My Fintech Empire

The SGX 50 Index has been strong since the opening. Overseas capital has entered the SGX market through the SGX-Hong Kong Stock Connect channel. Among many overseas investment institutions, two of the world's top ten wealth sovereign funds have participated in the SGX market for strategic allocation after the first opening of the "SGX-Hong Kong Stock Connect" today.

These two investment institutions are the Norwegian Global Pension Fund (GPFG) and the Public Investment Fund of Sart (PIF).

As the world's largest sovereign fund, Norway's GPFG is known for its extensive investment in global stocks, bonds, real estate and commodities. As the driving force of Sart's economic transformation, PIF has invested heavily in technology, innovation and infrastructure. The current many listed companies in the SGX market can be said to be highly compatible with this local tyrant institution.

As the SGX market continues to strengthen, the Shanghai and Shenzhen stock markets next door have also been brought up, and foreign capital is also continuing to flow in.

Although there are many junk stocks next door, there are still high-quality core assets, and since the second half of the year, foreign capital has also been continuously flowing in to increase holdings of blue-chip stocks.

At around 11 a.m., data showed that today's net inflow of northbound funds has reached 33.1 billion, setting a new historical record.

Among them, the net inflow of SGX exceeded 22.6 billion, accounting for nearly 70%.

From the data, foreign capital obviously prefers stocks in the SGX market, although the price-earnings ratio of this market is already the highest among the three major A-share trading markets, and it has been denounced by countless experts as a bubble and dangerous.

But the foreign capital flowing in is obviously not affected by such arguments, and they have their own investment logic.

Although the SGX market has officially opened up the access channels for foreign capital, there are still some restrictions on the proportion of foreign capital holding stocks of listed companies in the SGX market, mainly including three points.

First, the shareholding ratio of a single foreign investor in a single listed company shall not exceed 5% of the total share capital of the listed company;

Second, the total shareholding ratio of all foreign investors in a single listed company shall not exceed 25% of the total share capital of the listed company;

Third, the total shareholding ratio of foreign capital holding companies in the SGX market reaches 21% of the total share capital of the company as a warning line, 23% as a suspension of buying line, and 25% as a mandatory reduction line.

These three restrictive measures make overseas capital investing in the SGX market only a financial investor, and will not threaten the control of these companies.

Take the rich PIF investment fund as an example. Assuming that the institution is very optimistic about a SGX-listed company and is also very rich, it will buy a lot of stocks, but it can only buy 5% at most. If it reaches this number, it will not be able to buy any more. It will not be able to pass the SGX trading system platform.

If the rich still want to buy, they can only buy another stock, which is also capped at 5%.

However, in theory, there is still a way to increase holdings by more than 5%, that is, the entire vest institution can buy another 5%. In theory, at least four or N vests can be used to buy the upper limit of 25%.

This is not only theoretically valid, but also in practical operation. After all, it is difficult for the SGX market to penetrate the underlying structure of overseas capital institutions. However, Fang Hong does not care at all, and the SGX market does not care either. Even if the upper limit is 25%, it will not threaten the company's control.

In actual situations, it is basically impossible for a single foreign institution to hold 25%, and it is not possible to use a vest, because it is facing global capital and others will intervene. The SGX market, regardless of whether the foreign institutions involved are fake or not, only recognizes that your institution's shareholding ratio does not exceed 5%, and only recognizes that the total shareholding of all foreign institutions does not exceed 25%.

With the closing of the A-share market, the three major trading markets all ended in the red today. The SGX 50 Index directly reversed the previous five consecutive declines with a long positive line with large volume, and broke through the recent high point, closing up +3.08% at 3962.82 points, returning to the 3900 point mark. The SGX market also released a huge volume of 720.2 billion today, an increase of nearly 200 billion in trading volume compared with the previous trading day.

In terms of the Shanghai and Shenzhen markets, the Shanghai Composite Index performed well today, rising +2.05% after the market to 2829.27 points, with a turnover of 155.7 billion; the Shenzhen Component Index closed up +1.12% at 9281.48 points, with a turnover of 192.7 billion. The total turnover of the two markets was 384.8 billion, accounting for just over half of the SGX market.

The amount of funds released in the SGX market today is more than that in any of the Shanghai and Shenzhen stock markets. It has to be said that this market is now the actual face of the A-share market. A large number of junk stocks in the two neighboring markets have already evolved into "penny stocks" in advance, that is, there is no volume. For some stocks, even a few hundred thousand yuan of selling pressure can cause a drop of more than three percentage points.

Today is the first time that the SGX market has opened up foreign capital access channels. After the market closed, this has become a topic of discussion for many people, and everyone is paying close attention.

Data shows that today, northbound funds have achieved a record net inflow of 62.7 billion, which has been reported by many financial media, because it has never been so exaggerated before. The net inflow scale of more than 15 billion per day is not much.

However, after a closer look, investors suddenly realized that the net inflow of the Shanghai and Shenzhen stock markets only accounted for 7.5 billion of it, which is normal.

The remaining 55.2 billion net inflows all went to the SGX market. While investors were surprised, they also felt that it was reasonable. After all, the SGX market has been in a bull market since its opening.

If you insist on talking about a bear market, there have only been two technical bear markets. The first was the A-share circuit breaker incident at the beginning of the market opening, which was dragged down by the two neighboring markets, causing the Xinzheng 50 Index to briefly fall below the current historical low of 788.87 points. The decline at that time exceeded 20%, entering a technical bear market.

The second was the WeChat illegal reduction event. At that time, the Xinzheng 50 Index also fell sharply by more than 20%. However, these two so-called technical bear markets were shorter than the last. The WeChat illegal reduction wave was quickly pulled up, creating a golden pit that is hard to come by.

Since the opening of the Xinzheng 50 Index, it has fallen by more than 20% twice, and it has never appeared since then. Although there have been many declines and adjustments, they generally fell by about 10 percentage points and then rose again, and the largest adjustment was also in the 15 percentage point range.

The recent round of correction from more than 4,000 points to more than 3,640 points was only a correction of about 10 percentage points. Now it has returned to above 3,900 points. Today's closing has achieved a cumulative rebound of +8.84%.

…

After the weekend, it was Monday, July 23.

The A-share market started as expected. The SGX 50 Index opened slightly lower and then strengthened again after a few minutes. Foreign capital continued to buy, and especially preferred the concept stocks of the galaxy. You should know that these stocks have risen very high at the current position.

But foreign capital was not afraid and continued to buy.

In the last hour of the afternoon trading, the SGX 50 Index regained the 4,000-point mark again. It took less than two months to stand on this integer mark again since it fell below on May 23.

At the close of the day, the SGX 50 Index closed up +1.66% again, at 4,028.69 points. Today's SGX market still maintained a trading volume of 700 billion.

The scale of foreign capital inflows decreased compared with yesterday, but still reached 53.9 billion. In two days, the scale of foreign capital net inflows into the SGX market exceeded 100 billion, which attracted global attention.

Various financial media followed up and reported the news that foreign capital was "crazy buying" stocks in the SGX market, and its popularity far exceeded people's previous expectations.

……