Stock classified funds bid farewell to the market and enter the stage of counting seconds

category:Finance
 Stock classified funds bid farewell to the market and enter the stage of counting seconds


In December 2nd, one belt, one road, the index of the state-owned enterprise reform, the classification of the index of the iron and steel industry of Penghua County, the one with the index of the main index, and other products, issued the implementation plan of the graded share termination operation. According to the announcement, the last trading date of the above products is December 31, 2020, the delisting date is January 4, 2021, and the listing termination date is January 5, 2021.

Shenzhen Stock Exchange has also recently issued an intensive announcement that the stock grading products, such as CITIC China Securities smart home index classification, China Merchants Securities bank index classification and shenwanlingxin Shenzhen stock index classification, have applied to Shenzhen stock exchange for termination of listing on January 4, 2021. According to the relevant provisions of the Listing Rules of securities investment funds of Shenzhen Stock Exchange, after examination, the Shenzhen Stock Exchange has decided to terminate the listing and trading of the above-mentioned funds from January 4, 2021, and the last trading date of the above products is also December 31, 2020.

As early as April 27, 2018, the guiding opinions on standardizing asset management business of financial institutions jointly issued by one bank, two sessions and one bureau (hereinafter referred to as the new regulations on asset management) requires that public offering products and open-ended private equity products shall not be graded by shares, and that the classified stock funds shall be cancelled by the end of 2020 to complete the standardization and rectification.

After the new asset management regulations, the market has already had a psychological expectation on the withdrawal of classified funds from the historical stage. The withdrawal of such products is conducive to safeguarding the interests of investors and the healthy development of the capital market. A fund analyst in Shanghai said that due to the complex design of graded funds and the instability of risk return characteristics, the product operation mechanism makes the leverage effect weaken when the net value rises, and the leverage multiple of grade B increases when it falls, which will lead to slow rise and fast fall in extreme markets, and the shortage of products is more prominent in the market bull bear conversion. The characteristics of graded funds not only easily lead to non professional investors to bear greater loss risk, but also do not conform to the original intention of public funds to stabilize the capital market and guide long-term funds into the market.

Wind data shows that as of December 1, the number of listed classified funds has decreased from 134 when the new asset management regulations were issued to 71, and the on-site scale has decreased from 56.1 billion to 29.6 billion, and the number of products and the scale of survival have shrunk by nearly 50%. The number of floor investors dropped from 1.11 million to 777000 in this years semi annual report, a decrease of more than 30%.

From the discount and premium data of class B shares of graded funds, as of December 2, the average premium rate of 71 graded B products in stock was 2.74%, which was 5.26 percentage points lower than that at the end of the third quarter. Among them, 36 graded product B shares were discounted, accounting for more than half; 31 products B share premium rate was lower than 20%, accounting for 43.66%. At present, there are only three products with B share premium rate higher than 20%.

A public fund manager in Beijing also reminded that in December this year, the hierarchical funds of many fund companies in stock withdrew from the market intensively. Some of them are about to transform into lof funds, some may choose to liquidate, and some will cancel the hierarchical operation mechanism. When withdrawing from the market intensively within a month, the most important thing for fund companies is to give risk tips to the holders. Especially, some class B shares still have high premium risk, so they should continue to remind investors to participate rationally.

From the perspective of the development process of graded funds, Chinas first classified fund, UBS Ruifu graded fund, was officially born in July 2007, which is also the first innovative closed-end fund launched after the closure market for five years. However, due to the complex operation mechanism of the nascent graded funds and the relatively unfamiliar investors, coupled with the global financial crisis in 2008, the stock market plummeted, and the management scale was less than 50 billion yuan by 2013. The development of graded funds was still in the bull market stage from 2014 to 2015. At that time, grade B created investment income far exceeding that of stock funds and became a star in the market. The total scale of such funds quickly exceeded 100 billion and 200 billion yuan, and jumped to 457.7 billion yuan in the mid-term report of 2015. Considering that the stock market plummeted in late June of that year, the scale of graded fund may exceed 500 billion yuan at the peak of the stock market of that year Yuan. However, in the second half of 2015, the stock market plummeted, and the graded funds frequently triggered a downward turn. The amplification effect of class B shares when they fell led to heavy losses for some holders. In July of that year, the CSRC suspended the registration of such products and carried out standardization and rectification work on the stock products. In November 2016, Shanghai and Shenzhen stock exchanges issued the guidelines on the management of graded fund business, which raised the investment threshold of such products and required investors to sign risk disclosure statements. At the same time, the regulatory authorities also guided the industry to take various measures to guide fund companies to reduce the scale of graded funds in the market in an orderly manner Modules also show a downward trend year by year. Source: Ren Hui, editor in charge of Securities Times_ NBJ9607

From the perspective of the development process of graded funds, Chinas first classified fund, UBS Ruifu graded fund, was officially born in July 2007, which is also the first innovative closed-end fund launched after the closure market for five years. However, due to the complex operation mechanism of the nascent graded funds and the relatively unfamiliar investors, coupled with the global financial crisis in 2008, the stock market plummeted, and the management scale was less than 50 billion yuan by 2013. The development of graded funds was still in the bull market stage from 2014 to 2015. At that time, grade B created investment income far exceeding that of stock funds and became a star in the market. The total scale of such funds quickly exceeded 100 billion and 200 billion yuan, and jumped to 457.7 billion yuan in the mid-term report of 2015. Considering that the stock market plummeted in late June of that year, the scale of graded fund may exceed 500 billion yuan at the peak of the stock market of that year Yuan.

In November 2016, Shanghai and Shenzhen stock exchanges issued the guidelines on the management of graded fund business, which raised the investment threshold of such products and required investors to sign risk disclosure statements. At the same time, the regulatory authorities also guided the industry to take various measures to guide fund companies to reduce the scale of graded funds in the market in an orderly manner Modules also show a downward trend year by year.