QFII quota increased to 300 billion U.S. dollars foreign investors can boost confidence in A-share investors
Foreign countries can promote the latest progress in the recovery of investor confidence in A-shares. A-shares continue to run at a low level and the trading volume is very slump. However, in the context of overall lacklusterness and investors’ pessimism, there have been too many frequent purchases and supervision has occurred.The layer intentionally increased the quota response.
On January 14, the website of the State Administration of Foreign Exchange announced that the total quota of qualified foreign institutional investors (QFII) increased from US $ 150 billion to US $ 300 billion with the approval of the State Council.Trillion.
The broadening of the quota is due to foreign favor for A shares.
In June last year, the A-share split MSCI Emerging Markets Index officially came into effect. This year, it is expected to increase the decomposition factor from 5% to 20%. The British FTSE Russell Index and the US S & P Dow Jones 苏州夜网论坛 Series Index have also announced the replacement of A-shares.
From the perspective of data, there are agency statistics.In 2018, the net inflow of foreign funds to China’s stock-type funds reached 35 billion U.S. dollars, setting a new high for restructuring, ranking first in major emerging market countries, almost double the amount of capital inflows into stock funds in the Indian market at the same time.the above.
Preliminary statistics also show that among the domestic RMB financial assets held by foreign institutions and individuals in the last 9 months, the holding of stock assets reached 1.
28 trillion US dollars, an increase of about 25% each year, becoming the second largest allocation of foreign assets after bonds.
At the same time, Hong Kong’s funds are densely travelling northward. According to wind statistics,武汉夜生活网 the net purchase of A-shares last year totaled US $ 294.2 billion, an increase of nearly 50% each year. Among them, the Shanghai Stock Connect has become the main force of net purchases, almost doubling; only a few since this year.During the trading day, Kitakami Capital continued to make a net purchase of nearly 1.4 billion yuan.
However, as the main participants of A-shares, domestic investors are still very cautious and even have resentment during the continued downturn in the capital market. Although the regulators continue to shout and favorable policies continue to be issued, the index has not significantly improved, and the transaction volume has also hit a numberNew low for the past year.
Statistics also show that in the first three quarters of last year, the overall public equity fund holdings replaced 1.
71 trillion, representing a decrease in the total value of the fund’s assets.
Therefore, Fang Xinghai, vice chairman of the China Securities Regulatory Commission, bluntly stated on the China Capital Market Forum on the 12th: there was a strange phenomenon in the A shares in 2018. Domestic investors did not dare to buy stocks, and foreign investors desperately bought Chinese stocks.
Indeed, from the perspective of the expectations most concerned by foreign investors, A shares are currently at a historically low level, the investment period is three to five years or even once, and they are optimistic about the Chinese economy in the long run. A shares must be a good choice.
However, there are many factors that affect the stock market, including objective factors such as economic fundamentals and funding conditions, as well as subjective factors such as investor confidence and expectations.
The current downturn in A-shares has a lot to do with investor confidence and expectations.
In order to restore the confidence and expectations of A-share investors, firm marketization, the rule of law development is essential, and foreign investment dating will play an important role.
The aim is that A shares need to respond to the expansion of opening up through reforms.
For example, on the issue of arbitrary suspension of A-share stocks by international investors, the Shanghai and Shenzhen exchanges are under “ruthless” governance.
At the end of last year, the “Guidelines for Suspension and Resumption Business of Listed Companies Planning Major Issues” were both issued. From the aspects of reducing suspensions, reducing the suspension period, strengthening information disclosure, and improving supervision of suspension and resumption, the key norms for suspension and resumption business of listed companies are the strictest.New rules for suspension of trading.
Therefore, the deepening of the involvement of foreign and foreign institutions will help improve the characteristics of A-share retail investors and train mid- and long-term investors.
Because the foreign exchange rate of entering A shares is low, the holding time is long and the value investment orientation, when the profitability is significantly better after time inspection, it may affect the current operation of A shares investors.
At present, statistics show that the share of foreign exchange formed by Beijing Capital and QFII in A shares last year was almost the same as that of social security funds, second only to active public offering funds, and became the second largest institution of A shares.
It should be said that at present, A-shares are still prominent in the characteristics of retail investors, and “the bottom is afraid to buy,” and it needs to be repaired with confidence and expected stability.
At this time, by expanding the opening of the capital market and dating foreign countries, it is not only conducive to changing the current situation of sluggish transactions, but also conducive to the long-term stable development and maturity of the capital market.