New development funds have increased significantly
In 2020, the public fund market will achieve the double growth of management quantity and scale. The number of funds increased from more than 6000 at the end of last year to more than 7000, an increase of nearly 17%. The scale of management increased by 21%, of which the new development fund contributed the majority of the growth. As of November 30, 1320 new funds have been established this year, and the number of new funds has exceeded 1300, which has exceeded the historical record of 1153 new funds issued in a single year (the whole year of 2016), and the scale of new funds has exceeded 2 trillion yuan.
In the third quarter alone, the issuance scale of public funds reached 1.27 trillion yuan, exceeding the sum of the previous two quarters, setting a record high. Chen Dong, director of the financial products Department of liantai fund, believes that the large-scale issuance of public funds in the third quarter was mainly due to the large-scale increase in the stock market in the first ten days of July, with the CSI 300 index up 12.75% in July.
Yang Yuanchun, President of yingmi Fund Research Institute, said that this year is a big year for the issuance of new public funds. The concept of buying funds is better than investing in stocks is deeply rooted in the hearts of the people.
There is also a stock fund contribution
In addition to the increase of new funds, regulatory policies and other factors also promote the continuous rise of the stock size of public funds.
Since October 2019, China Securities Regulatory Commission has formally implemented the classified registration mechanism for conventional products of mutual funds, and cancelled the written feedback link for the declaration of public offering products included in the rapid registration procedure, so as to improve the registration efficiency. The registration period of equity, mixed and bond funds shall not exceed 10 days, 20 days and 30 days, which is more than two thirds shorter than the original registration period, and is far lower than the six-month registration period stipulated in the fund law. At the same time, the regulatory authorities require fund companies to limit the number of fixed income products to be reported through window guidance, and encourage the development of equity funds.
Yan Qingmin, vice chairman of China Securities Regulatory Commission, said recently that there are more long-term capital allocated to a shares. Compared with the beginning of 2019, the scale of equity funds has increased by 69%, and the shareholding proportion of professional institutional investors has continued to increase, and the market structure and ecology have undergone positive changes.
Since the beginning of this year, the structural market of A-share market has promoted the funds profit-making effect and become another driving force for the increase of fund scale.
Liantai Fund statistics show that in the structural market, the growth of equity funds in the first 11 months of this year is mainly active management equity funds. As of the end of October, the scale of active equity funds has increased by 32.9% compared with the end of last quarter, and the scale of passive equity funds has increased by 12.4% compared with that at the end of last quarter. The growth rate of active and passive equity funds has continued to differentiate.
Jia Zhi, executive general manager of Ping An Securities Fund research team, believes that under the structural market, the profit-making effect of equity funds is obvious, which has been widely recognized by investors, laying a solid foundation for improving the asset management scale of public funds.
In terms of fixed income funds, although the bond market has been bearish since April, the scale of fixed income funds has increased. By the end of the third quarter, the size of bond funds had increased by 4.4% compared with the end of the previous quarter. Among them, the scale of pure bond funds increased by 1.9% compared with the end of last quarter. In addition, after July, the bond market entered a volatile market, and fixed income + funds such as secondary bond base and partial bond hybrid funds were favored by investors again. At the end of the third quarter, the total scale of secondary bond based and partial bond hybrid funds reached 787.2 billion yuan, an increase of 23.1% over the end of the previous quarter. According to the data of the first three quarters, the scale growth of these two types of products totaled more than 400 billion yuan, doubling compared with the beginning of 2020.
From the industrys own factors, the rapid spread of mutual fund investment advisory business will greatly ease the pain of investors in choosing funds and bring new development opportunities for public funds. At the same time, with the aging of the population and the increasing demand for pension funds, the role of public funds in pension investment has been steadily improved, and the demand of residents pension funds allocation of public funds is increasing, which provides a broad space for the scale growth of public funds.
Equity assets are favored after breaking rigid exchange
Since April 2018, the guiding opinions on standardizing the asset management business of financial institutions (hereinafter referred to as the new regulations on asset management) and a series of supporting rules have been successively issued. The regulatory authorities have guided the sound development of the asset management industry, including public funds, by removing channel business, breaking rigid cashing, limiting term mismatch and reducing leverage ratio.
With the continuous advancement of new asset management regulations, the transformation of capital guaranteed financial products, monetary funds with rigid cashing characteristics, hierarchical funds and other products that were favored in the past accelerated, while equity asset management products were favored again.
After the new regulations on asset management and supporting rules have been issued in succession, some funds need to be replaced by high-yield assets, and the stock market and equity funds have become better acceptance varieties. In the view of general manager Liu Yiqians dual fund raising, the overall development of Shanghai mutual fund is due to the growth of general manager Liu Yiqian. From the external point of view, with the acceleration of A-share institutionalization, internationalization and marketization, the market situation has changed significantly. Ordinary investors are more difficult to invest, and their pricing advantages are obviously transferred to professional institutional investors. Individual investors are more willing to participate in the stock market with the help of asset management products, while the overall professional value of public funds is fully reflected, providing more inclusive rights and interests for investors Investment tools. From the internal point of view, with the support of all participants in the market, the overall professional image of the public fund industry is fully transmitted to the public and widely recognized by investors. Especially in the past two years, the funds earning effect has produced a huge investment attraction for investors.
However, in addition to the rapid growth of scale, challenges in various aspects have also begun to increase. Liu Yiqian believes that there are several challenges to the development of the public fund industry: first, the talent challenge, that is, the rapid growth of the industry leads to a sharp increase in the demand for talents; second, the challenge of the asset management industry, that is, the rapid growth of the public fund management participants, while the industry is accelerating the development of competitors are also accelerating; third, the challenge of anti risk ability. After all, public funds are asset-based products and need to bear market systemic risks. If the market systemic risk comes, whether investors can withstand the test still needs market test.
Wang Hua, a senior analyst of long-term funds, believes that the scale of equity funds has increased significantly this year, especially in July, with the market warming up, the scale of a single month has increased greatly, among which the contribution of new funds is also very high. At present, some equity fund positions are relatively concentrated, and most of them are in the consumer, technology and pharmaceutical sectors. Whether this convergence of investment style will lead to product homogeneity and the stampede risk when the market fluctuates still needs to be carefully observed and grasped by investors.
Source: Ren Hui, editor in charge of daily economic news_ NBJ9607