The overall performance of stock funds this year has been poor, but the total share of funds has shown a slow growth trend, and there are significant signs of institutional increases.
Multiple stock funds after holidays
Obtain funds to increase positions
In the afternoon of September 20, near the end of trading, the A-share index rose significantly, with the Shanghai Composite Index closing up 0.03% and the CSI 300 Index up 0.16%. Judging from the transaction situation, during the late call auction stage, the overall volume of A-shares increased significantly, with the Shanghai Composite Index’s transaction volume reaching 8.073 billion yuan within 3 minutes, and the Shenzhen Component Index’s transaction volume within 3 minutes reaching 6.732 billion yuan.
ETFs related to broad market indexes also experienced explosive growth. According to statistics from Securities Times·Dabao, on September 20, the transactions of Huatai-Berry CSI 300 ETF and E Fund CSI 300 ETF exceeded 7.5 billion yuan and 5.7 billion yuan respectively. Harvest CSI 300 (160706 ) ETF and ChinaAMC CSI 300 ETF had a turnover of 3.801 billion yuan and 3.723 billion yuan respectively; the total turnover of the above four ETF funds exceeded 20 billion yuan, and the turnover reached a new high in the past two months.
Industry analysts said that big funds are more focused on injecting liquidity into the market with the help of broad-based indexes, which plays a stronger supporting role for the index. In the future, we need to continue to pay attention to the clearing effect of some congested industries on the supply side, as well as the catalysis produced by the policy of expanding domestic demand on the demand side. The current valuation level of A-shares has reached a relatively low value in history, and asset prices are relatively cheap. Some minor marginal improvements may also evolve into upward momentum.
In just three trading days after the Mid-Autumn Festival, stock funds continued to receive net inflows of funds. According to Wind data, from September 18 to September 20, the net inflow of equity funds exceeded 23 billion yuan. The net inflows of six funds exceeded 1 billion yuan, namely Huatai-Berry CSI 300 ETF, E Fund CSI 300 ETF, ChinaAMC CSI 300 ETF, E Fund GEM ETF, China Southern CSI 1000 ETF, and GF CSI 1000 ETF.
These six funds are all targets of heavy holdings by institutions. At the end of the second quarter of this year, the proportion of institutions holding five funds including ChinaAMC CSI 300 ETF, E Fund CSI 300 ETF, GF CSI 1000 ETF, Southern China Securities 1000 ETF, and Huatai-Berry CSI 300 ETF exceeded 80%. In addition, the institutional holding ratio of GEM ETF reached 65.18%; the institutional holding ratio of ChinaAMC CSI 300 ETF was as high as 97.41%. At the end of the second quarter, Central Huijin, known as the "national team", held more than 75% of the fund. Compared with the end of 2023, the holding ratio increased by more than 1.8 times.
Institutional equity funds
The right to speak has been significantly improved
The trend of A-shares will be relatively sluggish in 2024, the overall performance of stock funds is poor, and the net values of many funds have shrunk, but the total fund share has shown a slow growth trend.
According to statistics from Databao, as of September 22, the shares of stock funds reached 2.96 trillion, an increase of more than 10% from the end of 2023. This may mean that despite the overall poor performance of the market, investors maintain a relatively optimistic attitude towards the future equity market and believe that the investment value will still exist in the long run.
Behind the substantial growth in fund shares, it is not unrelated to the continued increase in positions by institutional investors. According to the semi-annual report data disclosed by the fund, as of the end of the second quarter, the net value of equity funds held by institutions was 1.58 trillion yuan, reaching a record high, an increase of more than 500 billion yuan compared with the same period last year.
At the same time, the voice of institutions in stock funds has increased significantly. At the end of the second quarter, institutional holdings accounted for 51.03%, exceeding 50% for the first time since 2007. On the contrary, at the end of the second quarter, the net value of individual investors' positions shrank by more than 100 billion yuan compared with the same period last year, and the proportion of their positions in stock funds dropped to 48.97%, a new low since 2007.
More than 50 institutions have heavy positions
Stock fund share growth
Which stock funds are most favored by institutions? According to statistics from Databao, at the end of the second quarter, institutions held 17 stock funds with a net worth of over 10 billion yuan.
The net institutional holdings of 4 funds related to the CSI 300 Index rank in the top 4, namely Huatai-Berry CSI 300 ETF, E Fund CSI 300 ETF, Harvest CSI 300 ETF, and ChinaAMC CSI 300 ETF. The highest net value of institutional holdings is the Huatai-Berry CSI 300 ETF, reaching 170.43 billion yuan. Central Huijin holds nearly 60% of the fund.
Institutional holdings with higher net worth include ChinaAMC SSE 50 (510050) ETF, China Southern CSI 500 ETF, E Fund GEM ETF, E Fund SSE Science and Technology Innovation Board 50 ETF, and Southern China Securities 1000 ETF.
How have these institutionally-heavy stock funds performed recently? According to statistics from Databao, at the end of the second quarter, there were 158 stock funds held by institutions with a net worth of more than 1 billion yuan and a holding ratio of more than 50%.
The overall return rate of these funds since September is -3.09%, and 6 of them have a return rate of more than 3%, namely E Fund CSI Hong Kong Stock Connect Medical and Health Comprehensive ETF, Southern CSI All-Inclusive Real Estate ETF, Invesco Great Wall CSI Hong Kong Stock Connect Technology ETF, Harvest Hong Kong Stock Connect New Economy C, ICBC China Securities Hong Kong Stock Connect Technology ETF, and Harvest Frontier Technology A.
Compared with the end of August, more than 50 of the above-mentioned 158 funds have a growth rate. The shares of five funds increased by more than 10%, namely Cathay CSI All Home Appliances ETF, Southern CSI 300 ETF, Wells Fargo Shanghai Composite Index ETF, Invesco Great Wall CSI Hong Kong Stock Connect Technology ETF, and Cathay Shanghai Composite ETF.
The share of Cathay CSI All-Index Home Appliances ETF increased by 20.27%, ranking first. The fund's top holding at the end of the second quarter was Midea Group (000333), followed by Gree Electric (000651), Haier Smart Home (600690), Sanhua Intelligent Control (002050), etc.
