With the continuous amplification of the profit-making effect of public funds, the inflection point of residents asset allocation is coming, and the upsurge of raising funds is surging. Under the policy keynote of no speculation on housing and housing, the marginal attraction of real estate has declined, and the scale of non-standard financial management has shrunk. The risk-free rate of return has been declining year by year, and the return rate of Monetary Fund and bank financial management has been declining. The breaking of rigid cashing and the management of net worth have changed the traditional image of capital preservation. The scarcity of low-risk, high-yield assets urges residents to seek income through multiple channels, which lays the foundation for the continuous transfer of residents funds into the equity market. Driven by the significant profit-making effect of public funds, all kinds of funds swarmed into the fund issuance market, setting a number of records, and fund explosion has become a common occurrence.
The current economic shift to innovation driven and high-quality development requires a broad, deep and prosperous capital market. At the same time, the registration system has been comprehensively promoted, the capital market mechanism has been increasingly improved, and the attraction of equity assets has greatly increased. Driven by the long-term profit making effect, the changing trend of residents asset allocation and the continuous flow of long-term money into the market, the scale of 18 trillion may just be the prelude to the era of public offering.
Source: Ren Hui, editor in charge of China Securities Journal_ NBJ9607