Huitianfu, E Fund’s ETF becomes a stock reduction tool supervision must be 西安耍耍网 repaired
ETF holdings became part of the stock tool, regulators urgent need to remedy the situation of the Blue Whale Finance: Qi Zhong Pei Lirui and China Universal and easy to square up China fund industry is an important company, every move has a significant demonstration effect on the entire industry.
For a long time, a number of large companies have incorporated noticeable cultivation in the field of index funds.
Recently, the CSI 800ETF net worth performance of these two large companies set up on the same day on October 8th has seen unusual changes in the net worth performance, which has caused heated debate in the market.
Why does the ETF’s net value decrease when the index rises slightly?
On October 8, 2019, Huitianfu CSI 800 ETF (code: 515800) was established with a first fundraising scale of 66.
01 billion yuan, with a total of 17,336 effective subscriptions.
Among them, the company subscribed for 7003 with inherent funds.
470,000 yuan, but the amount subscribed by the company’s employees is zero.
The fund was issued from July 15 to September 25, 2019, and took more than two months to achieve such a scale, which made many peers envy.
However, the plot quickly changed quickly.
On October 11 and 18, the unit’s net value announced by the fund was 0.
9724 yuan, 0.
9,534 yuan, which means that in just 10 days from October 8 to 18, the fund’s net worth has fallen by 4.
During the same period, the CSI 800 Index did not decrease, but slightly increased by 29 alternatives, with an increase of 0.
Look at the performance of E Fund CSI 800ETF.
The fundraising period of E Fund CSI 800ETF is from September 16th to 25th, with only 10 days. It is a competitive product that is opposite to Huitianfu.
The fund’s first fundraising scale was 8.
8.8 billion yuan, with a total effective subscription of 5,658 households.
As of October 18, the unit net value of E Fund CSI 800 ETF was 0.
9406 yuan, down 5.
94%, a decline even more than the Huitianfu ETF.
On October 22, the fund issued a listing announcement, which was listed on October 25. It can be said that it was issued later, and it took the lead of Huitianfu. Its awareness of offense and defense is very strong.
Shareholders reduced their holdings, and the interests of ordinary holders were damaged. Why did the CSI 800 Index not decline, but Huitianfu CSI 800 ETF apparently replaced?
This phenomenon has puzzled and outraged some of the fund’s holders.
The reason is mainly because 66 of the fund is being subscribed.
In the $ 01 billion fund, there is a counter-proportion stock exchange, which means that some listed company shareholders do not use cash, but use shares of their sub-shares to exchange for ETF shares, the purpose of which is to reduce their holdings.
Stock exchange for ETFs, that is, during the ETF issuance period, investors can exchange single or multiple odd shares for ETF shares. Under the new rules for reducing holdings in 2017, the exchange of ETFs has become a common method for shareholders of listed companies to reduce their holdings in disguise.
For shareholders of listed companies, using exchange ETFs to reduce their holdings in disguise can even save a large amount of stamp tax and dividend income, and only need to pay the replacement exchange rate and brokerage commissions; and there is no need to repeat the progress of reducing holdings.For direct reduction, the impact on the market is smaller.
For fund companies, accepting exchange purchases by listed company shareholders means that the newly issued ETF can predict a considerable initial fundraising scale, and it seems that there is no reason to refuse either from the perspective of management fee income or scale ranking.
But it is different for ordinary investors.
For stock exchanges that meet the density of index components, it ‘s okay to say that if there is a large proportion or even over-standard stock exchanges, it means that the proportion of redemption of constituent stocks to the fund’s net value is much higher than the weight of the relevant constituent stocks in the index in order to complete the position opening as soon as possibleOn the market, ETFs need to adjust their positions substantially during the construction period, sell excess exchanges for decay, and buy other decays.
In this case, not only will the transaction adjustments increase the transaction cost, but also, once the relevant exchange chip is penetrated and narrowed, or it is difficult to adjust the adjustments, the fund’s net value will deviate from the tracking index, or even occur.The amplitude decreases.
”Redemption is okay, but excess redemption does not affect fund performance.
“For the two newly issued CSI 800 ETFs, there was a decline in net worth due to excessive stock exchanges, investors said.
“There is nothing wrong with stock exchange ETFs, but what fund companies and regulators are still lacking is to limit the exchange ratio and refuse to accept or return exchange shares that exceed the index weight to protect the interests of ordinary investors.
The development of the industry must be on the right track, and the supervisors need to make up for it. It needs to be pointed out that, as trustees, fund companies have accepted a large number of listed companies’ shareholders in exchange for shares of ETFs, which is much higher than the normal proportion of index constituents tracked by the fund, making ETFsReduced into a tool for shareholders of listed companies to reduce their shareholdings, it is a clear role positioning confusion. This kind of behavior of fund companies, while turning itself from a fund trustee to an investment bank that sells stocks, has helped the shareholders of listed companies while standing on the opposite side of most ordinary fund holders.
Although the chaos of the role positioning of fund companies can obtain short-term commercial benefits, it will seriously damage the credit and brand of the relevant fund companies.
If the fundamental behavior gradually spreads and is not effectively stopped, the trustworthy foundation of trusteeship for the survival and development of the entire fund industry will be threatened.
At present, the competition among major fund companies in the ETF field tends to be fierce. In this context, it is necessary to take the right path, and not to go the wrong way.
When a fund company accepts the use of stocks by shareholders of listed companies to exchange for ETFs, it is necessary to grasp the degree of goodness, in order not to prejudice the interests of other investors who purchase with cash.
The problems that the fund industry has already exposed in the ETF field also need to attract the attention of the securities regulators.
Relevant regulatory agencies have the responsibility to protect the legitimate rights and interests of ordinary investors and the development of industry norms. It is time to help the shareholders of listed companies through ETFs to reduce their holdings.