The epidemic spread and global stock markets plummeted. Us stocks have been cut four times in succession, and European markets have frequently fallen by more than 7% in a single day. The prices of assets such as crude oil have also plummeted, and panic has enveloped the capital markets.
The market slump has led to "smart" capital bottoming out. Due to the large number of bottom hunters and limited quotas, qualified domestic Institutional Investor (QDII) funds have announced restrictions on large applications or suspensions, and some banks with accounts for crude oil trading have also suspended some long trading.
Overseas ETF share soars
Data show that as of March 20, the US Dow Jones Industrial average, NASDAQ and S & P 500 have fallen 32.81%, 23.33% and 28.66% so far this year; European stocks, FTSE 100, France's CAC40 and Germany's DAX have all fallen more than 32%; and Asia-Pacific stocks, Nikkei 225, Korea Composite and FTSE Singapore ST1 fell 30.03%, 28.74% and 25.2% over the same period.
The sharp decline in overseas markets has led to the rapid release of risks, and a lot of money has begun to bottom out. The increase or decrease in the share of ETF shows this trend. Data show that as of March 20, 11 QDII-ETF included in the statistics have shown share growth since the beginning of March, with an average increase of more than 600 million copies. Among them, the share of Hua'an Germany 30 (DAX) ETF, which specializes in the German market, has increased by 1 billion shares since the beginning of this month, to 1.506 billion shares on March 20, an increase of 1.0995 billion shares, or 270%, compared with March February, and its growth is particularly rapid after March 17.
The 225ETF share of Huaxia Nomura Nikkei, which distributes the Japanese market, has also increased significantly, with an increase of 289 million shares, or 484%, since March, while the 225ETF share of Huaan-Mitsubishi Nikkei has increased by 121.29%. In addition, Yifangda Nikkei Capital Management Nikkei 225ETF and Southern East Stock Exchange Index ETF share also increased significantly.
The share of some ETF with the main layout of US stocks, such as Yifangda overseas interconnected ETF, Guangfa NASDAQ 100ETF, Boshi S & P 500ETF, Cathay Pacific NASDAQ 100ETF, also increased. Yifang Dazhong Securities overseas interconnected ETF increased by more than 100 million, and Guangfa's ETF share increased by 153 million, with a scale change rate of 953.12%.
In addition, Yi Fangda Hang Seng H-share ETF and Huaxia Hang Seng ETF have also attracted a lot of bottom-reading funds, with share increments of 3 billion and 2.074 billion respectively since March, an increase of 40.96% and 61.19% respectively.
Emergency closure of purchase application
Products ushered in the purchase army, a number of fund companies issued its QDII fund "purchase restrictions" announcement, the main reason is that investors rush to raise the QDII quota is urgent.
According to statistics, since March, about 41 QDII funds have announced the suspension of purchase or large purchase, most of which are due to foreign exchange quota restrictions, and there are also reasons to ensure the smooth operation of the fund and protect the interests of fund share holders, and a few are due to suspension caused by overseas holidays.
Many of the "restricted" QDII are oil and gas-themed funds, such as Huaan S&P Global Inc. Oil, which has restricted large purchases of more than 10,000 yuan since March 20; Castrol crude Oil, Southern crude Oil, etc., have also suspended applications, while Yifangda crude Oil has restricted purchases of more than 500 yuan a day in a single account.
A number of funds under some fund companies have announced purchase restrictions, such as Yifang Da S & P Healthcare, Yi Fonda S & P consumer goods, Yi Fang Da S & P 500 and other products or restrict large purchases. Guangfa Fund's Guangfa Global Healthcare, Guangfa NASDAQ Biotechnology, Guangfa US Real Estate and other products are "restricted". In addition, the South, Hua'an and other fund companies under a number of QDII collective restrictions or restrictions on large-scale purchase.
The "purchase restrictions" of QDII products have led to the transfer of funds that failed to enter the market to the secondary market, resulting in a premium for some QDII funds in the secondary market. Guotai refers to ETF, Boshi S & P 500s, Yi Fangda Interconnection, Guangfa ETF, Nikkei ETF, 225ETF and other products at a premium, with some funds with a premium rate of more than 10 per cent.
"recently, many investors have applied for purchases, and the demand trend is obvious. But the fund company QDII quota is limited, also issued the suspension purchase announcement. An industry insider said that if overseas markets continue to fluctuate, more funds intended to be laid out may pour into other QDII funds that are not restricted for the time being.
