Chapter 1033 [SGX is that window]

Zhang Qi was still browsing the materials, and Fang Hong immediately said in an orderly manner: "Based on these five inclusion conditions, when selecting constituent stocks of the NSE 50 Index, non-financial companies will be screened according to different industries. Generally, the industry will be selected. Companies that are among the best or have high growth potential are included in the sample stocks."

Hearing this, Zhang Qi couldn't help but said: "That will test the judgment of the reviewers, especially the selection of stocks with growth potential."

Fang Hong smiled and said: "So this matter must be done by the most professional team."

When Zhang Qi heard this, it was no surprise that this professional team would definitely be composed of consultants from Qunxing Capital, who would play the leading role in exploring the value of the capital market and exploring the value potential of various industries. Qunxing Capital's capabilities were definitely among the top players.

Fang Hong added: “In order to ensure the influence and high quality of the NSE 50 Index, the component stocks compiled must be strictly tested. Once a company suffers a major loss, the auditors quickly evaluate whether it can return to its original market peak. , once it is discovered or assessed that the company has no hope of improvement, the stock will be quickly proposed, even the target of Galaxy Group is no exception."

Fang Hong continued: "So the adjustment cycle of the NSE 50 index constituent stocks is carried out quarterly, and there are four adjustment windows a year. If the adjustment window comes, the original 50 constituent stocks have no problems and there are no better high-quality stocks. constant."

After hearing Fang Hong's explanation, Zhang Qi now firmly believes that the SGX 50 Index will maintain the overall upward trend of the bull market for ten years in the future, provided that this SGX registration system pilot can be successfully implemented.

According to this set of top-level design rules, the adjustment of constituent stocks of the NSE 50 Index can be simply summed up in one sentence: stocks that are about to fall sharply or enter a downward cycle will be moved out, and growth stocks with potential that have not yet risen will be moved out. Get the tickets transferred in.

The votes that want to go down are called out, and the votes that want to go up are called in. The NSE 50 index can't go up rapidly, but it can maintain the bullish upward trend for ten years.

This is also a very good mechanism to curb madness, which can inhibit the occurrence of the siphon effect, because when everyone knows that these tickets can go up rapidly, they will definitely flock to them. Transferring them out is equivalent to telling investors that these tickets are going to go up. If you fall, don't rush inwards.

In the same way, the stocks transferred in also tell investors that this stock has a high probability of rising sharply in the future and is worth investing in, so this target will be popular in the capital market.

But this is not the optimal solution and needs to be patched, because it is too direct and too simple. The result will inevitably cause the stocks transferred out to plummet immediately, and the stocks transferred in to skyrocket immediately. Investors have no brains to look at your new certificate 50 Just expand the adjustment window of the index, but it will intensify short-term violent fluctuations.

Therefore, theory is at the theoretical level, but the practical level is another matter. Execution by completely copying the theory often fails to achieve the expected results, and may even lead to the opposite evolution of expectations.

Fang Hong’s solution is actually very simple. The constituent stocks that are transferred out will generally enter an adjustment cycle, but some of them will continue to rise. By the same token, not all the constituent stocks that are transferred in will rise sharply. Some stocks do not rise or even fall.

In this way, investors will not mindlessly follow the NSE 50 Index to operate, thereby amplifying market fluctuations. To make money, they still have to use their brains.

However, this idea seems simple, but in fact it is extremely difficult. It requires auditors to have extremely professional judgment, analysis of major listed companies, and understanding of the prospects of various industries in order to be able to do it with ease. It can be seen that those who are competent will definitely They are all top-notch experts within Star Capital.

Retail investors are easily fooled. When a combined force is formed, the energy of both long and short is huge. For example, for long, the GEM next door was hit by the daily limit on the first trading day of the year last year. For example, for short, the current The crash situation is also the best portrayal. When the market plummets, the panicked army of retail investors follow the trend and flee, forming a tragic stampede.

After all, the army of retail investors often either swarms or disperses. This kind of group behavior effect, whether it is short or long, is not a good thing.

Fang Hong does not want too many retail investors to directly participate in the SGX. The ideal proportion is about 20% of the total amount in terms of the amount of funds, and the proportion cannot exceed one-third at most.

Therefore, the entry threshold for direct participation must be raised, and the capital threshold alone must not be less than one million yuan.

While raising the threshold, it does not mean that small investors will not have the opportunity to invest in SGX-listed companies, because the SGX 50ETF on-market index fund will definitely be issued accordingly. Investors do not need to open SGX permissions, they can just have an A-share account. Direct investment in traded ETF funds.

Over-the-counter investors can also invest, and there will definitely be passive index funds such as the NSE 50 ETF Index Link. These on-exchange and OTC funds directly track the NSE 50 Index.

There will also be some SGX-themed active public funds, that is, the fund managers themselves select stocks for investment on the SGX.

In the future, if any investors ask about what to invest in, Fang Hong will give the only answer: fixed investment in the SSE 50 Index. Just follow stock god Buffett's answer to investors buying the S\u0026P 500 Index.

Don't ask, just ask and invest in the SSE 50 Index.

Fang Hong promoted the SGX to create the SGX 50 Index, not only for the big goal of an independent valuation system strategy, but also to allow domestic public investors to enjoy the dividends of the upgrading of the technology industry.

The theme is bigger and the pattern is higher. This is also one of the important ways to achieve the goal of common prosperity.

…

Finally, after reading this material, Zhang Qi had a general idea in his mind. The first and most important point was that promoting the SGX was in line with the common intentions of both parties and the city. All three parties were unanimous. , there is no internal disagreement.

Zhang Qi put the materials on the table and turned to look at Fang Hong and said, "What do you need me to do?"

Hearing this, Fang Hong did not respond directly: "Lu Xun once commented that Chinese people always like to be harmonious and compromise. For example, this room is too dark and a window must be opened here. No one will allow it." But if you advocate taking off the roof of the house, they will come to mediate and be willing to open the windows. After all, he is a great writer, and he really hits the nail on the head."

After hearing this, Zhang Qi probably understood. At this time, Fang Hong looked at him and said bluntly: "Mr. Zhang, at the meeting in Beijing, I advocated demolishing the roof. You come to help mediate. The SGX is that A window.”

Zhang Qi immediately laughed and said cheerfully: "Mr. Fang, you said something wrong. This is not to help, but to promote together. You can't refuse it if you can. To tell you the truth, I have long imagined that the new city can An exchange has been launched. As far as I know, the city also has this idea. Even if you don’t come to me today, I will come uninvited in the future, and the city may also discuss this matter with you. What a coincidence. , as the saying goes, heroes think alike."

Things were settled right away.

After a moment, Zhang Qi suddenly sighed: "With your top-level design approach, it may not be easy for the SGX pilot to be implemented."

Zhang Qi has no objections to the SGX under Fang Hong’s design framework, because he knows very well that if it cannot be done according to his top-level design, he, including Qunxing Capital, will never spare no effort to promote the implementation of the SGX. According to this idea, it is just one more mediocre exchange.

Fang Hongyan said concisely and concisely: "Everything depends on human effort. Do your best and obey the destiny."

Do everything you should do well, do everything humanly possible, and God will decide whether you can achieve success in the end. Just wait for the results.

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