International Financial Predators Successfully Copy The Bottom And Escape The Roof &Nbsp; QFII Gains Amazing In Ten Years.

In April 3rd, the SFC issued

Since the QFII gate opened in 2002, QFII has just entered China for 10 years, and the QFII quota has increased from the initial $4 billion to the current US $80 billion.

During each period, the expansion of QFII investment quota will arouse the debate about the market of foreign capital.

This time, QFII, who likes to buy blue chips, can buy A shares at the bottom of the stock market. If it costs less, it can become a shareholder of large state-owned enterprises.

QFII mostly focuses on long-term investment and value investing.

But long term investment and value investment are not equal to holding shares all the time. High throwing and low smoking and value speculation are also QFII's skills.

This is evident from the Swiss bank's investment in Baoshan Iron and Steel Co.

In March 31st this year, Baosteel released the annual report of 2011. The total number of shares held by QFII in Baosteel was more than 100 million shares, all of which were newly purchased shares in the 4 quarter of last year, of which the Swiss bank held 52 million 960 thousand shares.

Statistics show that in the first quarter of 2011, Swiss banks still held 54 million 690 thousand shares in Baosteel, but in the second quarter and third quarter of 2011, Swiss banks disappeared from the top ten tradable shareholders of Baoshan Iron and Steel Co., and the two quarter was the most sharp decline in Baosteel last year, down 10.93% and 15.42% respectively.

Looking at Baosteel's list of the top ten tradable shareholders in the past 10 years and the track of share prices, it can be found that after the Swiss bank's order, the fourth quarter of 2003 was the most intense time for Baosteel to rise, with a cumulative increase of 69.84%.

At the end of 2003, the number of Swiss banks holding Baosteel shares was 87 million 510 thousand shares.

In 2004, however, there was no sign of Swiss bank. From the three quarter of 2004 to the end of the first quarter of 2006, the bank continued to increase its holdings from 23 million 910 thousand shares to 135 million shares when Baosteel shares were at a historic low.

After that, Swiss bank gradually reduced its share price.

In 2006, Baosteel's share price rose two times, and after the Swiss bank became fully profitable, it quit the list of the ten largest shareholders in the first quarter of 2007.

After that, though the share price continued to be crazy, the Swiss bank remained calm.

It was not until 2009 that the Swiss bank reappeared in the top ten list of circulating shareholders after two years.

Compared with the bull market, Baosteel's share price fell more than 3/4 by the end of the first quarter of 2009.

In the second half of 2009, Baosteel saw a two wave of sharp rise, of which the fourth quarter rose by 53.69%.

According to the SFC statistics, since 2002, China has approved 158 QFII qualifications of overseas institutions, of which 129 have been approved to invest $24 billion 550 million.

As of March 23rd, the total assets of the QFII account amounted to 265 billion 600 million yuan, of which stocks, bonds (Treasury bonds, corporate bonds, convertible bonds) and bank deposits accounted for 74.5%, 13.7% and 9.6% respectively, with a total value of 197 billion 900 million yuan.

Statistics show that when the QFII pilot was launched in 2002, the investment ceiling was only $4 billion.

In 2005, the total QFII quota was approved to increase from 6 billion US dollars to US $10 billion.

In 2007, according to the results of the second Sino US strategic economic dialogue, China increased the total QFII quota to $30 billion.

The increase of 50 billion US dollars is alarming.

From the Swiss bank's operation of Baoshan Iron and Steel Co., Ltd., the strategy of QFII investing in A shares is: focus on value investment, boldly increase in the market downturn and low valuation, even if investors are generally not optimistic about the industry; once the valuation is high, even if the market is still in full swing, it will resolutely reduce or even clear up.

Because of this, in the previous stock market ups and downs, QFII can successfully beat the bottom again and again.

QFII also attaches great importance to share dividends.

In the fourth quarter of last year, Baosteel, CITIC Securities, conch cement and China life share were the most generous QFII holdings.

For example, Baoshan Iron and Steel Co., Ltd. has received a total dividend of 2.67 yuan per share for 10 years from 2002 to the present. The dividend plan for the 2011 year is 10 yuan, which is 2 yuan, and the yield is more than 4%, which exceeds the one-year bank deposit.

In the fourth quarter of last year, CITIC Securities was increased by 65 million 690 thousand shares, and its share dividend amounted to 2.43 yuan in the last 5 years.

From the perspective of QFII's operation practice, it holds the largest number of blue chips with large assets, high growth, reasonable valuation and good market liquidity.

Compared with other investors (including institutional investors), QFII tends to hold for a long time, and the investment behavior that does not profit through frequent trading also plays an important role in promoting the smooth operation of the capital market.

According to statistics, from the beginning of 2007 to the end of June 2011, the weighted average value of turnover in all QFII years was 1.84, far below the market average level of 4.05.

The A share market rose nearly 10 years, while QFII entered the A share market for 10 years.

So, someone exclaimed, "QFII copy the bottom"; some people think this is the rescue of the market; someone appealed to hold cheap chips, raise the stock price and sell it to QFII..

QFII is not a fool, of course, will not wait for you to raise the stock price to buy again; QFII is not a charitable organization, the essence of capital determines its purpose is to profit.

QFII will also do whatever it takes to profit.

After buying stocks, the QFII will sing more or suggest buying, and then sell stocks, then they will sing empty, and then increase sharply when the market falls.

In 2007, at the time of the big bull market, the QFII had been questioned by the market when they sang empty and did many abnormal actions.

QFII investment A shares amazing

From this point of view, the continuous influx of QFII is a good thing for the A share market. It can improve the structure of investors, provide demonstrative effect for other investors, and change the "small and scattered" behavior of catching up and killing, thus playing a stabilizing role in the market.