What Should Chinese Investors Withdraw From The Capital Market?

Last week, in the autumn auction of Hongkong, some important works of art were photographed by the buyers at a higher level, but other works were sold. The total turnover of Sotheby's Hongkong auction is US $342 million, which is 16% higher than the estimate before the auction. At the Poly auction in Hongkong, a mainland entrepreneur in Hongkong made a 10 metre long Jinling figure at a price of 6 million 700 thousand dollars, setting a record of ancient Chinese paintings at Hongkong auctions.

Zhao Xu, executive director of poly, said that despite the economic downturn, the price of top art works has not declined. The total turnover of Baoli Hongkong autumn auction is HK $900 million, still less than that of HK $1 billion in spring auction, but it increased by 10% compared with last autumn auction.

After the stock market plummeted, Chinese investors withdrew funds to invest in bonds, insurance products, big cities real estate and artworks.

Individual investors withdraw funds from the stock market and go to bond funds. Good buy fund net official website data show that in September, fixed income products sales increased 50% compared with August, while the share fund sales fell 50% during the same period. Many equity funds also changed their strategy and began investing in bonds.

Data from the central government debt clearing and Settlement Company Limited also showed that commercial banks bought bonds worth 1 trillion and 600 billion yuan from June to August, representing 3 times the total size of the first five months of this year. Increased demand and the central bank's interest rate cut have pushed up the price of high Rating firm debt and lowered the yield to its lowest level since 2010.

Wang Qing, chief executive of Chongyang investment company in Shanghai, said that the market's risk aversion increased and investors pursued high quality assets, bonds and first tier urban real estate.

"When the stock market is hot, the income of a day may be equivalent to that of the investment bond, so the bonds are not popular at that time." Wang Ming, a partner of Shanghai Yao's asset management center, told the Wall Street journal that "now the risk appetite of investors has dropped."

Since the stock market slumped, the daily net capital inflow of Shanghai life has exceeded 60 million yuan, and its total assets have risen from 4 billion yuan at the end of May to 9 billion yuan. Generally speaking, investors tend to buy insurance investment in one policy, hoping that the policy can provide a stable return.

Fund managers are also taking Assets From stock to bond and real estate. The shares of Shanghai life insurance account for only 10% of the total assets, which is half of the stock market crash. On the one hand, the expansion of asset base is another reason. Stock position 。 Today, 30% of Shanghai life's assets are held in real estate related project rights and funds and the rest are cash.

The real estate industry is favored by Chinese investors. In the second tier cities, the real estate market improved in September, when housing prices increased by 0.3% over August, up 1.3% over the same period last year. Investors will buy in a second tier city, bet on local real estate more likely to maintain value, of which Shenzhen ranks first in the 26.4% year-on-year growth rate, followed by Shanghai, an increase of 6.5% over the same period last year.

In addition to bonds, insurance products and the real estate market, Investor It will also invest funds from the stock market to the art market.