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Original title: Institutional A-Share Investors Keep Increasing Their Stake
Our reporter Wu Xiaolu
In recent years, with the advance of capital market reforms, the structure of investors in A shares has undergone significant changes. Institutional investors’ participation and voice in A shares have gradually increased, and A shares have gradually entered the era of “institutionalization”.
“In the past two years, public funds, sunny private equity and asset management of securities firms have developed rapidly, and the proportion of investors buying funds is increasing rapidly. This is a very good turnaround. “. Recently, the chairman of China Securities Regulatory Commission, Yi Huiman, was at the China High-Level Development Forum, Said, when he spoke about the investor structure at the round table.
Market participants believe that in recent years, with the rapid development of public funds and foreign investment, the institutionalization of A-share investors has accelerated. However, compared to mature foreign markets, the overall share of the market value of Chinese institutional investors remains relatively low and there is much room for improvement in the future. Bank wealth management may become another important factor in structural changes for A Share Investors in the next five to ten years.
According to data from the China Securities Investment Fund Industry Association (hereinafter referred to as the China Foundation Association), as of January 15 this year, national professional institutions (public funds, investment funds social security, corporate annuities, insurance institutions, securities companies, etc.) hold the total market value of shares at 12.62 trillion yuan, an increase of 4.42 trillion yuan from the end of 2019, the Market value of A shares held was 18.44%, an increase of 2.02 percentage points from the end of 2019, which is also the highest level in recent years. The willingness of national professional institutions to own shares has increased significantly, demonstrating the recognition of the long-term investment value of A shares.
In addition, according to data from the China Securities Regulatory Commission, as of the end of 2020, foreign investment has maintained a net inflow for three consecutive years. Foreign investors’ A-share asset holdings exceeded 3 trillion yuan, and their holdings were accounted for nearly 5% of the market value. Together, at the end of 2020, domestic and foreign institutional investors accounted for approximately 23.44% of the shares.
Xia Fanjie, a strategist at Essence Securities, told the “Securities Daily” reporter that since the dramatic market volatility in 2015, the influx of foreign capital, the rapid growth of public funds and the change in investment philosophy have promoted the structural changes of A -shared investors. According to estimates, from 2015 to the end of 2020, the current market value held by various institutions will increase by approximately 12%. In terms of the scale of participation of various institutions, public funds represented the largest participation and the fastest increase in recent years (about 1/3 of institutional investors), followed by foreign funds and private equity funds .
According to data from the China Association of Foundations, at the end of January this year, the scale of public funds reached 20.59 trillion yuan, of which the size of equity funds was 2.07 trillion yuan, the scale of hybrid funds was 4.86 trillion yuan, and the total size of equity funds and hybrid funds was 6.93 trillion yuan, an increase of 117.42% compared to the end of 2019 and an increase of 104.19% compared to the same period last year.
Xia Fanjie said that as a whole, domestic institutional investors basically implement the concept of “value investing” and pursue the growth of returns and certainty; Operationally, the holding period is longer and the overall position is more stable. At the same time, affected by regulatory requirements and risk-return preferences, there are significant differences in style between institutional investors and individual investors; the increase in the proportion of institutional funds in the medium and long term will affect aesthetic preferences and market characteristics. From the market. The increase in the participation index of institutions will make the overall A-share market more stable, and the pattern of “slow bull” and “long bull” will gradually appear; In addition, the A-share market is also more structured, and the high-quality track and the company can outperform in the long run.
In an interview with a Securities Daily reporter, Li Minghao, senior researcher at the Wanbo New Economic Research Institute, said that national professional institutions prefer industries such as food and beverage, medical biology, electronics, electrical equipment and finance. Domestic professional institutions are an important part of the investor team in the A-share market. The participation rate of mature professional institutions continues to rise, and the investment philosophy of value investing continues to affect the A-share market, which promotes the healthy development of the market.
“National institutional holdings of Guanzhimei Stocks have declined after the 2008 financial crisis, but still accounted for up to 40% by the end of 2020.” Xia Fanjie believes that, with reference to mature capital markets, institutional and specialized investments are equity markets The only path to development, the virtuous resonance formed by the excellent performance of investments and subsequent purchases has caused the general trend institutionalization, and has made the institutional style continue in the market for a long time. Compared to mature foreign markets, institutional investors in my country still represent a relatively low overall share of the stock market, and their concentration in individual stocks is not significant, and there is much room for development in the future.
The China Merchants Securities Research Report believes that “from today’s point of view, wealth management subsidiaries remain relatively conservative in capital investment, with a capital asset allocation ratio of only 2.31%. , which is 2.44% lower than that of wealth management products across the market. However, bank wealth management under the new financial management regulations is possible to invest in stocks directly or indirectly, and is a general trend for banks to increase the allocation of capital investments in the future. “
