Recently,breaking news the "2023 China Star Fund and Listed Company Value Twin Peaks Forum" sponsored by Securities Times was successfully held in Shenzhen. At the meeting, Wang Yanjie, general manager of SDIC UBS Fund, delivered a keynote speech entitled "Join hands to break the situation and build the future together-explore the road of high-quality development of the asset management industry".
Wang Yanjie said that as an institutional investor, high-quality listed companies that are willing to buy back shares continuously will have a strong willingness to increase their holdings and make long-term investments, which will greatly help to enhance the equity value of A shares. Enhancing investors' confidence is a long and endless road. Wang Yanjie believes that as long as there is investment, there will be results. Through continuous marginal improvement, it will contribute to the long-term and sustainable healthy development of the entire asset management market.
There are two misunderstandings in the A-share market.
Wang Yanjie pointed out that there are two misunderstandings in the A-share market. First, the A-share index does not rise, so investors do not make money; The other is that funds make money, while citizens don't.
"Usually, the Shanghai Stock Exchange and Shenzhen Stock Exchange are used as the criteria for market returns, but these two indexes are price indexes." Wang Yanjie believes that they do not represent the real return of investors in the market.
"The price index does not represent your return, but the total return index is the real return." For example, Wang Yanjie, the more representative total return indexes are Wandequan A and Wind partial stock fund index.
Judging from the past history, whether in the past five years, 10 years, 15 years or 20 years, the annualized performance of Wandequan A Index is good, such as the annualized rate of return of 6.3% in 5 years, 7.7% in 10 years, 8.4% in 15 years and 9% in 20 years. At the same time, the performance of the Wind partial stock fund index has already exceeded the high point in 2015. Even after a relatively large retracement this year, it is still above 2015.
Wang Yanjie believes that the A-share market is definitely a market that can bring returns to investors. On the communication level, he hopes that the market will pay more attention to the total return rather than keeping a close eye on the price index.
Regarding the phenomenon that funds make money and people don't make money, Wang Yanjie believes that this phenomenon is widespread and will continue in both the China market and the US market, but it is different in degree, which is not unique to the China market.
Wang Yanjie took Agatha Christie's Murder on the Orient Express as an example. A victim appeared in the carriage. After investigation, it was found that all the passengers were murderers.
Similarly, there are many reasons for the phenomenon that funds make money but citizens don't, and they are interlocking. For example, from the perspective of investors, chasing up and killing down is nature, which is difficult to completely avoid; From the perspective of Public Offering of Fund's industry sales model, nearly half of the financing in the industry comes from the retail market, which mainly sells through intermediaries represented by banks. The incentive mechanism and sales model of institutions can also affect the ultimate profit of investors to some extent.
Listed companies need to provide more fertile soil.
Wang Yanjie also expressed his views on how listed companies can provide more fertile soil for investors to get more benefits from it.
From the perspective of the income source of the stock market, he analyzed the basic framework of macroeconomic growth and market factors.
He believes that whether the growth of macro-economy is positively related to the rise and fall of the stock market is a proposition worth pondering. Because it is a complicated process for macroeconomics to be implemented in the stock market return. How much macroeconomic growth will benefit enterprises? And how much will corporate profits benefit listed companies? These may be the factors that cause the difference.
In addition, in terms of market factors, liquidity and investor confidence will affect the real stock market return.
If we discuss it further, China, as the second largest economy in the world, is basically not much different from the United States in terms of market valuation changes and listing structure composition; In terms of macroeconomic growth, China is undoubtedly superior to the United States. China's stock market return performance in the past is not as good as that of the United States, and he believes that the main reason is the difference in shareholders' equity income.
The reason why the return on shareholders' equity in the A-share market is not ideal is that the primary reason is the issuance of a large number of listed companies, followed by a certain proportion of corporate governance problems in A-share listed companies. If the return on shareholders' equity in the A-share market can be changed, Wang Yanjie thinks it will be of great help to the return of the A-share market as a whole.
From the perspective of listed companies, Wang Yanjie pointed out that he hopes to see more moderate listed companies issuing additional shares, even more repurchases as in the US market. As institutional investors, high-quality listed companies that are willing to buy back shares continuously will have a strong willingness to increase their holdings and make long-term investments, which will greatly enhance the equity value.
Strive to bring a better holding experience to investors.
In the past year or two, Public Offering of Fund industries have been discussing how to improve the customer experience.
Public Offering of Fund industry sells not only a product, but a whole experience and sense of gain. In the overall experience and sense of gain, a considerable proportion comes from the return that investors can really get. In addition to the return, Wang Yanjie believes that there are several aspects that are the direction of efforts.
First, in terms of investment management, we need a clearer commitment to investors. This commitment comes from a clear investment style and how to keep the investment strategy stable.
Second, the balance between the management scale and performance of fund managers. Investment is marginal, and not all good combinations can be replicated in the same proportion. In fact, every fund manager has the margin and limit of his management ability, which we must pay attention to in management.
Third, pay attention to risk-adjusted returns. Behind the extremely good performance, it actually bears a very high active risk, which actually implies a potential big retracement in the future.
Fourth, in terms of sales and customer companionship, we are also trying to provide more support for investors' confidence. Because most investors don't know the market so well, how can we strengthen our long-term confidence after investors buy funds and see the market fluctuate greatly, and how can we help investors really earn market benefits?
In short, for the assessment of fund managers, how to achieve long-term, do not encourage extreme performance, how to assess risk-adjusted returns, etc., will be of great help to investors' experience. How to provide a better investment plan so that investors are willing to spend the fluctuation of this market together. In the down cycle stage, whether it is investor education or providing investment services, we should work harder to implement it.
Enhancing investors' confidence is a long and endless road. Wang Yanjie believes that as long as there is investment, there will be results. Through continuous marginal improvement, it will contribute to the long-term and sustainable healthy development of the entire asset management market.
Maintain a relatively optimistic attitude towards A shares in 2024.
The performance of the A-share market this year is less than expected, mainly because investors are optimistic about the arrival of the bottom of the market. However, China's economy is very large, and the market structure has become diversified, so it is no longer like in the past. Once the strength of the policy comes out, the stock market can react immediately, and the transmission mechanism will become longer. At the same time, the external environment facing the market is also a relatively new challenge since the reform and opening up in the past, and the complexity of the problem is higher than before.
Standing at the current time node, Wang Yanjie believes that it is close to the bottom of the policy to the macro bottom and then to the bottom of the market. He is relatively optimistic about the return on investment in 2024.
At the bottom of the policy, starting from the middle of this year, policies such as tax reduction and fee reduction, real estate policy optimization, debt risk prevention, and several directions mentioned in the financial work conference are very helpful to restore market confidence. On the other hand, from the past few months, the whole macro-economy, whether it is consumption or industrial output, social financing and credit, has been improved, so the stage of policy transmission to the macro-bottom has been completed.
Now, the final stage is how to restore market confidence. This year's market returns are not as good as expected. In fact, to some extent, it also comes from the turmoil in real estate, which has brought negative effects on the wealth of the whole residents.
With the emergence of policy bottom and macro bottom, the recovery of the stock market will reverse the whole wealth effect into a positive cycle.