On October 15, 2024, Mr. Hao Zichong, the founder and executive director of Shenzhen Qianhai Suijing Asset Management Company, went into the classroom of the Economics of Money and Financial Markets of Business School to have an in-depth communication with the 2023 cohort Financial Management students on the logic and successful investment strategy of China's stock market.
Since reaching the historical high of 6124 points in 2007, China's stock market has been fluctuating above and below 3000 points for a long period of time since 2009, and the “perpetual battle of defending 3000 points” has become a joke among practitioners. Director Hao starts from the simplified stock market principle that total market capitalization is equal to total stocks multiplied by the average price, and divides the growth of stock market capitalization into two basic logics: equity growth and price growth. And by comparing the IPO and issuance data of A-share and U.S. stock market in recent years, he reveals the difference of the underlying logic between A-share and U.S. stock market. Since 2009, the total market growth rate of A-share and U.S. stock market is close to each other, and the data of IPO and issuance are extremely close to each other, but while U.S. stock market maintains the number of listed companies basically stable, the number of listed companies in A-share market has increased by nearly two times. The main reason for this is that while the U.S. stock market is replenishing fresh blood, there are a large number of unqualified companies buying back shares or delisting, thus realizing a steady increase in the overall price while maintaining a stable equity size. A-shares, on the other hand, have expanded their total market capitalization mainly by increasing their share capital on the basis of a basically unchanged price, thus explaining the puzzling 3000-point mystery.
Based on the above theory, Mr. Hao further summarized 4 investment strategies that have been proven to be effective in benefiting from the increase in equity before the “Nine New National Rules”, which are the strategy of hitting new stocks, the strategy of directionalissuance, the strategy of small market value and the strategy of convertible bonds. Mr. Hao also had an in-depth exchange with students on his personal investment experience and insights.
Mr. Hao graduated from Jilin University with a Bachelor's degree in Computer Science and a Master's degree in Quantitative Economics, and has 17 years of experience in financial industry, having worked in the Data Analysis Team of China Merchants Bank Head Office, the Sales and Trading Department and the Wealth Management Department of Huatai Securities, among other organizations. He has strong data analysis skills and the ability to flexibly utilize complex financial instruments, and has always focused on finding low-risk medium-high yield investment opportunities. Representative product ZTG High Vision Private Securities Investment Fund (SGE525), long stock strategy, with convertible bonds as the main investment underlying.
Text, photo, review by Yahui Zhang
