On June 25, the A-share Shanghai Composite Index entered a 3,000-point defense battle, and "mysterious funds" entered the market to support the bottom, and many CSI 300 ETFs and SSE 50 ETFs traded in large volumes. Judging from the past market, the volume of index funds such as SSE 50 ETF and CSI 300 ETF is often a sign of the entry of the "national team".
Chart: CSI 300 ETF has increased significantly at two points in time; Source: Oriental Fortune
In the market crash before the Spring Festival this year, a similar situation occurred several times. Later, it was confirmed through public data that there were "national team" funds entering the field. The annual reports of funds such as ChinaAMC CSI 300 ETF and Harvest CSI 300 ETF disclose that many entities of the "national team", such as Central Huijin Investment Co., Ltd., now hold broad-based index ETFs.
Chart: SSE 50 ETF has significantly increased at two time points; Source: Oriental Fortune
ETFs are favored by institutions because of their advantages such as low transaction fees, good liquidity, high transparency, and convenient trading. Not only the national team, but also private equity institutions are actively subscribing to ETFs and completing the track layout through ETFs. Among the top 10 holders of new ETF funds during the year, a number of private equity institutions appeared, and there were many private placements of tens of billions.
Tens of billions of private equity ETF shares over 100 million!
According to public data statistics, as of June 24, a total of 84 private placements have purchased 61 newly listed ETFs this year, holding a total of 1.611 billion shares.
A total of 8 private placements with assets under management of more than 10 billion yuan have purchased 419 million shares of newly listed ETFs during the year this year. In addition, there are 7 private placements with a scale of 50-10 billion yuan to purchase 216 million shares of ETFs listed during the year.
Four private placements, including Xuanyuan Investment, purchased more than 100 million ETFs. Among them, Xuanyuan Investment was the most active in purchasing new ETFs during the year, with 180 million shares of listed ETFs purchased this year, followed by 125 million shares purchased by Hengde Capital, and 114 million shares purchased by Shanghai Hexi Private Placement.
Specifically, the ETF most subscribed by Xuanyuan Investment is the "E Fund CSI Auto Parts Theme ETF", and its two products both purchased 35 million shares of the ETF, accounting for 34.54% of the total share. The ETF mainly focuses on listed companies in the fields of automotive system components, automotive interior and exterior decoration, automotive electronics, and tires.
There are not a few private placements like Xuanyuan Investment that buy more than 10 million shares of ETFs. According to the statistics of the private placement network, among the 84 private placements that purchased shares of ETFs listed during the year, 38 private placements purchased more than 10 million shares. Among them, 16 private equity purchase shares are between 10 million and 20 million shares, 14 private equity purchase shares are between 20 million and 50 million shares, and 8 private equity purchase shares are not less than 50 million shares.
In addition, quantitative private placements are more enthusiastic about buying ETFs than subjective private placements. According to the statistics of the private placement network, a total of 20 quantitative private placements have purchased 503 million shares of ETFs listed during the year this year, and 36 subjective private placements have purchased ETFs listed during the year, with a total share of 448 million shares.
Private placement of ETFs, four types of tracks are favored
According to the statistics of the private placement network, the head private placements of more than 5 billion prefer broad-based index ETFs, such as A50, Science and Technology Innovation Board, ChiNext and other indexes; In terms of thematic ETFs, there are mainly pharmaceutical, technology, automobile and other tracks.
For example, tens of billions of private equity investment companies, whose products have been stacked and laid out in the science and technology biomedical ETF; Xuanyuan Investment's products are deployed in automobiles and semiconductor index ETFs. Among the quasi-10 billion private placements of 50-10 billion yuan, the products of Shanghai Hexi Private Equity have laid out the information and computer industries through ETFs.
In addition, many private placements have deployed overseas markets through cross-border ETFs. The products of Shanghai Hexi Private Equity, Yingshui Investment and Meishan Bonded Port Area Lingding Investment have deployed the Dow Jones Industrial Average and S&P Biotechnology industry through ETFs.
The largest number of cross-border ETFs bought was a quantitative private equity Hengtai Rong'an, whose product "Hengtai Rong'an Taishan No. 10 Private Securities Investment Fund" purchased more than 80 million shares of "Harvest Hang Seng Healthcare ETF". The ETF mainly tracks the Hang Seng Healthcare Index and is home to companies listed in Hong Kong that are mainly engaged in healthcare business.
Some tens of billions of private equity love to use ETFs to deploy overseas
The above data only counts the newly established ETFs during the year, and in the ETF annual report released at the beginning of the year, you can also get a glimpse of which ETFs were bought by private placements.
According to the statistics of ETF annual reports, the five products of 10 billion private Oriental Harbor have appeared in the list of the top ten holders of U.S. stock ETFs issued by 5 different public offering companies. Among them, the "Oriental Harbor Marathon No. 28 Private Securities Investment Fund" holds 3.4191 million shares of the "Cathay S&P 500 (QDII-ETF)" fund, accounting for 2.27%.
In 2024, when U.S. stocks continue to hit record highs, the net value of many Nasdaq index ETFs also continues to hit record highs. Tens of billions of private equity Oriental Harbor is optimistic about U.S. stocks, especially the global leader AI Nvidia, which has benefited a lot, and the net value of a number of products managed by the company's helmsman and fund manager Dan Bin has reached a record high.
Another 10 billion private equity company holds 355 million shares of "ChinaAMC Hang Seng Technology ETF" through its "Jinglin Jingpeng Preferred Private Equity Fund". In addition, Greenwoods' trust products hold two other QDII-ETFs in a large manner.
It is worth mentioning that the foreign private equity Bridgewater Fund firmly holds a number of gold ETFs. As of the end of 2023, Bridgewater's three products held a total of 41,976,300 shares of E Fund Gold ETF, unchanged from the third quarter of last year. At the same time, Bridgewater's products also appeared in the top 10 holders of several other gold-backed ETFs.
Not only that, the "national team" also uses ETFs to lay out listed companies of central state-owned enterprises.
Specifically, Central Huijin Investment Co., Ltd. holds 40.130 billion shares of broad-based index ETFs. The CSI 300 Index ETF holds the largest share, followed by the SSE 180 ETF and the SSE 180 Financial ETF.
The "national team" private equity fund, the "Guoxin Central Enterprises New Development Pattern Private Securities Investment Fund", holds 1.969 billion fund shares, mainly holding a number of central enterprise ETFs. It is worth noting that the private equity fund also holds 34,473,500 fund shares of "Huabao S&P Oil & Gas Upstream Stocks (QDII-LOF) RMB A".
Private equity ETFs are mainly based on market layout and investment strategy
Why do private equity firms love to deploy assets through ETFs? The main consideration is that ETFs can continuously optimize their portfolios and find new market opportunities. Through some industry-themed ETFs, they play a role in portfolio management.
On the other hand, there is the demand for private equity investment strategies. For example, private equity institutions with subjective strategies tend to allocate industry ETFs and broad-based ETFs, quantitative private placements are more likely to carry out ETF arbitrage by capturing price differences, and bond private placements are supplemented by allocating a small number of equity ETFs as bonds to diversify risks and increase product returns.
In addition, in order to meet the global allocation needs of investors, private equity can allocate global assets through cross-border ETFs to achieve strategic diversification and cross-market risk diversification.
At present, cross-border ETFs have gradually become a popular tool for investors to participate in global asset allocation, which can solve problems such as poor liquidity and avoid the risks associated with investing in individual stocks.
For example, when participating in the Hong Kong market, due to the poor liquidity of some Hong Kong stocks, there is a certain risk in investing directly in individual stocks with a huge amount of funds, and indirect investment through ETFs can solve problems such as poor liquidity.
Risk Disclosure: Investment is risky, the past performance of the fund involved in this information is not indicative of its future performance, and the performance of other funds managed by the fund manager does not constitute a guarantee of the performance of the fund, and our company does not promise or predict the future return of the product in any way, expressly, implicitly or otherwise. Investors should pay careful attention to various risks, carefully read the fund contract, fund product key facts statement and other sales documents, fully understand the risk-return characteristics of the product, and make investment decisions according to their own circumstances, and be responsible for their own profits and losses in investment decisions.