Category: Money tips Release Date: 2007-03-17
Source: Jiangsu Tianding Author: Qin Hong
Recently, the "qualified foreign institutional investors in securities investment management approach" (hereinafter referred to as "measures") issued, which means that QFII After nearly four years of hard work, finally ushered from the pilot to the formal implementation of a historic leap, A share market will be the future direction of the resulting far-reaching changes.
QFII usher in opportunities for development
In the pilot process, QFII has made great achievements. As of the end of July, China has approved 45 QFII qualification, the principal amount of its import about 55.1 billion yuan, only in April this year to July, the new principal import amounted to 10.6 billion. QFII has quietly become the A-share market is an indispensable subject of funding.
A-share market, taking into account the many practical, access to the pilot process on QFII qualification, lock period, and so set a higher threshold. At that time, which is conducive to the progress of QFII pilot, but it also makes the scale of QFII funds decreased. "Measures" to reduce the QFII access threshold, pension funds, charitable foundations, endowment funds and other institutions eligible for the main access to more than three decades reduced by more than five years. This will help more foreign institutions to become a QFII candidates, making the market form a substantial growth over the future size of QFII optimistic expectations.
More importantly, the "measures" on QFII account management system, lock-up period Deng Jun made a positive adjustment, which is expected to stimulate foreign institutional investors to apply for QFII qualification passion. Factors such overlay, can be expected in the coming time period, QFII will usher in a major development opportunities.
QFII boost the market a qualitative change
QFII and the great development of A-share market will do more to bring a positive effect. In the QFII pilot process, its A-share market to do more effect on the expression has been good. Over the past four A-share market the process of development, every big rebound in the inflection point is looming in QFII do more positive presence. The market reason to believe that, with the QFII system, leap, QFII to the A-share market will play a more positive effect.
From the financial point of view, lowering the threshold will change the current QFII bank, broker-based pattern, offshore insurance companies, fund management institutions, is expected to become the future of rookie QFII. From Korea, Taiwan and other neighboring QFII securities market structure, foreign insurance companies, fund management institutions are often accounted for 70% of the total QFII. This means that the future of A-share market scale of QFII funds will be a qualitative leap.
Second, the investment philosophy of the A-share market trends impact. While the pilot process on the A-share market QFII investment philosophy has had a positive and far-reaching impact, but because of the banking, securities for the QFII the subject of the short-term thinking still exists. The Awkwardness of 2005 QFII turnover still reached 193%, which buy and hold long-term investment ideas in accordance with a certain contrast. However, the entry of institutions such as pension funds, is expected to Screed A-share market volatility space, promoting the A-share market running smoothly. It is worth mentioning that the future of Industrial and Commercial Bank, Construction Bank, China National Petroleum, China Mobile and other large market capitalization companies landing A-share market will also provide long-term QFII investment target, the future A-share market is expected smooth trend.
The short-term should not be blindly optimistic about the
QFII on the A-share market, but the positive impact will be constrained by two factors. First, foreign exchange management policy changes. QFII investment quota, after all, still need the approval of the State Administration of Foreign Exchange, while in the current appreciation of the renminbi against the background of how to reconcile the great development of QFII and the relationship between the RMB revaluation remains an important issue. Therefore, to reduce short-term factors such as QFII threshold, may not be able to quickly bring a large-scale expansion of the wave of QFII funds.
Secondly, QFII to expand the size of A-share market needs and to expand the size of the progress of high-quality stocks to match, otherwise, there is still likely to occur in 2004, after approval of QFII quota influx of closed-end funds, convertible bonds, the bond market, rather than the phenomenon of stock market . Looking at the present A-share market, the media on the QFII lighten up in the second quarter reported frequent, showing that the investment attractiveness of the current A shares have declined. In a foreseeable time period, A-share market could the emergence of a group of high-quality stocks will be the ability to promote the development of QFII big A-share market a key factor in large-scale development.
