Yang Delong: After joining ETF

Zhongxin Jingwei, July 4th. On the 4th, there was a shock rebound in the Shanghai and Shenzhen cities, which opened low, especially the new energy sector continued to lead the two cities. Yang Delong, chief economist of Qianhai Open Source Fund, pointed out that, as a whole, the current A -share market has gradually entered the rising channel, and the market in the second half of the year officially kicked off. At the same time, he predicts that after the economic recovery of the A -share market in the second half of the year, and the epidemic control measures will gradually relax, the A -share market will further expand the space.

Yang Delong said that in terms of policies, on July 4th, the Hong Kong stock market and the A -share market ushered in a historic event. According to relevant arrangements, the ETF transactions under interconnection began today. According to this arrangement, 83 qualified ETFs in the north direction are included in the initial list, so that the Shanghai Stock Connect and Shenzhen Stock Connect will also cover stocks and ETFs at the same time to enrich the types of interconnected bids.

"According to statistics, the size of the ETF fund of these 83 A -share markets exceeds 600 billion yuan. After opening the interconnection, it will greatly attract overseas funds to enter the market, increase the scale of the ETF market, and bring incremental funds to the A -share market. "Yang Delong said that according to the experience of opening Shanghai -Hong Kong Tong and Shenzhen -Hong Kong Stock Connect, the amount of funds flowed in was enlarged year by year. The amount of funds at the beginning of flow is not large, but over time, more funds flow into the A -share market through an interconnection mechanism every year.

Yang Delong said that after joining ETF, interconnection will have more attractiveness to foreign investment, because ETFs are the investment targets favored by many institutional investors. Although the amount of funds that can be directly attracted this time is difficult to predict, it is expected to increase year by year. With the rise of the market, the inflow of funds will become increasing. In terms of south direction, the Hong Kong Stock Connect is incorporated into the four Hong Kong stocks ETFs, which further enriches the types of the south to Hong Kong Stock Connect. Since the opening of the Shanghai -Hong Kong Stock Connect at the end of 2014, the interconnection mechanism has become the main channel for foreign investment into the A -share market. At present, the market value of foreign investment in A shares has reached more than 20 trillion yuan, accounting for more than 3%of the total market value of A shares.

Yang Delong said that in the future, as ETFs are incorporated into interconnection and the attraction of Chinese assets, foreign capital will continue to flow into the A -share market. For foreign investment, the attraction of investment in the A -share market is derived from low valuation. In the past few years, the US stock market has risen sharply, and the valuation of U.S. stocks is at a high level, while A shares are at the bottom of history. On the other hand, compared with many overseas markets, A shares have certain characteristics, that is, the correlation between U.S. stocks is not strong, and even many times it is negative.

"Now 83 qualified ETFs are included in the interconnection, which undoubtedly further expands the degree of opening up of the A -share market. These 83 ETFs, including 53 Shanghai Stock Exchange and 30 Shenzhen Stock Exchange. From the time of listing, ETFs have a small number of listed ten market ten ten markets. For many years of ETF, there are also many ETFs that have been listed in less than a year. "Yang Delong pointed out that there are many types and industries covered by ETFs, and both ETFs such as carbon neutralization and new energy representing the new economy; The core indexes such as Deep 300 and GEM are wide -founded products for investment targets, which can better meet the needs of international investors.

In addition, Yang Delong also analyzed that from the global perspective, in recent times, US stocks have continued to fall due to the influence of the Fed's interest rate hikes. Last week, the three major US stock indexes fell, of which the Nasda Index fell more than 4%. In the first half of the year, the three major stock indexes of the US stocks fell hugely, and the S & P 500 index hit the largest first half of the year in the first half of the year. The main reason was that the Federal Reserve was retracted by the interest rate hikes adopted by the Fed. In the past two years, the Fed's large amount of water has spawned asset bubbles, which has pushed global inflation. This year's sudden Russia and Ukraine conflicts further pushed up the prices of crude oil, natural gas, and agricultural products, making the Fed have to raise interest rates, which increased the risk of decline in the US economy and a huge impact on the US stock market. (Zhongxin Jingwei APP)

- END -