File photo shows the financial street in Xicheng District of Beijing, China.
BEIJING, Dec. 3 (Xinhua) -- Exchange-traded funds (ETFs) tracking stocks of securities brokers attracted about 10.785 billion yuan of capital influx in term of average transaction price of different ranges since July by December 1, 2021, reported Chinafund.com on Friday.
Since July 2020 when securities broker stocks generally surged, there has been more than a year for fluctuations to shadow the sector whose valuation stayed generally at historical lows and turns gradually attractive for portfolio investors.
As a matter of fact, securities broker stocks remained lukewarm and CSI All Share Investment Banking & Brokerage Index merely inched up one percent since July by Wednesday, with prices of nearly 70 percent or 34 of the 49 securities broker constituents of the index declined.
Despite the sector's unoptimistic performance, hefty fund flows into ETFs tracking securities broker stocks helped expand the size of these ETFs in the second half of 2021 by December 1.
From July, 10 of the 12 securities broker ETFs saw their size growing by different degrees. For instance, shares of Tianhong CSI All Share Investment Banking & Brokerage Index Fund ballooned 667.19 percent by Wednesday.
Hu Jie, a fund manager with Hwabao WP Fund Management Co., Ltd., said that generally, performance of securities broker stocks in the past 2021 are in sharp contrast to securities firms' financial results released in the first three quarters and last two years.
By far, securities broker stocks present relatively high investment value in light of the solid business performances of securities brokers and favorable policies and market trading sentiment, noted Hu.
Moreover, turnover on Shanghai Stock Exchange and Shenzhen Stock Exchange remained at high levels and improved significantly from the comparable period of 2020, indicating possibility of further upticks for prices of securities broker stocks especially given the relatively low performance data of securities firms in the fourth quarter of 2020.
By the end of September, 2021, market capitalization of securities broker stocks held by stock funds, hybrid funds with relatively large proportion of equity investments and funds with flexible investment strategy valued 47.4 billion yuan, accounting for 1.78 percent of the market cap of all stocks of which these funds held heavy positions.
In future, the overall proportion of stocks of securities firms with competitive investment banking business held by publicly-offered funds may continue to improve alongside the advancement of the registration-based initial public offering reform in China, said market watchers. (Edited by Duan Jing with Xinhua Silk Road, duanjing@xinhua.org)
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