The first batch of Beixin Exchange themed funds to be lifted on November 23, with an average decline of 2208% in the past two years What information is worth paying attention to?

On November 23, 2023, the closing of a total of 8 closed-end two-year interval mixed funds managed by E Fund, Huaxia Fund, GF Fund, Southern Fund, Jiashi Fund, Huitianfu Fund, Dacheng Fund, and Wanjia Fund on the North Exchange is imminent According to statistics, as of November 21, 2023, the first batch of 8 thematic funds on the North Exchange have all reported negative returns since their establishment, with an average decline in returns of 2208%

Misleading Manipulation of Stocks in North Stock Exchange

In light of this situation, it can be determined that the recent speculation in the Beijiao Exchange is fishy.

The first batch of 8 Beijiao Exchange themed funds suffered losses, with an average loss of over 20%.

These funds are about to end their two-year lock-up period. If they perform poorly and cannot recover, these types of funds will definitely be difficult to sell in the future.

This is when the main forces come together to push up the net asset value and make it look good.

Just like every mid-year and end of year, many funds miraculously see a significant increase in stock prices for certain stocks. It’s all for the sake of making the net asset value look better to promote and attract more people to buy.

Only then can they earn more management fees in the future.

However, this kind of purely focused on improving the net asset value is difficult to sustain and carries great risk.

These funds invest at least 80% of their non-cash fund assets in Beijiao Exchange stocks.

The maximum raising limit for these 8 funds is 500 million yuan, which adds up to 4 billion yuan.

Currently, there are over 200 stocks in the Beijiao Exchange, and it’s probably difficult to find two companies with long-term investment value. So these funds are definitely not doing well.

Therefore, there is no long-term value to pay attention to.

One should stay away from junk stocks, poor performance, and fundamentally weak companies.

You may not make money in the short term, but you won’t suffer too much in the long run.

Currently, there are about 12 such funds.

They are all the same anyway. They definitely can’t compete with the safety of funds like the CSI 300, SSE 50, SZSE Component Index, and ChiNext.

If you have money and want to invest in index funds, you should definitely choose better options.

For index funds, it’s important to buy those with excellent weighted stocks inside.

From a short-term speculative perspective, the Beijiao Exchange stocks lack trading volume and are not suitable for speculation.

From a long-term investment perspective, Beijiao Exchange stocks have weak fundamentals and lack investment value.

So, the Beijiao Exchange 50 index fund is definitely not as good as other index funds.

And if you really want to invest in some growth and technology areas and are willing to take risks, the STAR 50 Index Fund is obviously better.

While there are also many stocks on the STAR Market that are not performing well and have high valuations, it is still possible to select a group of good companies from the STAR 50 Index constituent stocks.

Therefore, no matter how you choose an index fund, you won’t be able to find the Beijiao Exchange 50 on it.

This is when the securities firms seized the opportunity and attracted various investors in the STAR Market to open accounts with the Beijiao Exchange, and quickly speculated on it.

They boosted the net asset value of the funds.

Anyway, there are many tricks, but it’s meaningless.

Securities firms should have not encouraged people to open accounts like this in the first place.

Because investing is a very personal matter, and it is also a high-risk activity.

To achieve their goals and do all these things, it shows that the financial market is not well-regulated.

But no matter what, investors are not fools. There will definitely be fewer people who actually participate in Beijiao Exchange stock trading.

Most people will still invest in excellent and good companies.

Especially those who have invested more than 500,000 yuan in the stock market, their trading will definitely be more cautious.

In the end, the Beijiao Exchange cannot deceive many people, so the impact is not significant.

北交所市场:赚钱效应与估值修复需求 (Beijing Stock Exchange Market: Profit-earning Effect and Valuation Recovery Demand)

On the one hand, November is an important period for both the establishment of the Beijing Securities Exchange (Beijing Exchange) market within two weeks and the establishment of the Northbound 50 Index in November this year. Market funds leverage this opportunity to speculate and stimulate this emerging market.

On the other hand, after a deep adjustment, the overall valuation of the Beijing Exchange market is relatively low, with good growth potential, and there are signs of “undervaluation” in the market.

In addition, with the gradual entry of institutional investors and the improvement of the policy environment, the Beijing Exchange market, characterized by market capitalization advantage, has gained speculative attention and led the rise of A-shares.

According to statistics, the number of individual investors in the Beijing Exchange has exceeded 6 million households, and there are more than 800 social security funds and public funds participating in it.

In the face of this new market, what is lacking is the profit-effect. After the speculative stage, there is a need for valuation recovery in the Beijing Exchange market.

As of November 21, 2023, according to public data from the Beijing Exchange, the current number of listed companies in the Beijing Exchange is 231, with a total market capitalization of 315.323 billion yuan.

From the establishment two years ago to the current 231 listed companies, the Beijing Exchange market has developed relatively fast. Even though there has been a rapid upward trend in the short term, the Beijing Exchange market has only returned to its position at the beginning of this year, still a considerable distance from last year’s peak.

Against the backdrop of improving profitability of listed companies, the market that experienced significant declines in the early stages is gradually showing a trend of valuation recovery. On the one hand, it is a technical correction for the previously large decline, and on the other hand, it is the process of valuation recovery for companies with stable fundamentals, reducing the risk of continued undervaluation.

However, considering that this market is relatively new and the overall market value is not large, in the context of stock capital game, the market takes advantage of the speculation. But the factors determining the height of the market’s rise still depend on growth and liquidity. Once the profit effect of the market begins to cool down, it is not ruled out that the funds involved in the early stage may have a demand for profit taking, and market differentiation will become more pronounced.

Improvement in liquidity drives the surge in the North Exchange’s stock prices.

Yesterday, it surged by 11% in the trading session, and today it surged by over 8% again. Do you think it’s about a specific stock? No, it’s about the whole index - the SZSE Component Index.

The SZSE Component Index is a well-known loser in the A-share index family, a complete loser. Since its inception nearly two years ago, it has been in a downward trend, with a decline of over 30%. What’s even worse is that the trading volume of the entire SZSE Component Index has been consistently below 1 billion, even lower than that of a single stock on the main board. The liquidity is extremely poor. Therefore, the stocks listed on the Shenzhen Stock Exchange have long been overlooked and are like a scythe entertaining itself.

Unexpectedly, recently, this loser suddenly turned into a winner. In just a month, the SZSE Component Index has risen from 700 points to 950 points, with an increase of over 30%. In the past two days, it has completely skyrocketed, with frequent jumps of 10 points, and the trading volume has continually hit new highs. It has surpassed 10 billion for two consecutive days, surpassing the total trading volume of the past 10 days. The once loser has turned the tables and started singing.

Looking at this rise, all the top-ranking stocks are from the Shenzhen Stock Exchange. It’s really difficult to resist the temptation. It makes me want to rush in and compete with the scythe. In the end, I resisted because after all, the scythe is worried that there are no fresh cabbage entering the game and is eagerly waiting.

Seeing the abnormal rise of Shenzhen Stock Exchange stocks, some friends on the planet asked what was going on. Due to the high risk, it’s not suitable to discuss Shenzhen Stock Exchange stocks on the planet, so let’s briefly discuss it on the public account.

The core reason for the surge in Shenzhen Stock Exchange stocks is one thing: improvement in liquidity.

First of all, the simplification of account opening procedures has increased the number of users entering the market and enhanced liquidity. On September 1st, the “Investor Suitability Management Measures of the Shenzhen Stock Exchange” were issued, simplifying investor approval procedures, and introducing measures to recognize qualified investors of the Science and Technology Innovation Board, which means that those who have already opened trading privileges for the Science and Technology Innovation Board can self-open trading privileges for the Shenzhen Stock Exchange on their mobile phones. According to a brokerage staff, since the rebound on October 24th, the average daily number of new accounts opened on the Shenzhen Stock Exchange has increased by nearly 50% compared to before. After the casino starts making money, the gamblers rush in, making the atmosphere lively and increasing liquidity.

Secondly, the inclusion in the CSI All Shares Index has attracted incremental funds. Recently, China Securities Index Company announced that eligible stocks listed on the Shenzhen Stock Exchange will be included in the sample space of the CSI All Shares Index, and the index sample adjustment will be implemented on the sample adjustment day in December 2023. This is the most favorable measure to improve the liquidity of Shenzhen Stock Exchange stocks. Being included in the CSI Index across markets means that more incremental funds will participate in the investment in Shenzhen Stock Exchange stocks. With the inflow of incremental funds, the liquidity of Shenzhen Stock Exchange stocks will continue to improve, thus leading to a surge in stock prices!

Finally, the introduction of more market makers through securities firms has improved liquidity. The threshold for market makers has been lowered. The net capital requirement for securities firms has been reduced from 10 billion yuan to 5 billion yuan. The rating requirement has been adjusted from continuous three-year rating A to a rating of A in the past three years and BB or above in the past year. This means that more securities firms can participate as market makers and provide more liquidity for Shenzhen Stock Exchange stocks.

The latest news shows that the Shenzhen Stock Exchange has sent letters of approval for market-making trading evaluation tests to multiple securities firms such as Haitong and Guoyuan. With the introduction of more market-making securities firms, the liquidity of the Shenzhen Stock Exchange will continue to improve, and the stock prices will rise in response.

The above is the reason for the surge in the Shenzhen Stock Exchange, nothing else, just that the liquidity has been improved in multiple aspects. The Shenzhen Stock Exchange has become hot, with a cumulative increase of 13.32% in just two trading days. It’s tempting, but the trading volume on the Shenzhen Stock Exchange is only 1% of the total trading volume of the A-share market. The listed stocks on the Shenzhen Stock Exchange are still junk and non-mainstream. It’s better not to touch them.

Tomorrow, eight closed-end mutual funds listed on the Shenzhen Stock Exchange will have their lock-up periods lifted. After being closed for two years, the average return rate of these eight funds is -22%, which is really painful to see. When the lock-up period is lifted tomorrow, if you don’t want to take risks, it’s better to wait until the wave of unlocking is over before taking any action.

The focus of investment should still be on the several directions we have discussed before, especially the AIGC sector, which has performed exceptionally well recently.

For example, Gravity Media, which has been discussed on the planet, has hit five consecutive limit-up prices.

Another example is Chinese Online, which has seen an increase of over 200% in less than a month and has become one of the best-performing stocks on the planet in the past month.

As for the much-cared-about Sailisi, I have already liquidated it. Please refer to the article “Liquidation of Sailisi” for details. The viewpoint is clear: Sailisi between 80-100 yuan has no trading value, and it is only worth entering after surpassing and stabilizing at 100 yuan.

As it was said in the past, “There are no waves that only rise, so when you have a day of rising, you will definitely have a day of falling.” The stock market is the same, there is no bull market that only goes up. Always be curious and tread carefully like walking on thin ice.

Increase in shipments, what else to say.

Raise the shipment and what else is there to say?

Classification of Northern Securities as a gambling industry

Classification of the Beijing Certificate as the gambling industry

I personally have high expectations for this matter. In the future, it should be able to take away a significant portion of Macau’s business.