My Fintech Empire

As the end of the year draws to a close, another invisible war has begun in the foreign exchange market. Tian Jiayi brought Fang Hong’s decision-making to the trading team, and has now begun to launch a “pumping” plan, which is to continue but moderately buy. into the offshore market.

This time Fang Hong has no intention of going to the front line to trade in person. Although this capital duel in the foreign exchange market is also very important, Fang Hong values ​​​​the SGX even more. In the long run, the most important thing is to do a good job in the SGX. matter.

As for the duel in the foreign exchange market, you can just strategize, and you can also control it remotely if necessary.

In the last month of this year, the biggest news for the mainland capital market was the rapid implementation of the circuit breaker mechanism. At the beginning of this month, Cunlitou officially proposed new stock market regulations and released relevant regulations on index circuit breaker, which will be officially implemented on January 1, 2016. Implementation.

The speed of this landing is also called the speed of light, just faster than the SGX.

In other words, on January 4, the first trading day of the new year, Big A will not only usher in the opening of the SGX, but also the main board index will officially launch the circuit breaker mechanism on this day.

Regarding the implementation of the circuit breaker mechanism, people from all walks of life now have different opinions. Some are looking forward to it, some are worried, and some are confused. Most of them are full of uncertainty, and the only thing that can be certain is that they are full of uncertainty about the market outlook.

Fang Hong did not make any comments on the implementation of the circuit breaker mechanism for the Big A main board index, and he had no time to do it. He already had many things to do. A new round of capital war was unfolding in the foreign exchange market, and the Singapore Exchange was also involved. When you land at this time, you don’t have much time to eat.

This month, he didn’t even pay much attention to the news about the successful test of Elon Musk’s Falcon 9 recovery rocket.

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Weekend of December 20th.

SGX issued an announcement that the compilation of the SGX 50 Index has been completed. The sample constituent stocks selected for the index for the first time include 22 clusters of galaxy-listed stocks that have been transferred to the SGX.

In addition, three stocks were selected among the first batch of new stocks registered for listing, namely Jingdong, Mihayou, and Bilibili, for a total of 25 constituent stocks.

Under normal circumstances, the SGX 50 Index requires 50 constituent stocks. However, because it must be opened together with the opening day of the SGX, there are only 58 stocks in total on the first day of the SGX’s opening. The stock pool of the exchange is still limited. not enough.

However, this does not prevent the launch of the NSE 50 Index, and the 50 constituent stocks will be gradually added in the future.

Under normal circumstances, the SGX 50 index should not be launched so quickly, but the implementation of the SGX registration system pilot is extraordinary. The lack of constraints from external factors is the biggest reason why the SGX 50 can be launched simultaneously. .

Originally, the seven major galaxies-themed public funds also moved to the SGX, because the listed companies of the galaxies had already arrived on the SGX, and naturally they had to follow.

On the day the NSE 50 was announced, it was also disclosed that the passive open-end on-market index fund "NSE 50 ETF" would also be launched simultaneously, fully tracking the NSE 50 Index, and the holding stocks are also constituent stocks of the NSE 50 Index.

Individual investors who do not meet the admission threshold of SGX can trade the SGX 50 ETF fund on the exchange. The initial net value is 1 yuan. Buying 100 shares per lot is 100 yuan.

As an on-exchange ETF fund type, as long as they have an A-share account, investors can directly invest in and trade ETF types without the need to open additional permissions on the SGX.

There are ETFs on the exchange, and many public funds off the exchange have launched the "SGX 50 ETF Link A/C", which is also a passive index fund. Citizens without stock accounts can also indirectly invest in SGX stocks.

There are three main differences between ETF funds and ETF-linked funds:

The first is that the investment targets are different. ETF funds track specific indexes. The NSE 50 ETF tracks the specific index of the NSE 50. It will not track the Shanghai Stock Exchange Index or the Shenzhen Component Index. The purpose is to obtain the same returns as the index, while the ETF linked fund The tracking target is an ETF fund, and the purpose is to obtain the same returns as the ETF fund.

The second is that the trading venues are different: ETF funds are traded on the stock exchange and require an on-exchange account to be opened for trading, while ETF-linked funds are traded on the over-the-counter market and can be purchased from the fund sales platform.

The third is the different trading methods: ETF funds are traded according to the real-time market price, which is basically the same as stock trading. ETF-linked funds are traded according to the net value of the fund. That is, if you buy today, you will use today’s after-hours net value as the transaction price. .

As for the identification of OTC ETF feeder funds A and C, the main difference is the charging method. A is a one-time deduction of handling fees before purchase, and C has no subscription fee and redemption fee, but sales fees will be accrued on a daily basis after purchase. Therefore, The net worth of link A is usually higher than that of link C. Funds are generally long-term investments. If you insist on short-term operations in over-the-counter funds, for example, just one or two months, it is more cost-effective to choose C.

However, it is worth mentioning that the SGX 50 ETF fund is still different from other on-exchange ETF varieties. The main reason is that the trading time is two hours longer than other ETF varieties because it is consistent with the trading hours of the SGX.

Other ETFs and the main boards of the two cities open at 9:30, but the SGX opens at 9:00. The main board will be closed at noon, while the SGX does not distinguish between morning and midday trading, and will remain continuous as soon as it opens in the morning. The bidding lasted until 15:00 sharp, and the same was true for the New Securities 50ETF.

This is different from other ETF varieties. In addition, there are some differences between the SGX 50ETF and the SGX. The stock trading mechanism of the SGX is T+3 for institutions and T+1 for individual retail investors, but the SGX 50ETF Then all retail investors regardless of institutions will adopt the T+1 mechanism, which is the same as other ETF varieties on the market.

It seems that institutions can take advantage of the loopholes and use the NSE 50 ETF fund to circumvent the T+3 restrictions of institutions. Fang Hong's design is actually to encourage more institutions to invest in ETF varieties as much as possible, which can better reduce market fluctuations.

Because funds from ETF funds will not flow into a single stock, the assets held by the ETF are the basket of constituent stocks corresponding to the index, so buying an ETF is equivalent to buying a basket of stocks, and the funds will flow into the corresponding basket of stocks. In the constituent stocks.

Institutions have invested in the NSE 50 ETF. It is impossible to sell the ETF just because one of the 50 constituent stocks in the NSE 50 index has unexpected news. In order to avoid the loss of 1/50, they should also dump the other 49/50. This is purely an act of throwing away the watermelon in order to pick up the sesame seeds.

The accumulation of large funds in ETFs can reduce market volatility to a certain extent, or at least reduce the violent fluctuations of a single stock.

Therefore, there is no need for the Xinzheng 50ETF to also implement mechanisms such as T+3 for institutions and T+1 for retail investors. Relatively speaking, the ETF varieties are more diverse. Most ETF varieties are consistent with the rules of the main board, but some ETF varieties are not. Same.

For example, some ETF varieties that track H-shares maintain the T+0 mechanism. This is another set of rules, but some investors are not aware of it.

The SGX and the SGX 50 Index have opened simultaneously. Many institutions are supporting the market. There are also abundant investment channels for individual retail investors who cannot meet the entry threshold. Currently, those that are determined to be launched simultaneously include on-site exchanges. Many other varieties.

Institutions that support the fund include large institutions such as Xingquan Fund, Huaxia Fund, Yifangda Fund, etc., which have launched ETF funds, LOF funds, ETF/LOF feeder funds A/C, active hybrid theme funds, etc.

It is worth mentioning that a major difference between active funds and passive funds is that the fund manager of an active fund has great authority. He has the right to select stocks, build positions or adjust the composition of shares based on his own judgment. The fund's investment portfolio and the fund's income mainly depend on the investment level of the fund manager, such as the Seven Groups of Galaxies theme fund.

Passive funds can only follow the index, and the fund manager does not have much personal operation authority, such as the on-site NSE 50 ETF fund or the over-the-counter NSE 50 ETF linked A/C fund.

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