the past 30 years

30 years, seize the day. With the gradual deepening of the capital market reform, the continuous optimization of the investor team, the cultivation and expansion of the team of institutional investors, and the construction of a market environment in which long-term money is willing to come and stay is an urgent task.

Thirty years of hard work

After 30 years of development, the number of investors in the securities market has been increasing, and the types of investors have become increasingly rich. Various types of investment institutions, such as public offering, private placement, insurance and social security, have gradually sprung up.

In 1997, the Interim Measures for the management of securities investment funds was promulgated, marking the beginning of the rapid development of institutional investors in China. In 1998, the first closed-end fund was set up and started to operate, and professional institutional investors in a real sense were introduced. In 2001, China Securities Regulatory Commission proposed to develop institutional investors in an unconventional and creative way, and set up the first open-end fund in China in the same year. In 2004, the first sunshine private equity fund, the shenguotou chizixin (China) collective fund trust was established, which opened the prelude to the rapid development of private funds. In 2005, Huatai Property Insurance Company placed an order to buy stocks, which opened the insurance companys investment in the stock market.

With the opening of capital market to the outside world, foreign investors are growing. From the emergence of the QFII mechanism in 2002, the establishment of the RMB qualified foreign institutional investor (rqfii) mechanism in 2011, and the launch of Shanghai Hong Kong stock connect and Shenzhen Hong Kong stock connect in 2014 and 2016, more and more foreign investors have entered the A-share market, following the inclusion of a shares by MSCI, FTSE Russell, S & P Dow Jones and other international mainstream indexes.

A shares are accelerating the transition from a closed retail market to a mature institutional market. Hu Youwen, director of Anxin Securities Research Institute, said that the type, number and influence of institutional investors are gradually increasing. The A-share market has shown an obvious trend of institutionalization, and the influence of overseas funds, social security, insurance assets and bank financial management on the A-share market has been significantly enhanced.

Face up to the gap and optimize the structure

Although the proportion of institutional investors in A-share market has gradually increased, compared with the mature overseas markets, the proportion of institutional investors in China is still low.

The fact that institutional investors have become the dominant force in the stock market is a sign of the maturity of the market. Li Zhan, chief economist of Zhongshan securities, said that at present, there are some problems in the A-share market, such as the high proportion of retail investors, the lack of institutional strength, especially the lack of large capital institutions that can stabilize the market. This is an important reason for the lack of stability of A-share market.

In the view of Xiao Gang, former chairman of China Securities Regulatory Commission, with the deepening of the registration system, changes in the structure of A-share investors should be a high probability event. (next version A03)

Source: Ren Hui, editor in charge of China Securities Journal_ NBJ9607