Chapter 1578 [Leveraged funds make a comeback]

Soon after the market closed, the A-share market surged today and directly hit the Internet's major hot search lists, and it was either ranked first or ranked in the top three hot search lists, which shows how hot the market is.

At the 7 o'clock news broadcast in the evening, it took more than 1 minute to report the surge in the A-share market.

Chinese people know that there is a convention that if there is a major event in the country or in the lives of the people or in the world, then the 7 o'clock news broadcast on the same day will often focus on it.

Today's stock market transactions are so hot that many brokerage apps have even crashed. According to securities sources, since entering July, A-shares have risen for four consecutive days in July, which has also caused the number of accounts to soar sharply.

For a while, the keyword "bull market" became one of the most popular search terms on the entire network, and everyone was showing off their earnings.

Today, the absolute market value of the three major A-share trading markets increased by 8.89 trillion yuan. According to the current 160 million stockholders in the A-share market, the average profit per person is 55,000 yuan. Those who did not make so much money today did not even beat the average number.

Among them, the absolute market value of the SGX market increased by 5.49 trillion yuan today, and the total market value of the SGX market also soared to a new high of 82.93 trillion yuan. As early as July 1, the SGX 50 Index had its first big positive line with a gap and a high opening, and its annual line had turned from green to red.

The annual line has been five consecutive positive lines, which is the first time in the history of A-shares that the annual line has been five consecutive positive lines, and it has also set a record for the number of consecutive positive lines.

The SGX 50 Index has historically stood above the 7,000-point mark today. The annual line has turned from a sharp drop of more than -22% in March to a rise of +12.76% now, and has set a cumulative increase of +34.84% since the lowest point of the year.

Looking back now, the 50-stock index fell to more than 5,200 points in March, which is a rare golden pit bottom in history. Those who bought the bottom are all happy now, and those who sold at this position are very regretful.

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"I really didn't expect that today's A-share market could create a transaction volume of 3.13 trillion. Everyone in the internal investment research and analysis department of Qunxing was shocked." At this time, Tian Jiayi was talking to Fang Hong. She was obviously surprised by the hot A-share market today.

The total transaction volume for the whole day was 3.13 trillion, which is real money. Even the epic leverage bulls in 2015 would be ashamed of it.

At this time, Fang Hong was browsing the documents of the third phase of the Wealth Fund. Hearing what the beautiful assistant said, he said without raising his head: "It is the result of the resonance of the right time, right place and right people. However, a lot of leveraged funds must have entered today. If it is not controlled, a large amount will enter later."

Speaking of this, Fang Hong pondered for a while, then turned his head to look at Tian Jiayi and ordered: "Again, it doesn't matter how much money comes, you can control the situation, but you must not use leveraged funds."

Following Fang Hong for so many years, Tian Jiayi immediately understood what he meant when he heard this, and nodded immediately and said: "I understand what you mean. Tomorrow I will go to the Singapore Exchange to say hello and strictly investigate leveraged funds."

Fang Hong didn't say anything, but nodded with satisfaction. This is what he meant.

Now the Singapore Exchange market has not yet adjusted the institutional T+1 and individual T+0 trading mechanisms. The daily turnover has reached a height of 1.57 trillion. It is impossible to enter the market without leveraged funds.

Capital greed and human greed will inevitably drive the emergence of leveraged funds.

But this is not what Fang Hong can tolerate. Once leverage is applied, don't expect to become patient funds. It is not a one-time thing to curb leveraged funds, but a long-term problem. Regardless of greed or not, it should be hit as soon as it appears.

Today's SGX market must not be lost. Apart from other things, the "resident savings transfer" has now been advanced to the third phase, and retail investors have entered the market through the SGX 50ETF. Stability must override everything.

The return on investment in the SGX market can already be described as amazing. Players in the market still want to leverage, what else can they do?

After a while, Fang Hong looked at the materials in his hand and said calmly: "It is just right to take advantage of this time to shock the market with leveraged funds and make a rapid correction so that the third phase of funds can enter the market."

So far, the funds of the third phase of the wealth fund have not actually entered the market, and they have just completed the fundraising.

Fang Hong did not plan to enter the market before July. The original plan was to let the SGX 50 Index hit a record high before entering the market to take over. The wealth fund is the real patient fund in the market, and it is not afraid to buy at 7,000 points.

But direct entry will definitely further promote the continued unilateral surge in the stock market. This period has raised a huge amount of funds of 3 trillion, of which 2 trillion is planned to enter the SGX market.

If you enter the market directly to chase the rise, the SGX 50 Index will definitely break through the 8,000-point mark this month, which is not good.

It is just in time to remove the leverage, let the market adjust and calm down, and at the same time, it is also a reverse pick-up for the third phase of the wealth fund.

The funds in the wealth fund are all raised from the hands of the general public, which is the so-called "resident savings transfer". These funds are truly patient funds, and there is no fear of any redemption pressure at all.

Because people are queuing up to buy this wealth management product, it was designed to be bought by the family unit only once, and after redemption, it can no longer be bought again.

Such an agreement is not dared to be played by general wealth management products, but wealth funds are played like this, because everyone knows that although this thing does not promise a guaranteed return, it is actually a steady profit.

Obviously, such an agreement is designed to prevent holders from redeeming their wealth for a lifetime, so there is naturally no pressure to redeem, and the funds entering the market by wealth funds can become the most patient funds.

Ordinary people hold this wealth management product for a lifetime and never sell it. It seems that no matter how much money they make, they can only look at it but not use it.

In fact, it is not the case, because there are banking institutions that provide profit pre-positioning tools, so that holders can also pre-position profits to spend without redeeming and cashing out.

To put it bluntly, this wealth management asset is used as the core underlying asset, which can be used as collateral for cashing out.

Banks also buy it because it is a very high-quality asset.

For example, a holder is in urgent need of 200,000 yuan in cash. He has no cash, but he holds a wealth fund product with a market value of more than 1 million yuan. Then he can take out a part of it to mortgage with the bank, for example, he can mortgage a part of the floating profit and indirectly cash out 200,000 yuan.

In this way, with 200,000 yuan in cash, the share of the wealth fund in hand remains unchanged, but he has to pay more interest to the bank for this. However, as long as the appreciation of the mortgaged assets exceeds the interest cost paid to the bank, there will be no problem.

Since the first round of fund raising started shortly after the establishment of the wealth fund, this method of playing has been popularized to the holders, so that the bank, the holder and the wealth fund are all satisfied and get what they need.

The bank earns interest and gets a share of it. If the holder does not redeem, he can put the funds in advance for consumption, so that he can only look at it but not spend it no matter how much he earns, and the wealth fund does not have to face the pressure of redemption.

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