The depressed market and the low P/E ratio for new stock issues have changed the investment strategies of some funds. The enthusiasm for "subscribing to new shares" among private equity funds is gradually increasing.
He Zhen, General Manager of Shanghai Huili Asset Management Company, recently stated that all the funds from the company's first private equity product, CITIC Huili Preferred, have already been used for subscribing to new shares. This private equity trust product was issued on June 11th this year and established in July, raising approximately 600 million yuan.
"We remain cautious about the secondary market trends. To avoid market risks, all the funds have already been used for subscribing to new shares," He Zhen told the Shanghai Securities News. This former star fund manager had previously revealed that his first private equity product would focus on investing in leading stocks in the consumer services, real estate, and machinery industries.