This kind of fund quickly cool down!The peak fell 14 percentage points

2022-04-28 0 By

With the recent intensive release of various fund managers trading risk tips, in the latest week, the high premium of public REITs decreased significantly.As of the latest close, the average premium of the 11 publicly offered REITs was 37.55%, down nearly 14 percentage points from their highs a week ago, with the biggest fallback of more than 24 percentage points.A number of investment institutions and people said that under the influence of transaction risk warning, large deviation from asset end value, international politics and other factors, the price of publicly offered REITs products is gradually returning to the value center, and the market is returning to rationality.They also remind investors that they should fully understand the product characteristics and income sources of public REITs, and do a good job in investment from the perspective of value investment. They should not blindly follow the trend of trading, and avoid the large investment risks contained in short-term speculation.According to Wind data, as of February 25, 2022, the average premium rate of 11 public REITs products was 37.55%, down nearly 14 percentage points from the peak on January 15 a week ago, but the premium rate is still high.Among them, The first water REIT in Rich Country has the highest premium rate of 77.54%, ranking the first in the industry.The premium rate of Hongtu Innovation Yantian Port Storage and logistics REIT and CCB Zhongguancun Industrial Park REIT in the same period was also around 60%.But these high premium varieties, compared with the mid-February several public REITs hit the highest premium rate since the establishment of the level, have fallen more than 10 percentage points, Wells Fargo first water REIT, Boshi Merchants Shekou Industrial Park two product premium rate fell more than 20 percentage points.Referring to the recent public REITs high premium back phenomenon, Huaxia Yuexiu high speed REIT fund manager Lin Weixin said, recently, a number of public REITs products issued temporary suspension and risk tips announcement, tips due to the secondary market trading price increased product net cash flow allocation rate brought by the decline in investment risk.At present, there is an overall decline in the premium rate of public REITs products in the whole industry or normal adjustment of the market, which is also the performance of the market gradually returning to rationality.Song Xin, general manager of the Real estate Investment Department of AVIC Fund, also believes that, from the perspective of asset attributes, the intrinsic value of REITs lies in the stable cash flow of the underlying assets. At present, the strong price in the secondary market deviates from the cash situation of the underlying assets, and the product price gradually returns to the value center, which will lead to the price fall in the secondary market.Second, the tension between Russia and Ukraine affected the financial market, and political factors led to the weakening of investors’ enthusiasm for stocks, REITs and other financial markets.Third, the supervision will continue to pay attention to the secondary market trend of public REITs and take corresponding measures to guide market makers to play the role of market trading bridge, reduce market volatility, reduce investors’ transaction costs, and encourage investors to participate in the public REITs market in a scientific and rational way.CCB fund also said that the main reason may be that the secondary market price of public REITs was affected by the sentiment of the product end, with a high increase level and a large deviation from the asset end value.As some fund managers issue trading risk alerts and strengthen investor education, the price of publicly offered REITs products is gradually returning to rationality.In the view of CCB fund, the recent decline in the premium rate of public REITs shows that the price has returned to the fundamental “value”. Investors do not need to be overly alarmed or influenced by short-term trading sentiment, and always take the quality of underlying assets and reasonable prediction of future cash flow as the value judgment of investment in public REITs.Xinhua Fund REITs investment Department and another fund company also analyzed that there are three reasons for the overall decline in the premium rate of public REITs products in the whole industry: first, the level of trading behavior, the most fundamental reason is that the overall rise in the early stage is too high, in the long run, the secondary market price will return to the intrinsic value is the general trend;Secondly, at the macro level of the market, the domestic and foreign equity markets are relatively weak recently, and the weakening of demand expectations also leads to the market’s concern about the operating performance of the underlying assets of REITs products, which leads to the risk aversion.Finally, a number of fund companies recently issued public REITs risk tips and suspended trading in intraday, to remind investors to pay attention to investment risks, risk tips of fund companies help investors pay attention to risks, calm the mood.When it comes to the trend of premium rate of subsequent public offering REITs products, many insiders said that in the long term, the secondary market price of REITs products should fluctuate around the value of underlying assets, while in the short term, it may fluctuate greatly under the influence of market sentiment and trading behavior, and the products generally still follow the law of mean regression.Lin Weixin of China Amc believes that in the long run, the risk and return characteristics of public REITs will return to the characteristics between stocks and bonds, and the price of the secondary market will anchor the profitability level and intrinsic value of the underlying assets.In addition, the strategic placement portion held by non-original stakeholders of the first batch of public REITs products will be lifted in late June, and the price impact on the secondary market is worth investors’ attention and consideration.In the view of Song Xin of AVIC Fund, the public offering REITs market has suffered a significant decline in the past two weeks, with the average decline of products being about 5%. In the long run, the price will return to the intrinsic value and remain at a reasonable level:On the one hand, from the perspective of the historical trend of the product, the public REITs market showed a strong upward trend in the early stage. If market factors lead to the continued warming of the REITs market, there is room for correction in the price of the public REITs market.On the other hand, as regulatory review speeds up, more public REITs products will come out, which is expected to ease market supply and demand, and market prices may also fall.Xinhua Fund REITs investment Department and another fund company also believe that the secondary market price of public REITs obviously deviates from the intrinsic value of assets, and the first batch of 9 products will be lifted in June 2022. Therefore, such a fall in the premium rate in the future will be a high probability event, which will also promote the secondary market price to return to rationality.Expand market capacity, strengthen investor education and guide the public REITs market to return to rational investment from “unknown” to “popular”. In the current hot public REITs market, how to reduce the short-term “speculation” phenomenon of the market and make the market return to rational investment is the focus of attention of all parties.China Amc Lin Weixin said that from the overall point of view, the public REITs is still in the early stage of industry development, the overall scale (especially the circulation scale) is small.In the state of “more money and less goods” and small circulation plate, there may be a small amount of capital “speculation” caused by the secondary market prices appear large fluctuations.He believes that increasing the supply of public REITs products and increasing the market size will help reduce the short-term “speculation” phenomenon of the public REITs market and make the market return to rationality with the continuous enrichment of investable targets.CCB provides suggestions from three dimensions. First, investors should continue to strengthen investor education, so that investors can have a deep understanding of the factors of price changes and income sources in the secondary market of public REITs, guard against irrational price increases inconsistent with investment logic, and avoid investment losses caused by buying relevant shares at a high premium.Secondly, it is suggested to continue to improve the valuation system of public REITs, such as launching the public REITs index at an appropriate time to provide investors with standards and basis for judging the price level of public REITs.Finally, with the continuous listing of subsequent public REITs and the increasing number of comparable projects, investors will form more perfect investment judgment criteria for public REITs projects of different types and regions, and the market will naturally become more rational.Xinhua Fund REITs investment department also suggested that first of all, the need to strengthen investor education, for some of the products that rose too high continue to remind investors to prevent risks through risk tips and other ways;Secondly, speed up the efficiency of the approval and issuance of follow-up products, make the overall scale of public REITs products, and avoid the influx of a large amount of capital to focus on hyping a few products;Finally, the method of adjusting cash dividend, for example, can be adjusted by the way of quarterly unequal dividend, to avoid investors in order to gain large dividend income expectations, resulting in the amplification of short-term trading activity of public REITs.Song Xin of AVIC Fund also believes that the public REITs market can be guided from three aspects: first, regulators, fund managers and media should increase REITs investment and education and continue to do a good job in information disclosure;Second, gradually realize the standardization of project review, accelerate the implementation of REITs projects, and improve the relationship between market supply and demand;Third, guide investors to deepen their understanding of REITs products and rationally participate in public REITs market investment.In the opinion of a fund company, as a new product in the domestic market, REITs products not only attract market attention but also reflect a certain scarcity, which may cause short-term “speculation” phenomenon.”We believe that we can standardize and guide the REITs market from three aspects to promote the healthy development of the market: one is to increase product supply and expand the market capacity.Second, continue to strengthen investor education and publicity of basic knowledge of REITs, so as to promote investors to have a more comprehensive understanding of the operation mode, intrinsic value and risk-return characteristics of REITs products.Third, according to the characteristics of the underlying assets of REITs products, the common valuation index of REITs products should be gradually established, and a relatively intuitive price and value reference system should be constructed to facilitate rational decision-making by investors.”As of the latest closing date, the average premium of 11 public REITs was 37.55%, down nearly 14 percentage points from February 15 a week ago, but still high, according to Wind data.A number of public REITs have recently issued a suspension notice and reminded investors of the risk of premium trading.According to Lin Weixin of China Amc, publicly offered REITs have investment value such as high coupon, anti-inflation, high long-term return rate and risk diversification.From the long-term perspective, public REITs are a kind of allocation assets suitable for long-term holding, and not suitable for excessive speculation of trading capital.He advises investors in public REITs to hold for the long term, rather than trade for the short term.Investors should carefully study the quality of the underlying assets of the public REITs project, make a comprehensive judgment on the location, historical operation, cash flow prediction, rationality of the assessed value of the underlying assets and other factors, and then make an investment judgment according to whether the price of the secondary market deviates from the fundamentals of the public REITs.Song Xin, of AVIC Fund, advises investors to first fully understand product features and carefully read public disclosure documents and industry research reports.At the beginning of the listing of REITs products, the Prospectus prudently predicts the operation and management of underlying assets, cash flow distribution and other information, and regularly issues quarterly reports and annual reports to fully disclose the operating conditions.In addition, investors need to continue to pay attention to the trend of the secondary market and rationally participate in market investment.If the secondary market price is high, you can choose to suspend the market.CCB fund also said that the revenue source of public REITs is divided into two parts, that is, mandatory annual dividend dividend and capital gains at secondary market prices.The value of dividends in the comprehensive income of public REITs can only be fully demonstrated and gain effect can be exerted under the premise of long-term holding;If too much attention is paid to the “stock characteristics” of public REITs in the short term, it is easy to deviate from the nature of public REITs products, resulting in blind pursuit of the rise and fall.At the same time, when the public offering REITs increases too much in the secondary market, the cash flow distribution rate of the product will be significantly reduced, and the expected volatility of the price will also increase.”Investors, therefore, it is necessary to have a thorough understanding of public offering REITs underlying assets and earnings, and focus on the secondary market or in the short term at the same time, from the long-term point of view, also want to refer to the corresponding dispatch rate lower, considering two parts revenue source, adhere to the value investment idea, rational view of public offering the investment value of REITs products.”Building credit fund said.A fund company believes that the most effective way for investors to avoid risks is to start from the perspective of value investment, not to follow the trend, not blindly, short-term speculative trading contains greater risk.In addition, the underlying asset types of REITs products are diverse and the transaction structure is relatively complex. It is also a better choice to entrust professional institutions to invest in REITs products.