New Equity Funds Close Early, Accelerate Investment Pace

With the recent rebound in the A-share market, newly launched equity funds have seen a surge in early fundraising closures, with several initiator funds closing their fundraising in just one day. To seize market opportunities, many new funds have also accelerated their pace of establishing positions.

Industry insiders believe that with the implementation of monetary policy taking effect and fiscal policy continuing to exert effort, there is still an expectation of marginal improvement in the domestic fundamentals, and short-term fluctuations do not change the long-term upward trend of A-shares.

Many newly launched funds have announced early fundraising closures, with initiator funds being the main ones.

As market sentiment warms up, several newly launched equity funds have recently announced early fundraising closures to better seize investment opportunities.

On October 10th, Penghua Fund announced that the fundraising for Penghua CSI Photovoltaic Industry ETF Initiator Connected Fund was closed early, with the fundraising deadline moved up from November 15th to November 1st.

On October 9th, the fundraising deadline for CICC Growth Pioneer Mixed Initiator Fund was moved up from November 29th to October 8th, nearly two months ahead of the original date. One day before, Tianhong Fund announced that the fundraising deadline for Tianhong Beijing Stock Exchange 50 Component Index Initiator Fund was moved up from December 12th to October 9th. The fund started fundraising on September 13th, and this adjustment moved the fundraising deadline up by more than two months from the original date.

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On September 30th, Guotai Junan Asset Management announced that the fundraising deadline for Guotai Junan CSI Hong Kong Technology Index Initiator (QDII) was moved up from October 11th to September 30th, with the actual fundraising period being only one day. In addition, Huitianfu Dividend Smart Selection Mixed Initiator also moved the fundraising closure date from November 15th to September 25th.

The equity funds that closed their fundraising early were mostly initiator funds. In fact, looking at the newly established funds, many initiator funds had a fundraising period of only one day.

Furthermore, the upcoming sales of Anxin Medical Innovation Stock Initiator, Anxin Cycle Selection Stock Initiator, and Great Wall Pharmaceutical Industry Selection Initiator all have a fundraising period of one day.

New funds are quickly establishing positions.Fund net value changes indicate that many new products have quickly established positions after their inception. For instance, the Huanan China Securities Information Technology Application Innovation Industry Index Fund, established on October 10th, saw a net value decline of 1.25% as of October 11th, suggesting that the fund may have initially established a certain position. Since its establishment on September 27th, the net value change of the Wanjia SSE Science and Technology Innovation Board 100 Index Enhanced has also been quite noticeable, with a net value decline of 4.49% as of October 11th. The China Europe China Securities Hong Kong Stock Connect Innovative Medicine Index has seen a cumulative net value increase of 5.45% since September 26th, with net value changes on September 30th, October 8th, and October 9th being 4.4%, 3.2%, and -2.96%, respectively, while the performance of the Hong Kong Stock Connect Innovative Medicine Index during the same period was 5.61%, 3.01%, and -3.02%.

On the evening of October 9th, the first batch of China Securities A500 ETFs released their listing transaction announcements, showing that some ETF stock positions have exceeded 90%. For example, as of October 8th, the stock market value held by Harvest China Securities A500 ETF accounted for 85.37% of the fund's total assets. Those with stock market value exceeding 90% of the fund's total assets include Jing Shun Great Wall China Securities A500 ETF, Morgan China Securities A500 ETF, and China Merchants China Securities A500 ETF, reaching 93.77%, 92.64%, and 90.2%, respectively, essentially completing their establishment of positions.

Some China Securities A500 ETFs maintain a neutral position level, such as Guotai China Securities A500 ETF, Nanfang China Securities A500 ETF, and Huatai Bo Rui China Securities A500 ETF, with the stock market value held accounting for 65.96%, 53.02%, and 52.84% of the fund's total assets, respectively.

Fuguo Fund stated that the market is gradually shifting from a rapid universal rise pattern to a volatile structural market trend. Looking forward, the financial special session held by the State Council on Saturday conveyed the government's proactive attitude towards fiscal policy. Along with the implementation and effectiveness of monetary policy and the continued effort of fiscal policy, there is still an expectation for marginal improvement in the domestic fundamentals, and short-term fluctuations do not change the long-term upward trend of A-shares.

Boshi Fund believes that the emergence of the policy bottom implies that the valuation bottom may appear, leading to the emergence of the market bottom. However, the bottom of the fundamentals still needs to wait for the effects of the policy, and the key in this regard is to see the subsequent fiscal efforts.