The fund industry: "the size of supremacy" should have died
  
CCTV.com 2009 Nian 12 Yue 19 Ri 08:37 into the revival of the Forum Source: China Securities Journal
The SFC has a relevant persons "can not be blind pursuit of scale" for reminding me, giving is year-end ranking for the large-scale war fighting fund companies have poured a pot of cold water. Is clear that although regulators are glad to see the rapid development in recent years, the fund industry, but one of the factors of disharmony remains considerable vigilance. Although this is only a reminder, but this is no doubt to the fund companies have sounded the warning bell: the size of the idea should have died first.



Fund companies keen to expand the size of the original intention was for their own benefit considerations. Under the current revenue model, the fund company's main profit comes from public offer fund management fee income, the size of public offering funds will directly determine the effectiveness of fund companies. The contrast is good or bad public offering fund performance and fund the company's benefits are not directly related to, even if the encounter a bear market, but if the Christian Democrats are saying that the "killing is not redemption," the long-held notion that the fund the company's earnings were almost stable. Such a "golden rice bowl", of course, the bigger the better.

As the fund industry competition intensifies, the size of the fund's volatility began to increase, we must not only hold the existing stock markets should also apply to the increment. As previously mentioned, the "golden rice bowl" of course the bigger the better, so, the new fund distribution market war adversaries, a variety of marketing endless. Extreme of a legitimate, non-legally carry a walking a fine line, is to take the census drawn more football to its base to China. At this time, not only to stimulate the economic benefits of size, there is a huge brand, while the brand is driven forward to further increase the scale. This seems to have created a virtuous cycle, but the outcome is that the size of the fund industry is very heavy atmosphere in the performance of Japanese rose, the gap between rich and poor within the industry is also growing.

This is to trust as a link in order to fulfill its duties as a fiduciary obligation to the fund company, is not a healthy phenomenon. The cornerstone of the development of the fund industry is a huge number of Christian Democrats. The base purchase of the Fund's purpose is to fund the operation of the profession through the realization of the property value maintenance and appreciation, rather than foolish to send the initiative to fund management fees. Therefore, the fund company's first priority should be through the appropriate action to protect the performance of its funds to meet their financial demands of the Christian Democrats, the only way to make the Christian Democrats really trust the fund industry, and can really lay a solid foundation for the fund industry . However, the size of the practice of blindly pursuing would harm such a trust. While the fund industry in recent years of rapid expansion and prosperity under the cover of this approach is not Weiren aware of the dangers, but with the rapid expansion of the end, the fund industry's development will therefore be a severe test.

In fact, there are already many of the industry aware of this. The total size of the industry nearly two years of stagnation, so that they understand that the fund industry's golden period is over, breaking the bottleneck in the development of industry, the size of impulse alone is not enough. This is, perhaps a small number of several major fund companies had no obvious effect, because resources are sharply focused on them, but for many small and medium sized fund companies, but which are likely to result in a knock-out tournament experience. To compete in an increasingly brutal survive, they need another way, rather than continue to make an issue of scale. As the person in charge referred to the SFC, the scale size is not to measure the Fund's strengths and weaknesses of the key indicators. Medium and small fund companies may be able to have a special account for other non-public offering to create a new world war.

However, for those who already big fund companies who want to take the initiative to change the concept is not easy. From the first idea of the size of the holder into the supremacy of philosophy, without regulators to focus on guidance, alone word, it would be difficult to see results

Morning Roundup: market is expected to enter the structural adjustment phase
  
CCTV.com 2009 Nian 12 Yue 21 Ri 08:39 into the revival of the Forum Source: CCTV Network Integrated
    Friday once again plunged the two cities, real estate, stocks affected by bad blow fell across the board, and more than individual stocks lower limit, the Shenzhen market were a greater impact, or significantly larger than Shanghai stock market. Hu Zhi closed at 3113.89 points, or 2.05%, weekly drop of 4.11%; Shen Chengzhi to close at 12,914.97 points, or 3.56%, weekly drop of 6.92%, the highest weekly decline in this year's second place. Deal a bit smaller than the two cities, Shanghai stock market turnover of 118.9 billion yuan, the Shenzhen market turnover of 76.14 billion yuan.

    Disk observations, all the plates have fell, the two cities daily limit is only two stocks, Wikipedia Group (600,077), and ST Kejian (000035), Wikipedia suspension in January after the group daily limit of two consecutive immeasurable due to notice that real estate developers are the Group Song the backdoor listing. Real estate stocks by the bad news hit across the board fall, and more than real estate stocks lower limit, seriously weighed on the market, "Zhao Jin-Bao million" In addition to the four major real estate stocks Vanke A (000002) fell 6.03%, the rest are all down more than 7%. GEM morning weakness in the afternoon pulled up, in addition to agricultural Yoshimine (300,022) and the robot (300,024) outside the meteoric rise to the rest of stocks across the board today. In general, the broader market was stronger than medium and small market capitalization blue-chip stocks, China's Sinopec (600028) rose 0.46%, PetroChina (601857) fell 1.26%, Baoshan Iron & Steel (600019) rose 0.71%, China Unicom (600.05 thousand) rising for 2, close up 0.73%. Shang Fulin, the morning because of the financial year will be that it will timely introduction of margin trading and stock index futures, early last paragraph, broker and futures-related stocks pulled the beginning, but with the broader market weakened in the afternoon ascribed to fall.

    Technically, Hu Zhi 4 consecutive fell, technical indicators at oversold, the two cities below the Bollinger Bands are under the stock rail, Hu Zhi close below 60-day line, not far from the half line, there are technical rebound in demand. As the real estate shares slump, a severe blow to confidence in the market, and many short-term decline in real estate stocks is too large, but the stock is mainly real estate stocks lower limit, indicating the risk of other stocks may still not released. From the calorimeter performance, the 4 consecutive fell, turnover remained stable, perhaps the main force of an orderly retreat. Overall, the property control heavy blows, so that further market bearish market outlook, management's attitude toward squeezing asset price bubbles is clear, though it is generally expected to face off funding in 2010 is still looking sustained, but the stock supply pressure has been revealed, the market is also expected to enter the structural adjustment phase. May be concerned about the short-term rebound in the vicinity of half-line, and have defensive value, high-quality blue chips