【Financial Str. Release】Publicly-offered fund firms rush to buy their own fund products to bet on long-term prospects

The photo taken on December 5, 2009 shows the sign of a Shanghai-located fund firm.

BEIJING, July 14 (Xinhua) -- Publicly-offered fund firms and asset management units and companies of securities brokers have rushed to purchase their own fund products by Wednesday this year, reported Securities Daily on Thursday.

Statistics with Wind, a financial market data provider, showed that 74 publicly-offered fund firms and asset management units or companies of 10 securities brokers bought 3.163 billion yuan of fund products issued by themselves by July 13 this year, up 34 percent year on year.

Compared with the asset management units or companies of securities brokers, publicly-offered fund firms purchased more of their own fund products. In total, they bought 2.432 billion yuan of their own fund products covering hybrid funds, stock funds, bond funds and fund of funds (FOF), with the respective buys at 800 million yuan, 636 million yuan, 515 million yuan and 340 million yuan respectively.

Asset management units or companies of securities brokers bought back 742 million yuan of their own fund products, including 460 million yuan of bond funds, 221 million yuan of hybrid funds and 40 million yuan of stock funds.

The strategy team with Huaxi Securities held that the notable rise of self-purchased fund products of publicly-offered funds in the past months of this year was not equal to a signal for suggested further buying.

But when the market decline deepens to a certain extent or lasts for a certain period of time, the ballooning self-purchases of publicly-offered funds are always one of the signs for bottom building on the financial market, according to strategists with Huaxi Securities.

Chen Mengjie, chief strategist with the research institute of Yuekai Securities told the newspaper that publicly-offered funds and asset management units or companies of securities brokers took the move primarily to forge a close bond with investors, good for them to rev up market confidence and bet on the long-term prospects of their own products. 

Among the 207 self-purchased fund products, about 155 ones have realized positive returns by Wednesday this year, accounting for 75 percent of the total. (Edited by Duan Jing with Xinhua Silk Road, duanjing@xinhua.org)