With the disclosure of the first-quarter reports, every move of the top institution in the mainland market, Central Huijin, has been publicly disclosed.
According to the fund first-quarter report data disclosed as of April 22, Huijin held at least 480 billion yuan worth of various stock ETF funds at the end of the first quarter.
This does not include the holding situation of some small-cap ETFs with less disclosed information in the early stage (these small-cap ETFs also have super-institution holding records similar to large-cap ETFs). Nor does it include some super-institution holding records that cannot be verified on the holding lists of some large-cap funds.
Therefore, it is highly likely that by the end of the first quarter of 2024, the market value of Huijin's holdings has reached a record level of 500 billion yuan.
This has become the largest institutional investment fund record in the history of mainland funds to date.
In early February this year, Huijin announced on its official website: it has recently expanded the range of exchange-traded funds (ETFs) and will continue to increase the scale of holdings and expand the scale of holdings, resolutely maintaining the stable operation of the capital market.
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Looking back now, the announcement is as loud as a gong.
In the first quarter, Huijin "bought a lot" of ETFs, with a bottom-up amount of 340 billion yuan.
Strictly speaking, the fund's first-quarter report did not directly disclose Huijin's holding shares and market value. However, according to the verification of the latest released quarterly report information, Huijin's accounts have increased a large number of ETF shares.Based on the aforementioned criteria, Central Huijin significantly increased its holdings in a multitude of Shanghai-Shenzhen 300 ETFs, Shanghai 50 ETFs, and other stock index ETFs by the end of the first quarter.
Looking at the verified investment records, Huijin has at least increased its ETF holdings by over 340 billion yuan during the first quarter (calculated based on the net value at the end of the quarter, which differs from the actual cost).
Aggressive Purchase of Mainstream Broad-Based Funds
Examining the specific investment directions, Central Huijin's increased holdings are more concentrated in large and medium-sized ETFs with leading basic scales and high trading volumes.
According to the aforementioned statistical criteria, within the first quarter, the ETF with the most significant increase in holdings by Central Huijin is likely the Huatai-Pine沪深300 ETF, with an increase of over 93 billion yuan.
The second is the Yifangda沪深300 ETF, with an increase of nearly 80 billion yuan, and the third is the Huaxia沪深300 ETF, with an increase of over 61.5 billion yuan.
However, when comparing the growth rate of the scale, the Yifangda沪深300 ETF has the highest share growth rate, with Huijin's holding scale at the end of the first quarter increasing by 769% compared to the beginning of the year.
Is the Selection of Funds More Focused on Influence, Scale, and Cost?
So, what exactly is Central Huijin's approach to fund selection?
A preliminary observation of its increased investment direction shows that the funds that are "hotly bought" mostly have the following characteristics:The index has strong representativeness and high market attention. It is not surprising that the four most watched CSI 300 ETFs in the industry have all been significantly increased in holdings.
The existing scale is large, and liquidity is good. The largest CSI 300 ETF, SSE 50 ETF, and CSI 500 ETF in the industry have all been listed by Central Huijin as key targets for increase (as seen from the scale of increase).
Low cost, good market impact, and high efficiency in buying. Central Huijin's choice to increase holdings in ETF varieties clearly took into account their lower establishment costs, and the proportion of increase in some low-fee ETFs is particularly prominent, which may reflect the characteristics of relevant institutions "focusing on cost" and emphasizing the cost-effectiveness of buying.
Will the subsequent increase in the number of Central Huijin's ETF holdings continue to increase?
The answer is likely to be affirmative.
Firstly, from the first-quarter fund reports, similar super-institutional holding records as mentioned earlier also appeared in some fund holding information.
For example, the E Fund K-创 50 ETF, which has a lower fee rate, saw a super-institution increase its holdings by about 11.8 billion shares in the first quarter, with an increase in market value of nearly 10 billion yuan calculated at the end of the quarter's net value.
Looking at the specific trend, on February 6, this ETF did indeed show a strong upward momentum.
However, the exact identity of such institutions can only be verified later.Similarly, some large-cap ETFs have seen super-holder accounts enter the list of significant holders for the first time this year, and the identity of these institutions also requires time to verify.
Mainly one-way buying or holding still
Additionally, looking at the operational actions of the funds held by Central Huijin Investment Ltd. (CHIL), it is mainly one-way buying and long-term holding, with a very clear positive attitude towards the stock market.
Several large-cap ETFs that have disclosed important holding information so far have all received continuous buying (subscriptions) from CHIL in the first quarter, with no records of redemption (sales).
Furthermore, some industry-specific or single-market ETF varieties, although not favored by CHIL's buying in the first quarter, have historically held a substantial scale (as shown in the figure below, the E Fund Shenzhen 100 ETF quarterly report).
The changes in the holding market value of these ETFs by CHIL are very much worth tracking in the future.
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