Britain Off Europe: The Entry Time Of OTC Funds Is Much Anticipated.

In recent years, we have heard news of OTC funds entering the A share market, but there is no substantive action.

At the same time, under the influence of the dispute between Britain and Europe, Vanke's equity dispute and the lifting of restrictions on the sale of shares, it seems to have caused a lot of confusion to the funds that originally planned to enter the A share market.

Once the market is formed, it will easily lead to a large number of long-term funds coming into operation.

However, after the establishment of the market bottom, under the influence of gradual repair of the market atmosphere, will the future generate a continuous money making effect, which will also affect more inflow of foreign funds.

In fact, the issue of guiding funds, especially the introduction of long-term capital into the market, has been widely discussed in the market.

It is undeniable that for the current A share market, after the vigorous and vigorous process of "deleveraging" and "de foaming", the systemic risk of the stock market has been well released, and the index position of the stock market has basically returned to the point where the bull market started.

The cumulative decline is more than 50%, or even 70%.

However, in the face of sudden drop in risk and pressure, the stock market seems to be still unable to attract large entry of off site funds, but more funds often take cautious wait-and-see attitude. What is the reason for this? In my view, for OTC funds, although there are some signs that advance funds are coming into the market, more OTC funds seem to prefer to wait for a position they consider safer.

In terms of market valuation, although there has been a drop of nearly 50% in the past year, stock valuations are quite different.

Among them, the total value of the breed headed by SSE 50 is low, even lower than that of the mature market abroad.

But on the other hand, the whole

The median of valuation is still high, while the small and medium sized board and gem are not able to achieve the requirement of "de bubble".

However, from another angle of thinking, after the frequent launch of the "national team" funds, the national team funds have reached or reached a high level of control over some of the weighted stocks, especially the super weight stocks.

As a result, under the influence of the low circulation of such stocks, the downside space of these stocks has been reduced to some extent.

Similarly, the market share of such shares is higher than that of the market share, which also limits the market's sharp downward trend.

However, at this stage, if the national team's funds do not take this approach, or it is still difficult to get rid of the risk of big fluctuations in the market, and under the influence of the market stall down again, or will trigger the stock pledge of listed companies again.

。

Obviously, under such a background, the frequent launch of the national team indirectly strengthened the color of administrative intervention in the stock market, and the market reform of the stock market also slowed down.

At this point, for more money, perhaps more willing to wait for the bottom of the market after the policy.

Perhaps, after the emergence of the real market bottom, it is time for them to feel safer.

Sometimes the distance between the bottom of policy and the bottom of the market will not be great, but the period of bottoming shock will be quite long.

For the market, there is less than 10% space between the bottom of the policy and the bottom of the market, but between the bottom of the policy and the bottom of the market, the consolidation time of the market will last for several months or even several years.

"Time for space" to complete the construction of the A share market, which may be a general view of off site funds.

However, for more funds, it is hoped that in a short period of time, the market will "dig holes" to complete the establishment of the bottom of the market.

However, in the face of the uncertain market environment, more funds are willing to be cautious and wait patiently for this opportunity to come.

"Small and medium-sized enterprises, less financing channels", "more private funds, less investment channels", this is the real portrayal of the current domestic market.

However, for the A share market, what is often lacking is not capital, but lack of market confidence in investment.

Thus, for the OTC capital, once the market bottom is formed, it will easily lead to a large number of long-term funds coming into operation.

However, after the establishment of the market bottom, under the influence of the gradual restoration of the market atmosphere, will the future generate a continuous moneymaking effect, which will directly affect the degree of repair of the confidence of the stock market, and even affect the inflow of more OTC capital.