My Fintech Empire

If the 203 companies listed next door were placed on the SGX market, more than 90% of them would not pass.

But looking at the growth rate, the number of listings in 2020 may exceed that of the SGX market.

Logically speaking, the current A-share market is completely different from five years ago, because the emergence of the SGX market has turned the A-share market into a unique global capital market with "one share, two systems", and investors have basically moved to the SGX market.

Why can so many companies in the two cities next door successfully raise funds through IPOs, and why can they successfully go public? It is impossible under normal circumstances.

The answer is: funds.

Including public funds and private funds. Now that the time has come to the node of 2020, there are actually no 160 million retail investors in the A-share market who go to the two cities next door to buy new stocks.

But there are still so many companies that can successfully raise funds through IPOs, and the reason is the result of the participation of many public and private institutions.

In other words, it is hundreds of millions of investors who provide financing and liquidity for these companies.

Mainly, some newly issued active hybrid funds in the past three years have brought huge liquidity. Fund managers invest part of their position funds in the SGX market, and the other part of their position funds go to the two neighboring markets to subscribe for new shares.

The allocation of stocks in the SGX market is mainly selected from the constituent stocks of the SGX 50 Index. The increase brought by the allocation of stocks in the SGX market covers the loss of the decline after the new shares next door. After hedging, the fund as a whole can still rise a lot.

However, these hybrid funds have all underperformed the SGX 50 Index without exception. The cumulative net value income of most of these funds does not exceed +15% throughout the year. It should be noted that the annual increase of the SGX 50 Index has reached +47%.

Where did the +30% increase go? The answer is self-evident. It is to take over the new stocks in the two neighboring markets. These new stocks have basically been falling since they were listed, and they paid the bill here.

Many investors don't know that if they buy a passive index fund such as the Xinzheng 50 Index ETF Link A/C, the annual return rate can be +45%, and if they buy 100,000, they can earn 45,000.

However, if they buy these so-called active hybrid funds, the annual return rate is only +15%, and if they buy 100,000, they can only earn 15,000, which directly reduces their earnings by 30,000, but the risk they bear has not been reduced accordingly, but has increased instead.

The 30,000 that they didn't earn was lost by the fund manager after he bought the new shares, which was actually indirectly harvested, because the new shares next door really dared to be valued at a sky-high valuation, and the actual value was at most 2 yuan/share, but they dared to be priced at 20 yuan/share, 50 yuan/share, or even 100 yuan/share at the time of issuance.

The result is that the stock prices of these companies peaked on the day of listing, and then there was an endless downward trend, and the 30,000 that they didn't earn was lost just like that.

In fact, over the years, many investors have gradually discovered the tricks here and no longer buy the so-called active hybrid funds. They either open an account and directly buy the New Securities 50ETF or buy the New Securities 50ETF Link A/C and other passive index funds.

But again, although more and more investors have discovered that the signs are not right, the scale of investors is too large, several times larger than that of stock investors. The current number of stock investors in the A-share market is about 165 million, but the number of investors has reached an astonishing 600 million.

With such a huge base size, there will always be investors in their own information cocoons, and the actual number is actually very large.

Investors in their own information cocoons do not know the scenery outside. There are even many fund novices who think that funds are safer and less risky than stocks, and they can't even tell what is a bond fund or a stock fund.

These investors are very satisfied when they see a +15% return in a year, which is much greater than the interest earned by depositing money in a bank.

Because of this, the next door can still issue new shares, because there are many investors in their own information cocoons who are happy to pay for subscriptions and are very satisfied with such returns.

Those active hybrid funds will allocate about 40% of their positions to the asset targets of the SGX market, so that the funds can make profits overall, so that these investors can continue to increase their positions and subscribe.

At this moment, Fang Hong sneered: "Sooner or later, these people will kill this industry, cripple it, and stink it up..."

Within three years, these people will kill themselves, because investors in the information cocoon cannot stay out for a lifetime. In this era of short videos, the speed of information dissemination is there. As time goes by, more and more investors will walk out of the information cocoon.

When they realize that they have taken the same risks but earned so much less, they will naturally abandon those so-called active hybrid funds and turn to invest in the New Certificate 50ETF Link Fund, or directly open an account to hold the New Certificate 50ETF in the product.

There are currently 7 SGX 50ETFs in the A-share market, 5 of which have market caps exceeding 1 trillion yuan, one of which has reached 3 trillion yuan, and the remaining 2 have reached 600 billion yuan and 650 billion yuan, respectively. These two are the latest to be issued and listed, and it is only a matter of time before they exceed 1 trillion yuan.

The total size of these 7 SGX 50ETFs has reached an incredible 11 trillion yuan, because the entry threshold of the SGX market is too high, mainly the 1 million yuan holding market value threshold.

More than 95% of the retail investors in Big A can only participate in this market indirectly by trading the NSE 50 ETF. They themselves cannot directly invest in individual stocks in this market, so the total size of the seven NSE 50 index has reached 11 trillion.

But at this moment, Tian Jiayi continued to report: "In 2019, the transaction volume of the SGX market reached a record of 220 trillion, and the average daily transaction volume exceeded 900 billion."

Although the SGX market implements the trading mechanism of T+3 for institutions and T+1 for retail investors, the trading activity has not decreased at all, and it has reduced the two neighboring markets to rubbish in seconds. The Shanghai stock market’s turnover this year is 34 trillion, the Shenzhen Stock Exchange is 51 trillion, and the combined turnover of the two cities is 85 trillion, less than half of the SGX market.

Tian Jiayi looked at the materials in his hand and continued: "The total market value of the three major A-share trading markets in 2019 was 122 trillion, and the per capita income of investors reached 170,000 yuan. 72% of investors in the SGX market achieved profits, and 18% About 10% of investors maintained their capital, and about 10% lost money.”

The SGX market is able to make profits for the vast majority of more than 70% of investors. A very critical point is the high entry threshold. Because of this, retail investors can only buy the SGX 50 ETF. As long as they don’t play with it. It is difficult to lose money even in ultra-short-term trading.

Because the NSE 50 index is still in a bull market, and has increased by more than 45 points for three consecutive years, it is really profitable to buy with your eyes closed, so that countless investors have the stock god Buffett. déjà vu.

At the end, Fang Hong smiled and nodded with satisfaction: "It's really good. The management of SGX is still very effective. The stock market is booming, most investors have made money, and now the size of the SGX market is also huge." Well, then this year’s macroeconomic data will definitely not be bad. Have the internal statistics of Qunxing been released?”

After Tian Jiayi heard this, he immediately said: "What just came out today is that our internal estimate that the total national consumption in 2019 will exceed the 50 trillion yuan mark, a year-on-year increase of more than 19% compared to last year's 42 trillion yuan, consumption is the driving force. It has remained the first driving force for domestic economic growth for six consecutive years.”

Although this is the internal analysis data of Qunxing Group, it contains extremely high gold content and there is no data embellishment in it.

If stock investors have “spent” money in Big A in the past, how can they still have the money to spend money in physical stores?

Now that I have made money in Big A, or to be precise, I have made money in the SGX market. With the wallet in my pocket bulging, I can buy a new computer, a new mobile phone, a new energy vehicle, etc.

The final reflection on the macro data is that this year’s total national consumption has soared past 50 trillion, with a year-on-year growth of 19 percentage points. Both growth rates and absolute values ​​are quite astonishing figures.

…