Public Offering Investment Selection Layer Path To Further Open Trillions Of Stock Funds Waiting To Be Put On Record

Public funds into the new third board selection layer more smoothly.

Recently, 21st century economic reporter learned from institutions that the future stock of public funds can directly invest in the stocks of selected companies by modifying the fund contract and expanding the scope of investment. At the same time, select stocks are also recognized as "the equivalent of listed stocks.".

In this regard, institutional sources said that, in principle, on the premise that the fund manager determines that the stock investment of the selected layer of the new third board conforms to the investment objectives, investment strategies, investment scope and risk return characteristics stipulated in the fund contract, "it is not considered as a major adjustment to modify the fund contract and expand the investment scope to the fine selection layer. It is enough to do a good job in the filing procedures for the modification of the fund contract, without holding any holding There is a meeting ".

"It's hard to say that it will work in the short term, but the overall attitude is more open." According to the new third board practitioners of Beijing securities companies, the existing stock public offering fund products that invest in A-shares in the future can directly invest in selected stocks in a very convenient way.

The selective level of public offering is gradually open

As a matter of fact, the release of the investment selection layer of the stock mutual fund products is not accidental. Since the beginning of the year, the regulatory layer has been promoting the smooth channel of public fund investment in the new third board, especially the selection layer.

On April 17, 2020, China Securities Regulatory Commission (CSRC) issued the guidelines for public offering of securities investment funds to invest in stocks listed in the national small and medium-sized enterprise stock transfer system (hereinafter referred to as the guidelines), which specifies that stock funds and hybrid funds can invest in selected stocks. In June, six publicly raised funds that can invest in the selected tier of the new third board were approved.

In July this year, when the first batch of 32 selected stocks were listed for trading, the regulatory authorities also quietly lifted the limit that the proportion of public funds to invest in selected stocks should not exceed 20%. In addition, fund companies can also set up new third board public offering products according to their own risk management ability and risk return characteristics of selected stocks, and reasonably set the risk rating of the products, instead of one size fits all assessment as the highest risk level of R5.

"After the system design has made it clear that public funds can invest in the selection layer, and the proportion limit has been relaxed, and the risk level has been reduced, the regulatory authorities have started to solve the problem of how to invest in the selection layer." The above-mentioned three board securities practitioners said.

As for the news that the investment selection layer of stock mutual fund only needs to be filed, some public fund managers in the northern region explained that it means that the public funds with stock investment in a shares in the future "only need to modify their own fund contract, increase the selection layer in the investment scope, and then submit it to the CSRC for filing." the process is greatly simplified, and there is no need to hold fund holdings separately Voting in general meeting ".

It is worth mentioning that the supervision also identified the selected stocks as "stocks equivalent to listing and trading", and said that the selected stocks of the new third board were the same as those of other listed stocks in terms of trading place and trading mechanism. In the view of industry insiders, this also determines the rationality of only filing the investment selection layer of stock mutual fund from the root.

Liu Jing, research director of Shenwan Hongyuan's new third board, said that according to the contents of the "guidelines" released during the year, public offering investment in selected stocks needs to modify the fund contract. Since the new third board is not an exchange, and the companies listed on the selective layer are not listed companies, the market generally understands that the modification of contract investment selection layer is a major contract modification, which needs to be approved by the general meeting of the holders, which is in fact There are very big difficulties in operation, and there will be almost no stock public offering into the market selection layer.

In Liu Jing's view, after the CSRC has made clear that the selected stocks are equivalent to the listed stocks, the investment selection layer of mutual funds is not considered as a major modification of the contract and does not need to be approved by the general meeting of the holders. This will greatly facilitate the listing of the existing public raised funds in the selective layer.

Marginal incremental capital drives the market to be expected

According to the statistics of Anxin securities, at present, the total net value of the common stock fund, partial stock mixed fund, balanced mixed fund and flexible allocation fund that can be invested in the selected layer is 3.76 trillion yuan, accounting for 20.86% of the total public offering fund.

At present, the total market value of the selected layer market is only 75 billion yuan, and the circulation market value is only 26 billion yuan. Zhu Haibin, chief analyst of Anxin securities's new third board, said that in the long run, if there is no need to hold a shareholders' meeting for the investment selection layer of the existing public offering fund, or it can drive the stock public offering fund to enter the market, according to the proportion that the investment proportion of the existing approved investment selective layer of the public offering fund does not exceed 10%, the long-term allocation of the selected layer of the public offering fund may bring significant incremental funds to the new third board market.

However, no matter in consideration of market sentiment or the limitation of liquidity of the selection layer, most people in the industry believe that the willingness of mutual funds to invest in the select layer in the short term is not strong.

"The downturn of the new third board market in history, together with the partial breaking of the first day of listing of the first batch of selected enterprises, make the public funds' investment in the selective layer relatively cautious." The mutual fund manager said.

From the market data point of view, at present, a large number of selected layer listed enterprises daily turnover less than one million. Liu Jing pointed out that due to the high liquidity requirements of public offering products and the uneconomical decision to invest in small market value stocks by the business model of charging management fees according to the scale, public funds may not become the main institutional capital of the selected layer.

"But at present, the daily trading volume of the selection layer has continuously dropped below 100 million, and 18 of the 32 companies have a circulating market value of less than 500 million, and any marginal incremental capital will play a positive role in the market," Liu Jing said. The policy of public offering to the selection layer was relaxed, which also reflected the regulators' concern about the Liquidity Dilemma after the large-scale breaking of the first batch of new shares of the selection layer The market is expected to get rid of the negative feedback of poor earning effect and liquidity.

"With the expectation of making money, the selection layer can gradually attract public funds to gradually enter the market. With the continuous help of public funds, the profit-making effect of the selection layer will continue to enlarge, and more public fund institutions and funds will be attracted to actively enter the market, forming a virtuous circle." Zhou Yunnan, founder of Beijing Nanshan investment, said.

?