After the Lunar New Year, the continued rebound of the A-share market has also warmed up the new fund issuance market.
On February 26th, 22 new funds made their debut on stage (only the main share is counted, same below), joining the army of issuances. On the first Monday after the Spring Festival, 24 new funds hit the beach for issuance, the number of funds making their debut even set a new historical record.
Statistics show that there are currently 115 new funds being issued, of which equity funds have become the mainstay.
22 new funds make their debut
On February 26th, 22 new funds celebrated their concentrated debut, becoming another hot period after the Dragon Year Spring Festival.
Among these 22 new funds, many are equity funds, such as China Merchants Return Select, Golden Eagle Technology Innovation, Changxin Advantage Industry, CITIC UBS Great Trust Return, and China Life Anbao High-End Equipment kick-starting their collection.
From the fund managers' perspective, many are managed by performance-excellent fund managers. Golden Eagle Technology Innovation Mixed Fund proposes Chen Ying, the 2023 stock fund champion, as the fund manager. Public information shows that Chen Ying is a rare investment talent with both "industry + finance" experience, who seeks absolute return in investment, favoring a combination of top-down and bottom-up approaches, looking for companies with relatively large market expectation differences.
In addition, Qiu Fupeng, the proposed fund manager of CITIC UBS Great Trust Return, is also a strong player. He regards the valuation cost-effectiveness as the core of constructing a portfolio. Xu Wangwei, the proposed fund manager for Changxin Advantage Industry, also has relatively outstanding historical performance.
In terms of fixed income products, medium and long-term pure debts are still mainstream. Offerings include Jiashi Stability 7-month Closed Pure Debt, Yinhuaclear Crystal Selection, Zhongjia Rui Ying Pure Debt, Huitianfu Fengthai Pure Debt, etc. "Fixed income+" varieties were not absent, including debt-oriented mixed funds such as Haifutong Xinying 6-month Holding, Vanke Huicheng Return Balanced One-Year Holding, and secondary debt funds such as Anxin Longxin Enhanced on the list.
Furthermore, in terms of index products, passive index funds such as Southern CSI Robot Index, Tianhong SSE Science and Technology Innovation Board 50 Constituent Index, Dacheng CSI Construction Machinery ETF, Vanke CSI Dividend ETF, Southern CSI All-Share Computer ETF, etc., also celebrated their debut.
Market warms up, fund companies push for equity funds
It is worth mentioning that with the continuous warming of the market, the signs of fund companies deploying equity funds are becoming more obvious.
According to Wind data, as of now, there are 115 funds being issued, with equity varieties reaching 77, accounting for nearly 70%. Among them, index funds reached 42, accounting for more than half among equity varieties, compared with the post-Spring Festival issuance in previous years, fund companies have significantly increased their efforts in deploying index products.
Fidelity Funds believes that the core of the recent market rebound lies in policy support for market liquidity, reversing negative price feedback, and boosting market confidence. Currently, the A-share valuation, risk premium, and other indicators still offer a good investment value for money, while the sustainability and resilience of future market performance will depend more on the upcoming Two Sessions policies and the verification of more economic data.
Bosera Funds has stated that the current market pessimism has been fully released, and the liquidity impact brought by leverage products is nearing an end. With substantial inflow of market support funds, the stock market bottom is being progressively discovered, and there is optimism for the following market trends. The valuation of most industries is already at a historical low, and the main factors affecting market style will be the slope of economic recovery and the strength and weakness of the technology industry trend. The subsequent local and national Two Sessions will be an important juncture to observe policies for stable growth.
Galaxy Funds also expressed that from a medium-term perspective, future attention can be given to the implementation of stock market-related policies, the entrance of new funds, the strength and pace of economic growth supported by fiscal policy in the first quarter, the recovery of economic data, as well as the trend of U.S. Treasury yields.
Regarding the A-share market for 2024, Chen Ying stated that the general direction of the index may perform better than in 2023. It is likely to be a volatile market, moving sideways or possibly edging upwards, but the magnitude is expected to not be too large. Investment will need to be more balanced. He believes that the technology sector is an important active component of the capital market and may be a field worthy of long-term focus.
Source: China Fund News
