Chapter 1641 [We can no longer let those financial rentiers suck blood from the SGX]
The two indexes, NSE 500 and NSE 1000, are calculated through weighted average calculations. Specifically, there are four points.
The first is to select samples. The calculation method is based on a basket of stocks. The selection of sample stocks is based on multiple factors, including market value, liquidity and industry distribution.
The second is float market capitalization weighting. The weighted average method used by these two indexes is float market capitalization weighting, that is, the weight of each stock is the product of its number of outstanding shares and the stock price. Larger companies account for a larger proportion in the index.
The second is to adjust the weight of stocks. Due to fluctuations in stock prices and changes in corporate market value, the two indexes need to be adjusted regularly, and adjustments are made once every quarter.
The fourth is the sum of returns. The calculation of the two indexes is based on the rate of return, that is, taking into account changes in stock prices and dividend payments, by adding up the returns of each stock, the return of the entire index is obtained.
With the launch of these three indices, the SGX market will also further improve the market capitalization supporting mechanism.
By then, there will be the SGX Composite Index, which represents the entire SGX market, the SGX 50 Index, which represents the super large-cap stocks of the SGX market, the SGX 500 Index, which represents the mid- and large-cap stocks of the SGX market, and the SGX
Market small cap NSE 1000 index.
The definitions and distinctions of super-cap stocks, large-cap stocks, mid-cap stocks and small-cap stocks in the SGX market are mainly based on circulating market capitalization, rather than total market capitalization or total share capital.
Stocks with a circulating market value of more than 200 billion are considered super large-cap stocks. The circulating market value is 200 billion, and the total market value often exceeds 500 billion. They are properly regarded as super large-cap stocks.
Then, stocks with a circulating market value of more than 500 and less than 100 billion are regarded as large-cap stocks, stocks with a circulating market value of 10 billion to 50 billion are regarded as mid-cap stocks, and stocks with a circulating market value of less than 10 billion are regarded as small-cap stocks.
The 500 constituent stocks in the NSE 500 Index have a circulating market value of more than 10 billion and less than 200 billion. It is an index that combines large-cap stocks and mid-cap stocks, because there is no need to add the entire large-cap stock index. If they are separated,
Neither is enough.
The 1,000 constituent stocks in the NSE 1000 Index are all stocks with a circulating market capitalization of less than RMB 10 billion.
On this basis, the SGX market will also launch a large number of ETFs, including ETFs corresponding to three new indexes, namely the SGX Composite Index ETF, the SGX 500 ETF, and the SGX 1000 ETF.
After these three new ETF varieties are launched, funds will no longer have to be crowded in the SGX 50 ETF and the 50 super large-cap stocks. At that time, they will inevitably be diverted to large-cap stocks, mid-cap stocks and small-cap stocks in the SGX market.
stocks provide more liquidity support.
In addition to the corresponding ETFs for the four major stock indexes, more industry ETFs must be launched, and the holding stocks can only be stocks on the SGX market, not stocks on the two neighboring cities, even if the stock is an industry leader.
, but it cannot be selected if it is not listed on the SGX.
At this meeting, 10 industry ETF varieties have been confirmed to be launched, namely chip ETF, medical ETF, pharmaceutical ETF, Internet ETF, media ETF, new energy vehicle ETF, photovoltaic ETF, software ETF, game ETF, and artificial intelligence
ETF.
Judging from these 10 major ETF varieties, the biggest features are technology industries, sunrise industries, wine ETFs, consumer ETFs, securities ETFs and the like are not available in the SGX market because companies in these industries cannot be listed on the SGX.
Market listing.
More than 95% of the listed companies in this market are technology stocks. The SGX market is the concentration of technology stocks in the A-share market, and they are all rising industries. The listed companies themselves are very strong in their own industry segments.
Strong ones, even leading ones, otherwise they would not dare to list on the SGX market easily.
Because the SGX market has a strict compensation mechanism for delisting, it does not mean that you can come here to list and raise funds, and then you can withdraw from the market without any cost.
As a center for technology stocks, the industry ETFs launched are naturally related to technology.
This time's reform, the launch of three new indexes and a large number of ETFs, is not only to solve the "top-heavy" problem currently faced by the SGX market, but also to solve the problem of being indirectly sucked by the two neighboring cities.
When a large number of these ETF varieties are listed, and the holdings can only hold SGX market stocks, it will have a huge impact on those active public funds.
Because investors have more investment varieties and choices.
The current situation is that many investors want to invest in an industry. For example, some people are optimistic about the chip industry, but do not want to buy a single stock themselves, or they want to buy individual stocks but cannot reach the SGX market threshold. Such investors very much hope to be able to
There is a chip ETF, and the logic of being optimistic about other industries and wanting to invest in industry ETFs is the same.
Including those who want to invest in small-cap stocks, there are currently no ETFs for small-cap stocks. When the NSE 1000 ETF is released, you can invest directly.
These ETFs are not available now, so they can only be deceived and suffer from poor information by financial rentiers.
And with these ETFs, like a magic mirror, those active funds can show their true colors. In the future, there will be a fund managed by a certain fund manager. This fund mainly allocates a portfolio of chip stocks. When the time comes, investors will look at the chip ETFs.
It rose by 50%, but this fund only rose by 10% or even lower during the same period, seriously underperforming the industry ETFs, so the fundamentalists must have broken their defense at first glance.
After breaking through the defense, I will definitely redeem the fund angrily, and then buy ETFs myself. I can’t buy on-exchange ETFs without opening an account, and I will also buy over-the-counter ETF connections. I will never touch any other active funds again, and I will never touch any other active funds again.
I won't trust those fund managers.
This chapter is not over yet, please click on the next page to continue reading! Now it is because the SGX market has not launched corresponding industry ETFs, so many investors have no reference. Coupled with the disadvantage of poor information, they do not know what they bought.
Is it because the fund market is really not doing well, or the fund manager is too poor, or is he taking advantage of it secretly?
But in the future, with the launch of the NSE Composite Index, the NSE 500 and the NSE 1000 Index, and the launch of a large number of ETFs, the status quo will surely undergo huge changes.
Fang Hong didn't want these financial rentiers to be too ruthless and too comfortable. Thinking about it, he had harvested 3.13 trillion US dollars of wealth outside, fought with the Squid Group in various ways, and returned the money to distribute 5
More than one trillion yuan has entered the SGX market, driving up the stock market, but this group of people has been indirectly reaping the benefits. It’s unpleasant to think about.
In the two cities next door, the Shanghai Stock Exchange Index can still reach over 3,400 points, and the Shenzhen Component Index can reach over 14,000 points. This is largely due to the hybrid funds run by these institutions. They allocate part of the stocks in the SGX market.
After making a profit, you can cash out and then go back to the next two cities to buy junk stocks at high prices. Instead of benefiting the citizens, or just giving them a little rubbish, more than 90% of them will be harvested by financial rentiers.
Fang Hong asked Qunxing Group to invest 5 trillion yuan to enter the SGX market to do long positions. Those people took the opportunity to cash out. Some of the 5 trillion yuan must have taken their orders, which is why they can indirectly attract new exchanges.
The blood of the market.
However, their days of comfortably sucking blood from the SGX market indirectly are not long. They will launch new indexes and a large number of industry ETFs next year, which is the beginning of the end of the good times for these people.
By then, 2021 will be the beginning of the two neighboring cities turning into a bear market, and the Shanghai Stock Exchange Index will return below 3,000 points. This is inevitable, because after the implementation of the new round of reforms in the SGX market, it will be equivalent to putting these financial rentiers in the market.
All the blood-sucking tubes on the SGX have been removed.
How can you grow taller if you can no longer absorb nutrients? You will definitely starve to death. The reaction is that the two cities next door have entered the bear market again and begun to enter the bear market stage of endless decline.
