animalcrossingcryptocurrency| Indexed investment demand drives the expansion of the ETF market, and securities firms 'wealth management model welcomes transformation
If you want to speculate in the stock market, you can see the research report of Jin Kirin analysts.AnimalcrossingcryptocurrencyAuthoritative, professional, timely, comprehensive, to help you tap the potential theme opportunities!
Reporter Zhao Zhonghao
In recent years, the ecology of the ETF market has continued to improve, and the demand for indexed investment by residents has been further released. According to the latest fund market newsletter of the Shanghai and Shenzhen stock exchanges obtained by a reporter of the China Securities News from the industry, as of the end of March, the size of ETF in Shanghai and Shenzhen stock markets was close to 2 trillion, with a total market capitalization of more than 2. 5 trillion.Animalcrossingcryptocurrency.4 trillion yuan. From the perspective of securities firms, whether it is the holding scale of brokerage business or the market-making business that provides liquidity services, the current market pattern is relatively stable. Shen Wanhongyuan, China Galaxy, CITIC Securities and other large brokerages hold the largest scale.
In the stage of equity market shock, ETF has become an important tool for many investors to allocate equity market. Industry insiders believe that from the mature market experience, "buyer investment + ETF" has become the mainstream mode of wealth management of securities firms. ETF has the advantages of transparent investment, low rate and convenient transaction, so it plays an important role in customer asset allocation.
The holding scale of the head securities firm is in the first place.
Data show that by the end of March 2024, there were 551 ETF stocks in Shanghai, with a total market capitalization of 18159.Animalcrossingcryptocurrency0.02 million yuan, with a total share of 1.409628 trillion. According to the type, the turnover of equity ETF (including cross-border ETF) was about 1.10706 trillion yuan in March, accounting for about 54.96 per cent of Shanghai ETF turnover in that month. As for the Shenzhen stock market, as of the end of March, there were 372 ETF in the Shenzhen stock market, with a total market capitalization of 586.232 billion yuan (of which the stock ETF reached 548.924 billion yuan) and a total share of 531.46 billion shares. The total share of Shanghai and Shenzhen ETF reached 1.941088 trillion, with a total market capitalization of 2.402134 trillion yuan.
From the perspective of ETF holding scale, the head brokerage has obvious advantages, and the market pattern is relatively stable at present. As of the end of March, Shen Wanhongyuan was the largest holder of ETF in the Shanghai stock market, accounting for 20.30% of the Shanghai stock market, followed by China Galaxy with a market share of 14.45%, Citic Securities ranked third with a market share of 6.38%, and China Merchants Securities and Huatai Securities ranked fourth and fifth respectively.
From the Shenzhen market point of view, as of the end of March, the brokerage business holding ETF is also Shenwan Hongyuan, accounting for 16.07% of the Shenzhen market, followed by China Galaxy, with 8.55% of the market, and Guotai Junan market with 7.36%. Guangfa Securities and Citic Securities ranked fourth and fifth respectively.
In addition, there are 537 ETF with market makers in Shanghai, accounting for 97.46% of all ETF in Shanghai, and 364 ETF with market makers in Shenzhen, accounting for 97.85% of all ETF in Shenzhen.
Accelerate the improvement of the business model to the buyer
In 2023, the A-share market was volatile and divided, and the issuance of equity funds was not as expected, while the ETF market showed explosive growth, with a scale of more than 2 trillion shares at the end of 2023. At the same time, with the further exploration of wealth management business, ETF has become an important starting point, driving the fund consignment business to achieve a major breakthrough, promoting securities firms to accelerate the promotion of the business model to buyers.
"at present, domestic ETF product types have been covered.AnimalcrossingcryptocurrencyThere are many types of assets, in addition to the traditional broad-based, industry, currency and other ETF, all kinds of cross-border and commodity ETF have also been innovated in recent years to meet the diversified allocation needs of customers. ETF has become an important part of customers' cross-variety and cross-regional asset allocation. " The head of the wealth management department of a brokerage in East China told reporters that from the mature market experience, "buyer investment + ETF" has become the mainstream mode of wealth management of securities firms. ETF has the advantages of transparent investment, low rate and convenient transaction, so it plays an important role in customer asset allocation. The rapid development of US ETF is inseparable from the promotion of investment. In the past decade, the proportion of US investment advisers allocated ETF has increased significantly, from less than 10 per cent to about 40 per cent.
Judging from the current situation of domestic development, the person in charge of the brokerage line of another securities firm said that investing as a buyer can help investors understand the risk-return characteristics of different ETF products, guide investors to form rational investment ideas and habits, and help expand the investor base of the ETF market. Secondly, buyer patronage can provide personalized ETF product configuration solutions according to the specific conditions of investors, through the allocation of cross-border, gold and other low-correlation asset classes, to reduce investor account volatility and enhance investment experience; finally, the development of buyer patronage will in turn promote the innovation of ETF products, including new strategies, new assets and new markets, and further enrich the ETF product line.
From the 2023 annual report, many securities firms continue to focus on products and customer demand, accelerate the ETF layout, continue to improve the asset allocation system, and strive to achieve the transformation from product sales model to asset allocation model.
ETF market making has become a key link in the service of securities firms.
"whether the scale of ETF is large or not, it is all seen as market makers," some investors said bluntly. As the trend of indexed investment becomes clear gradually, ETF market-making has become a key part of brokerage services, and shows a highly centralized trend.
According to industry insiders, ETF market-making business provides liquidity, obtains public offering funds to provide commissions or convertible securities sources, while the exchange regularly evaluates and subsidizes market makers. In addition, it also increases considerable stock-based trading volume and public placement ranking for securities firms, which is highly valued by securities firms.
"when investors choose specific trading targets after selecting interested investment areas, the liquidity level of ETF or its most important indicator, because liquidity has a great impact on the friction costs when investors get in and out of capital. Therefore, the liquidity level is one of the core factors that determine the competitiveness of ETF products. " The person in charge of ETF market-making business of Huatai Securities said that securities firms, as market makers of ETF products, continue to hang orders bilaterally in accordance with the rules, providing investors with stable and continuous counterparty orders in intraday trading. Especially when the trading price deviates from the intraday real-time net value by a large margin, the market maker stabilizes the abnormal jump of the price, which makes the opening price of the ETF secondary market fluctuate steadily around the real-time net value of the product and reduce the transaction friction. under such conditions, investors can more accurately obtain the investment return of the underlying ETF corresponding index.
Judging from the situation of its own exhibition industry, the above-mentioned person in charge of Huatai Securities introduced that since the launch of the ETF market-making business, Huatai Securities has actively promoted the full linkage of the ETF market-making business with other business lines of the company while continuously polishing and improving its investment and trading capabilities. Make liquidity services an important part of the company's comprehensive promotion of the construction of the ETF ecosystem.
"As the market environment continues to change, market makers must strive not only to reduce investor transaction costs, but also to reduce the various costs of the market-making business itself and improve revenue to reflect the principles of market economy." The above-mentioned person in charge of Huatai Securities said.
