Chapter 1179 [Stabilization Fund]

After a while, Fang Hong said calmly: "The NSE 50 index does not need to be benchmarked against any index, let alone the US stock market. To benchmark against the old US stock index means that the subconscious mind is still based on its value and its market. Anchor, we must abandon this concept, otherwise, how can we talk about an independent valuation system strategy? How can we talk about regaining market pricing power?"

Fang Hong added: "Besides, our country is still in an upward cycle. Companies listed on the SGX represent, to a large extent, the transformation and upgrading of high value-added technology industries. If the SGX 50 Index is to be benchmarked, it should follow. Benchmarking the national destiny has a realistic basis."

Currently, the vast majority of companies listed on the SGX are technology companies. Traditional companies have them, but they account for a small proportion. However, there are no financial or real estate companies. Not even one of them, even the Internet, which uses innovative technology as its banner. IPOs on the SGX were all rejected by financial institutions without exception.

Internet finance is quite hot and highly sought after at the moment.

But here on the SGX, these types of industries are classified into the traditional financial classification, and financial companies cannot be listed on the SGX, so they are naturally excluded.

Regarding the market's call for the launch of more indexes, although SGX is inclined to the market's call, Fang Hong's attitude can play a decisive role at critical moments.

After a while, Fang Hong thought for a while and then said: "The SGX currently has an SGX 50 index, which is enough. As for whether it is needed in the future, let's wait until later."

Tian Jiayi originally thought that Fang Hong would agree, but he did not expect to deny it, and immediately said: "But what should we do now that a large number of investors are buying the NSE 50 Index? This problem needs to be solved urgently. Is it necessary to lower the market entry threshold? ?”

Since she chose not to launch a new index, her first thought was to lower the entry threshold to solve the problem of capital diversion.

For example, if the SGX’s 1 million capital access threshold is lowered to 100,000 yuan, the proportion of investment accounts exceeding 100,000 yuan in the A-share market is about 12.5%. If the threshold is really lowered to 100,000 yuan, there will be close to 2,000 Millions of investors can directly invest in SGX to buy individual stocks, which is equivalent to an increase of more than ten times the number of retail investors.

However, Fang Hong has no intention of lowering the market entry threshold of SGX: "There is no need to lower the market entry threshold, just let SGX set up a stabilization fund."

Hearing this, Tian Jiayi couldn't help but nodded: "This is a feasible method."

The so-called stabilization fund is a non-profit institution whose main purpose is to balance the irrational and violent fluctuations in the securities market through reverse operations in the stock market. Its mechanism of action is similar to the open market operations of the Central Bank.

When stocks experience irrational and violent fluctuations, stabilization funds may operate to stabilize the market.

For example, sell stocks when market bubbles are rampant or market speculation is feverish, or buy stocks when stocks plummet irrationally and the value of stock investment becomes apparent. Its function is to stabilize the capital market, especially when the market plummets sharply in a short period of time, as a defensive means, especially to defend against the crisis of impact-type decline.

Fang Hong said methodically: "The start-up capital of this stabilization fund will be 1 trillion at first, and it will increase year by year until it reaches the 10 trillion level in five years. This year's 1 trillion plate, Xincheng Finance will invest 5,000 billion, and the remaining 500 billion will be collected by relevant entities participating in the SGX market."

Relevant entities in the market include the total share capital of listed companies, the net capital of securities companies on the SGX, the assets managed by securities companies on the SGX, the assets managed by fund companies on the SGX, etc., and certain proportions are set for collection.

There is no doubt that among the relevant entities participating in the SGX market, Qunxing is definitely the largest entity, and it is definitely the institution that pays the most money. There is nothing much to say.

As for those who don’t want to pay this money, then don’t come to this place to play, it’s that simple.

At this time, Tian Jiayi said: "Although Xinzheng's finances are very generous, it will definitely not be able to come up with so much funds for a while."

Fang Hongyun said calmly: "It's possible to expand debt. Xincheng doesn't have any debt pressure now. If it doesn't work, the interest rate can be lowered. If no one in the market subscribes to Qunxing, just go and subscribe. But basically, any problem that can be solved with money is not What a big problem."

This is definitely not a boast. Problems that can be solved with money are really not a headache for Qunxing. The real headaches are those things that cannot even be solved with money.

With this trillion-level stabilization fund, it can play a very good role in calming the violent fluctuations of the NSE 50 Index.

Although one trillion in funds is an astronomical figure, it cannot completely absorb market fluctuations for the entire SGX market with a current market capitalization of 20 trillion. It mainly serves as a market benchmark to stabilize investor sentiment.

If stock investors madly buy the NSE 50 ETF and push the NSE 50 index to skyrocket, and the speculative atmosphere is too serious, the open market operation of the stabilization fund is equivalent to shouting: The rise is too violent now, and you want to go up even higher, then I'm going to release the selling pressure and hit the market!

If you still don't listen and want to hard-top, then the stabilization fund will really release selling pressure and start to smash the market, making money in tears.

Investors generally don't go for hard caps, and they won't get any good results if they go against this kind of trillion-level stabilization fund.

On the other hand, in the same way, when there is panic selling in the market, stabilization funds also conduct open market operations. They will be the first to come out and yell: The price is falling too hard now. If you have the value to buy the bottom, buy it as soon as possible. If you don’t buy it, I won’t wait. you!

Investors will most likely buy the bottom. If no one follows, then the stabilization fund will really carry out market operations. They will continue to do it even if they tell you not to do it, and you will not follow the bottom even if they ask you to buy the bottom. Don't say that the stabilization fund will be overtaken by that time. At the bottom of the market, don't talk about stabilization funds taking away the bloody chips from the market.

It can be seen that stabilization funds can play a very important role as a market vane and will become an extremely critical reference indicator for investors in the market to judge market trends.

With such a stabilization fund, there is no need to worry about investors buying up the NSE 50 Index without thinking.

Finally, Tian Jiayi said with some doubts: "I don't quite understand why you don't want to launch more indexes and corresponding ETFs? Even if you want to establish a stabilization fund, I don't think these two things conflict."

Fang Hong glanced at the beautiful assistant and said unhurriedly: "The top side supports the SGX. The price here has risen and it has been a long time. As a result, investors have come to this place to play. Over time, the main board next door gradually gradually Losing the ability to raise funds, don’t forget that a large amount of investment in Guo Jia’s listed companies is on the main board. These are all his sons. Those people can cut them off, but they cannot affect their sons. They are two different things and cannot be summed up. "

"I won't let SGX launch more indices and ETFs. So many public and private equity institutions will issue hybrid fund products. They also have to complete some task indicators. The investment portfolios of these funds are heavily invested in SGX listings. The targets will also be mixed with some listed targets on the main board, indirectly diverting part of the funds to provide financing and refinancing capabilities for the listed companies on the main board."

Fang Hong is a sensible person. When the stock market was first established, it was to a large extent to bail out Guo Jia team's enterprises, so those sons of Guo Jia team cannot be ignored.

Ensuring that their financing and refinancing are not affected is one of the important prerequisites. Only then can investors come to your place to play, and only then can the SGX be allowed to siphon large-scale funds from the main board next door. Otherwise, there will definitely be problems from above. adjusted.

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