Foreign Exchange Lines Of Several Fund Companies Are Announced To Be Exhausted

After the Federal Reserve announced an interest rate increase of 25 basis points, the boots that had been hanging for a long time finally landed. The opening of interest rate increase space means that the US dollar has entered into appreciation, the pressure of RMB devaluation has increased, and the demand for overseas allocation of domestic funds has become increasingly strong.

　　 Special accounts of institutions are customized as the main force

Although the income of QDII is difficult to compare with that of partial equity funds this year, when the demand for domestic funds to go overseas surges, QDII has shown no small enthusiasm for subscription.

At the same time, the foreign exchange quota that was often idle in the hands of fund companies has become increasingly tight. According to the reporter of the Daily Economic News, some fund companies have used up their foreign exchange quota, and only a few companies have sufficient quota.

"Our company's foreign exchange quota ran out in the first half of the year, and some products have been suspended from large purchases," said the head of international business of a fund company.

People from the international business department of a fund company in South China also privately said that the foreign exchange quota of a general fund company is generally between 500 million and 1 billion dollars, and the foreign exchange quota of its company is less than 1 billion dollars, which is basically used up in the fourth quarter.

The relevant person of a fund company in Shanghai clearly said that, because the company has sold new QDII products, the current quota is not much, although there is a surplus.

Many fund insiders said that SAFE suspended the approval of foreign exchange quota after March, mainly because the quota authorized by the State Council to SAFE had been approved at that time, and it still needed to apply for approval later. With the increasing demand for overseas asset allocation, fund companies naturally have fewer and fewer foreign exchange lines in their hands. It is estimated that there are few companies with sufficient lines in the industry.

According to statistics, at present, more than 10 QDIIs, such as Huaxia Overseas Income Bonds and Bosch Greater China Asia Pacific Select, have been restricted from large purchase.

QDII is so hot that it is inseparable from institutions.

"QDII's current demand mainly comes from high net worth customers and institutions. In terms of the amount of funds, the demand for institutional funds is also different. There are tens of millions, hundreds of millions or even 1 billion yuan. ”The said person in charge of international business.

Zhang Xi, the general manager of the product development department of Huabao Industrial Fund, said that the international crude oil price has fallen sharply recently, and customers' enthusiasm for purchasing the lowest oil price through subscription or purchase of Huabao oil and gas has increased. The market continues to trade at a premium, and the fund scale has grown significantly. Both on and off the market, customer participation was quite active.

The aforementioned people from the International Business Department of a fund company in South China also pointed out that the demand of its QDII began to grow in the second half of the year, and the demand of institutions grew rapidly in the form of customized accounts, especially some financial institutions.

"Recently, there have been a lot of QDII subscriptions. Since August, the number of subscriptions has increased significantly, especially for institutions. ”The above Shanghai Fund Company said.

　　 US stocks Still the focus

The first interest rate increase in the United States in nearly 10 years has changed its market environment of nearly zero interest rate for seven years. For investors with overseas asset allocation needs, where is the ideal place to invest in offshore assets?

The aforementioned Shanghai based fund related person said that in the future, the company's products will still focus on the US stock and bond market, especially the overseas bonds of Chinese enterprises.

Zhang Xi also believes that in the allocation of global markets, priority should be given to the US stock market, which has a relatively strong economy. The interest rate increase of the Federal Reserve will also support the value of the US dollar. If the interest rate increase process is slow rather than radical, the impact on the stock market will be limited. In addition, Chinese shares listed in Hong Kong can also be considered. Investors are relatively familiar with them, with low valuation and a higher margin of safety than A-shares.

"The Federal Reserve has raised interest rates, and the risk-free interest rate in the United States has risen. In the future, it is considered to allocate some scarce equity targets. Financial stocks, such as bank stocks, also have certain allocation value, and the fixed income category tends to US dollar bonds." said the aforementioned person from a fund company in South China.

Relevant personnel of HFT also said that under the background of relatively strong US dollar and relatively considerable yield of US dollar bonds issued by domestic enterprises, investors with medium and low risk preference can allocate QDII funds that mainly invest in US dollar bonds issued by Chinese companies overseas for a long time, and it is expected that the yield of QDII funds will not be lower than that of domestic bond funds.

In addition, some fund companies pointed out that in history, interest rate hikes in the US dollar would cause capital outflows in emerging markets, leading to further shocks in their markets. Since the third quarter, many emerging markets have declined, and they are relatively cautious about next year. The supply of commodity crude oil far exceeds the demand, and commodity prices are not optimistic. However, the price of oil has dropped by more than 60% this year, and there may be trading investment opportunities. High yield bonds performed well in the past, but they also fluctuated after the Federal Reserve raised interest rates.

　　 Stable income assets are the hottest

It is worth noting that institutions are more interested in fixed income assets.

The relevant personnel of HFT Fund said that the QDII scale of the company has risen slightly recently, and investors prefer fixed income products with lower volatility to reduce the risk of overseas investment.

"What we did Special products It is mainly fixed income products, and its expected return rate is 2-3 percentage points higher than that of similar domestic products. The overseas market is dominated by Hong Kong, which is not only a high-yield bond, but also a lot of structured products. ”Said the aforementioned person from the International Business Department.

Zhang Xi also pointed out that investors prefer relatively familiar overseas assets, such as fixed income products issued overseas by Chinese enterprises, China concept stocks and American blue chips.

Relevant people of the aforementioned medium-sized fund companies said that in addition to fixed income and bond products, the company also made unlisted REITs, real estate trust products, etc.

"Institutions initially invested in stable assets, especially bonds. We also invested in overseas stocks, IPOs and structured products with stable returns. This mainly depends on the risk preference of institutions. They pay more attention to low-risk products with an annual income of more than 5%. If the QDII income can be more than 6%, it will be very attractive to institutions. ”The head of the above international business department further explained.

According to the reporter, under the demand of institutional customers QDII It has been included in the product planning camp of several fund companies.

The aforementioned person from the international business department of a fund company in South China said that the company has a comprehensive range of stocks, bonds, etc. in terms of QDII categories; If permitted by regulation, hedging and balanced products, especially hedging absolute income products, will be considered.

Cathay Pacific Fund recently launched a QDII-FOF fund mainly configured with overseas absolute return public funds. Its goal is to invest in overseas funds with relatively low risk, good returns and the ability to pass through the bull and bear market.

Relevant people of the aforementioned medium-sized fund companies explained that, in the current process of global economic cycle transition, there is no obvious trend or prospect variety for all types of products in 2016, and at this time, absolute return funds are more valuable in overseas allocation needs.

Zhang Xi said that the company plans to launch the US quality consumption index fund in the first quarter of next year to track the performance of the US optional consumer sector. In addition, it plans to issue China's small and medium-sized index funds listed on the Stock Exchange to provide tools for investing in Hong Kong's Chinese stocks with small and medium-sized market capitalization outside Hang Seng state-owned enterprises, filling the gap in the market.

HFT Fund plans to take QDII bond fund as the key research and development direction in 2016, mainly investing in US dollar bonds issued overseas by Chinese companies, which can better combine the research ability of the bond research team on domestic enterprises, and the research ability of shareholders and Hong Kong subsidiaries on overseas market environment.