Foreign Investment Banks Sing More Short

The analysis points out that foreign investment banks are concentrated in the short term.

After continuous singing, Goldman finally launched in November 10th, when Goldman Sachs undertook ICBC's H-share for 1 billion 500 million dollars.

On the night of November 14th, Bank of America said it would reduce the 10 billion 400 million shares of H-shares by private placement, and it was expected that the paction would bring in 1 billion 800 million dollars of after tax profits.

If that goes well, the deal will be completed in November.

CCB has also confirmed that the Bank of America will reduce its holdings of H-shares.

According to statistics, from 2009 to the present three years, foreign banks have reduced their holdings to HK $223 billion.

Only the Bank of America has cash in HK $143 billion 300 million.

It has little impact on A shares.

Although the reduction of foreign investment banks is not to ignore the value of China's banking stocks, but to cash in to make up for their losses, the impact of the two market reduction on stock prices is still very obvious.

In November 10th, by the bad news of Goldman Sachs's reduction, ICBC H-share opened up at HK $4.83 and closed at HK $4.74, down 8.67%.

Public data showed that the European debt crisis led to a deterioration of the market environment. Goldman Sachs lost a net loss of $393 million in the three quarter of this year, which is Goldman Sachs since 2008.

The ICBC H-share crash also passed to A shares. On the 10 day of November, the A shares of the ICBC went lower and lower, closing nearly 3% at the close.

As the heavyweight fell sharply, the Shanghai Composite Index fell nearly 2% on the same day and fell for the first time in the current round of rebound.

Then, in the context of the beginning of the reduction of foreign investment banks, can A shares go upstream? XinDa securities analyst Liang Hao said in an interview with reporters, "although foreign investment banks reduce their holdings in H-shares, A shares will also have a certain impact due to the linkage of A and H-shares.

It is worth noting that the main reason for the reduction of H-shares by foreign investors is their own capital needs, rather than not optimistic about the banking sector, so the impact on stock prices is short-term and relatively limited.

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In the A shares, many companies are held by QFII, will they follow suit under the leadership of foreign investment banks such as Goldman Sachs and Bank of America? Will QFII heavy duty stocks face pressure reduction?

"Because of their own capital needs, do not exclude QFII cash in A shares."

The strategy analyst said, "Goldman Sachs to reduce the industrial and commercial bank is to cash in to make up for its losses.

Perhaps more foreign institutional investors will choose to cash in A shares because of capital needs, and the listed companies may face the threat of falling share prices.

And the recent big market continued to rebound, which provides a better opportunity for foreign investors to reduce A shares.

According to the statistics of journalists, QFII shares accounted for the top ten of the largest share of circulating capital, and bank shares accounted for half of the seats.

Among them, Holland commercial bank holds Beijing bank's circulation shares up to 16.07%, accounting for the top of QFII shareholding ratio.

In addition, Societe Generale, Bank of Nanjing and Ningbo bank were held by one QFII, while Huaxia Bank was held by three QFII.

QFII is also a major investment target for small and medium sized boards and gem which are more volatile than banks.

Yongqing environmental protection and Pathfinder of gem are met by Columbia University, while the middle and small board of Zhong Shun Jie Rou is held by Morgan Stanley and Merrill Lynch International.

Insiders interviewed by reporters said, "although some companies are heavily held by institutions, the pressure to reduce them is different.

If Yongqing's environmental protection and Pathfinder are held by Columbia University, the reduction pressure is relatively small, while some listed companies held by European banks may face strong pressure of reduction.