-- Basic Market and Fund Market Daily Report (February 17, 2012) Sina Fund Research Center
I. Major Events in the Fund Market
1. "New Stock Trading Gains" Make a Comeback: The closing price of Langa Information on February 16th rose by 82.53%, marking the highest yield of 1.80% for online subscription and 9.5% for offline subscription within the year. BaoYing Resource Selection Stock (up 2.77% in one day) and BaoYing Hongli Income Hybrid (up 2.84% in one day), which held more shares of this stock, topped the earnings list among stock-type and hybrid funds respectively. (International Finance News)
Commentary: Since the beginning of the year, six new stocks have broken their issue prices on the first day, resulting in considerable losses for many participating funds. As the reform of the new stock issuance system progresses gradually, the returns from the primary market will no longer be risk-free transactions. Rational pricing and accurate judgment of the intrinsic value of listed companies will become the core for funds to gain good returns when participating in the new stock issuance market. Meanwhile, funds holding more locked-up stocks may face greater uncertainties compared to other funds, and investors should be aware of the risks.
2. Shanghai CSRC Cracks Down on Illegal Fund Companies: Illegal funds, with their proclaimed characteristics of "low threshold, high returns, and low risk," have disrupted the basic rules of investment, attracting many investors who lack knowledge about investment and financial management. These illegal entities register as "XX Fund Company" domestically or overseas (such as in Hong Kong), falsely claiming to be raising funds for domestic "XX Fund Company" or legitimate Hong Kong funds, leading to numerous investors being defrauded and disrupting the normal order of the capital market. (Shanghai Securities News)
Commentary: Investors should exercise extra caution when distinguishing the legality of fund companies. It is recommended to purchase funds through reputable sales channels to protect your interests, such as direct sales from fund companies, brokers, banks. In the future, third-party fund sales companies will also open up, including Chengdu Securities Company account opening.
3. Continued Demand for Expansion: Difficulties in Slowing Down New Fund Issuance in 2012: In 2011, the total number of new fund issuances broke the 200 barrier for the first time. Various signs indicate that in 2012, the issuance of new funds may be unstoppable, making it another year of "explosion" for new funds. As of February 16th, 21 funds were simultaneously issued (A and B categories merged,分级funds counted as one), maintaining the relatively dense issuance pace since 2011. (China Securities News)
Commentary: Data shows that there are nearly 120 "inventory" funds waiting to be digested, including those "pending approval" by the CSRC and those "approved but not yet issued" last year. Expectations for a slowdown in fund issuance might be dashed.
II. Investment Strategy Summary
The half-year line serves as an important resistance level, breaking through which is unlikely to happen overnight. The current market has entered a period of multi-directional trading, and short-term fluctuations and adjustments are inevitable. The market shows characteristics where large-cap stocks outperform small- and mid-cap stocks, and value stocks outperform growth stocks. Investors with higher risk tolerance can build positions incrementally at the current point, focusing on equity funds and index funds with large-cap and value styles.
Key Fund Recommendations
Fund Abbreviation Average PE Average PB
Teda Macro Riches Large Cap Index 9.76 1.39
Galaxy CSI 300 Index 9.87 1.48
ShenWan LingXin CSI 300 Value Index 9.89 1.46
Financial ETF 9.93 1.44
Guotou RuYin CSI 300 Financial Real Estate Index (LOF) 9.94 1.42
Value ETF 9.90 1.49
Cycle ETF 10.12 1.48
Responsibility ETF 10.07 1.50
BOC SSE State-Owned Enterprises 100 ETF 10.33 1.45
Jiasih Fundamental 50 Index (LOF) 10.45 1.28
Great Wall Brand Selection Stock 9.50 1.57
Penghua Shengshi Innovation Stock (LOF) 10.97 1.51
Guangda BaoDexin Quantitative Stock 11.39 1.55
Bosera Theme Industry Stock (LOF) 13.04 1.66
III. Basic Market
On February 16th (Thursday), the market did not continue its upward momentum and experienced violent fluctuations. The Shanghai Composite Index closed at 2356.86 points, down 0.42%; the Shenzhen Component Index closed at 9622.83 points, down 0.52%. Most sectors fell, with the best-performing ZhenGong Utility gaining 1.50% and the worst-performing ZhenGeng Energy falling 0.96%. The two markets traded volumes of 83.758 billion yuan and 79.894 billion yuan respectively. The bond market fell across the board, with the ChinaBond Government Bond Index, ChinaBond Total Index, ChinaBond Financial Bond Index, and ChinaBond Corporate Bond Index falling 0.03%, 0.06%, 0.08%, and 0.09% respectively.
IV. Fund Performance
On February 16th, influenced by the basic market, index, stock, and hybrid funds fell 0.44%, 0.34%, and 0.27% respectively; bond funds remained flat; money market funds rose 0.01% with a seven-day annualized return of 4.87%. On February 15th, QDII funds rose on average by 0.83%.
V. Fund Dynamics
1. Changes in Fund Managers
Overview of Fund Manager Changes
Fund Abbreviation Change Type Manager Name Date Note Other Co-Managing Fund Managers
Jinying CSI Technology Index Enhanced (210007) Added Zhang Yongdong 2012/2/16 9 years securities industry experience Zhu Dan
Xinda Ausin Essential Allocation Hybrid (610002) Acting Li Kunyuan 2012/2/15 Leave Wang Zhanqiang