The four major sci-tech innovation 50ETFs will start the”market era” on November 16 and the long-term allocation of funds is in sight
Economic Observer reporter Hong Xiaotang November 16, Science Innovation Board50ETF officially landed on the exchange market.
According to the issuance arrangement, four public offering institutions of China Asset Management, ICBC Credit Suisse Fund, Huatai Bai Rui Fund and E Fund Fund issued four SSE Sci-tech Innovation Boards50ETF (hereinafter referred to as Kechuang 50ETF) was launched on this day.
In the eyes of industry insiders, the Science and Technology 50 Index compiled from core indicators such as liquidity and market value is expected to help investors screen high-quality companies on the Science and Technology Board, and the Science and Technology 50 ETF is clearly an important investment tool.
On the one hand, the listing of the Science and Technology 50ETF will enable securities investors to participate in passive investment in the science and technology board market at a low cost through the secondary market; on the other hand, the Science and Technology 50 ETF after listing will not The implementation of scale restrictions will further provide effective tools for institutional investors to allocate the science and technology innovation board market.
The”on-the-market era” of Kechuang 50
In the eyes of industry insiders, the listing of Kechuang 50 ETF will provide allocation for investors in the securities market The Sci-tech Innovation Board is a more convenient and low-threshold channel.”The science and technology innovation board itself has an investment threshold, but the investment threshold of the science and technology 50ETF in the secondary market is even lower, and it is suitable for small and medium investors who want to allocate the science and technology board to participate.” A public offering salesperson involved in the issuance of the science and technology 50ETF”Moreover, OTC subscriptions are also expected to increase, further increasing the scale of the entire science and technology 50ETF.”
China Securities Investment and Investment Securities analyst Zhang Yulong said Nasdaq pointed out that the Science and Technology 50 Index is expected to help investors select good companies on the Science and Technology Innovation Board.
“Referring to the development of Nasdaq in the past 35 years, there are both winner-takes-all and sudden emergence. On the one hand, the market value of Nasdaq is very concentrated, with the top less than 5%companies occupying 70%The above market value, the more the leader, the more profitable it is, and the market gives higher valuations. In the short term, the position of the leader company is difficult to shake. Therefore, the establishment of Science and Technology 50 with market value and liquidity as the core can select the best quality. Company.” Zhang Yulong said.
“On the other hand, with the upgrading of technology, we can see that the heavy stocks of Nasdaq in the first half are Yahoo, Weiyawei Communications, and Net Storage, etc., and the heavy stocks in the second half It is Apple, Microsoft, Google, etc. Correspondingly, the quarterly-adjusted Science and Technology 50 Index is endowed with flexible evolutionary capabilities, which can incorporate new technology forces in a timely manner and share the dividends of their development.” Zhang Yulong further stated.
For the timing of the Science and Technology 50 ETF, the fund manager of China Science and Technology 50 ETF was honored to believe that in terms of short-term trading conditions, asset prices will be affected by market sentiment, capital flow, volatility and other information in the short term. Investors who want to invest in the Science and Technology 50 ETF can understand the market sentiment through changes in the moving average trend, volatility, and inflow and outflow of the Science and Technology 50 ETF funds to assist short-term decision-making and capture the short-term opportunities of the Science and Technology 50 ETF.
In addition, the Science and Technology 50 ETF will also provide investors with more arbitrage space, which will also stimulate the increase of the liquidity of the Science and Technology 50.
“After the listing of the Kechuang 50ETF, it is expected to meet the conditions to be included in the margin financing and securities lending target. With the help of the two financial trading rules, the investment strategy of the Kechuang 50ETF can be enriched. For example, buy the Kechuang 50ETF at a low point in the day, and the high Dianrong Securities sells the Science and Technology 50 ETF, completes the T+0 transaction, and locks in the income. The ETF bought on the same day (or financing purchase) can be directly used for bond repayment.” Rong Ying said.
“For professional investment, you can also use discount and premium arbitrage strategies to enhance returns. Under the premise that there is a share of the Kechuang 50ETF, when there is a premium in the Kechuang 50ETF, sell your holdings ETF shares are purchased in time at the same time to lock in the premium.” Honored said, “On the contrary, when the Kechuang 50 ETF has a discount in the market, the ETF shares held by it will be redeemed and bought in real time to lock in the discount and pass the ETF discount. Premium arbitrage will increase the income of holding the Science and Technology Innovation 50 ETF.”
However, some investment researchers believe that the newly listed ETF will not rule out becoming a tool for some shareholders of the Science and Technology Innovation Board to reduce their holdings, but this is also Will reduce the impact of holding reduction activities on the market.”Science and innovation board companies generally have a short time to go public. Some companies’ original shares are entering the lifting period. Shareholders of some 50 sci-tech shares can also be sold on the secondary market through stock exchange for ETF shares. This may be a certain degree. The upward reduction of the impact on the volatility of a single stock’s stock price.” According to an ETF fund manager of a public equity institution in Beijing, “and brokers will also provide ETFs with liquidity support such as market making, which has also played a role in stabilizing the market impact.”
< p>”This kind of demand will also promote the scale of ETFs, which is conducive to the further development of passive investment on the Science and Technology Innovation Board.” The fund manager pointed out.
Passive investment stocks surge
In the eyes of industry insiders, the listing of Kechuang 50ETF also urges more passive investment and allocation capital to flow into the division. Innovation board market.
Because after the listing, institutional investors can purchase the Science and Technology Innovation 50 ETF through off-exchange subscriptions. At the same time, feeder funds may be issued in the future to further increase the scale of passive investment on the Science and Technology Innovation Board and increase the allocation of institutional investors. ratio.
In fact, the current institutional investors’ allocation to the Sci-tech Innovation Board is still relatively limited.
Data shows that as of the end of the third quarter of 2020, the market value of the science and technology innovation board holdings in the publicly offered heavy stocks accounted for only 1.66%. Zhang Yulong believes that the current reasons for restricting the allocation of sci-tech innovation boards by institutions mainly come from multiple sources.”First, the Sci-tech Innovation Board has just been launched for more than a year, with fierce market competition and high volatility. Institutions have not yet in-depth research on the subject of the Sci-Tech Innovation Board; second, the scale of the Sci-Tech Innovation Board is relatively small, and it is difficult for institutions to centrally deploy. .”
In his view, the long-term funds allocated to the Sci-tech Innovation Board are expected to continue to increase.”In the future, with the increase in the number of sci-tech innovation board stocks and the expansion of the research coverage of individual stocks, more high-quality sci-tech innovation board targets will be discovered, and there will be more room for institutional allocation.” Zhang Yulong said,”With the release of the STAR 50, the STAR 50 ETF Attract long-term capital to enter the market. In addition, science and technology board stocks such as Kingsoft Office have been included in the MSCI system. With the opening of the Land Stock Connect, more foreign capital will also participate in entering the science and technology board.”
Zhang Yulong believes that it needs to be viewed objectively.”On the one hand, more tradable shares will be generated to cooperate with incremental capital to enter the market; on the other hand, there are more institutional investors on the Science and Technology Innovation Board. From the perspective of large-scale holdings reduction, the impact of the reduction on the index is short-term and small.” Zhang Yulong said.
According to the reporter’s information, after the four first batch of 50 ETFs listed above, there will be more public offering institutions trying to issue similar products.
“Although these four public offerings have the first mover advantage, the current leading public offering institutions should all have such intentions. In the future, the number of Kechuang 50ETF products may also increase. Competition will continue to intensify.” A large public offering product person in Shanghai said,”This trend will also further stimulate more passive investment funds to enter the science and technology innovation board market.”