Approaching the end of the year, another invisible war has been unveiled on the foreign exchange market, Tian Jiayi brought Fang Hong's decision to the trading team, and now has begun to carry out the "pumping" plan, that is, to continue but gently buy RMB in the offshore market.

This time Fang Hong did not plan to come to the front line to operate, although this capital duel in the foreign exchange market is also very important, but Fang Hong attaches more importance to the SGX, and in the long run, the most important thing is to do a good job of the SGX.

As for the duel on the foreign exchange market, it is enough to strategize, and if necessary, it can also be commanded remotely.

In the last month of this year, the biggest news for the mainland capital market is the light-speed implementation of the circuit breaker mechanism, which was officially proposed at the beginning of this month, and the relevant regulations on index circuit breakers were officially put into effect on January 1, 2016.

The speed of this landing is also called the speed of light, which is only faster than the SGX.

That is to say, on January 4, the first trading day of the new year, the big A will not only usher in the opening of the SGX, but also the main board index will officially launch the circuit breaker mechanism on this day.

For the implementation of the circuit breaker mechanism, people from all walks of life now have different views, some are looking forward to it, some are worried, some are confused, and more are full of uncertainty, and the only thing that can be determined is that the market outlook is full of uncertainty.

Fang Hong didn't make any comments on the implementation of the circuit breaker mechanism of the big A main board index, and he didn't have time to do this, he had a lot of things, a new round of capital war was being launched in the foreign exchange market, and the SGX was also landing at this time, and there was not much effort to eat melons.

This month, he didn't even pay much attention to the news of Elon Musk's successful test of the Falcon 9 recovery rocket.

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Weekend of December 20th.

SGX has issued an announcement that the compilation of the SSE 50 Index has been completed, and the sample constituents of the index for the first time include the 22-listed stocks of the Galaxy that have been listed on the SGX-ST.

In addition, three stocks were also selected in the first batch of new stocks registered and listed, namely Jingdong, Mihayou, and Beery Beeli, with a total of 25 constituent stocks.

Under normal circumstances, the SGX 50 Index needs to be composed of 50 constituent stocks, but because it is to be opened together with the opening day of the SGX, there are only 58 stocks on the first day of the SGX, and the stock pool of the exchange is not enough.

However, this does not prevent the opening of the new stock 50 index, and the 50 constituent stocks can be gradually replenished in the future.

Under normal circumstances, the SGX 50 index should not be opened so quickly, but the implementation of the SGX registration-based pilot is itself extraordinary, and the lack of external factors on the SGX is the biggest reason why the SGX 50 can be opened simultaneously.

Originally, the seven major galaxy-themed public funds also switched to the SGX, because the listed companies of the galaxy have already arrived on the SGX, so they naturally have to follow.

On the day of the announcement of the new stock 50, it was also disclosed that the passive open-ended exchange index fund "new stock 50 ETF" will also be launched at the same time, fully tracking the new stock 50 index, and the holdings are also constituent stocks of the new stock 50 index.

Individual investors who do not meet the entry threshold of SGX can trade the new stock 50 ETF fund on the exchange, with an initial net value of 1 yuan, and buying 100 shares is 100 yuan.

As an on-exchange ETF fund, as long as there is an A-share account, investors can directly invest in ETF varieties without additional permission to open on SGX.

There are ETFs on the market, and there are also a number of public fund institutions outside the market that have launched the "New Stock 50 ETF Connect A/C", which is also a passive index fund, and people who do not have a stock account can also indirectly invest in SGX stocks.

There are three main differences between ETF funds and ETF feeder funds:

One is that the investment target is different, the ETF fund tracks a specific index, the new stock 50 ETF tracks the new stock 50 index, and will not track the Shanghai Index or the Shenzhen Component Index, with the purpose of achieving the same return as the index, while the ETF feeder fund tracks the target of the ETF fund, with the purpose of achieving the same income as the ETF fund.

The second is that the trading venues are different: ETF funds are traded on the stock exchange and need to open an on-exchange account to trade, while ETF feeder funds are traded in the over-the-counter market and can be purchased from the fund distribution platform.

The third is the different trading methods: ETF funds are traded according to the real-time market price, which is basically the same as stock trading, and ETF feeder funds are traded according to the net value of the fund, that is, today's purchase is based on today's after-hours net value as the transaction price.

As for the identification of OTC ETF feeder funds A and C, the main difference is the fee method, A is a one-time deduction of handling fees before purchase, C is no subscription fee and redemption fee, but after the purchase will be charged on a daily basis, so the net value of connection A is usually higher than C, and the fund is generally a long-term investment.

However, it is worth mentioning that the new stock 50 ETF fund is still different from other on-exchange ETF varieties, mainly because the trading time is two hours longer than other ETF varieties, because it is consistent with the trading hours of the SGX.

Other ETFs and the main boards of the two cities open at 9:30, but the SGX opens at 9 o'clock, and the main board will be closed at noon, while the SGX does not divide the morning and noon, and maintains continuous bidding until the close of trading at 15 o'clock in the afternoon, and the same is true for the SGX 50 ETF.

This is different from other ETF varieties, in addition to the new stock 50 ETF and the SGX there are some differences, the stock trading mechanism of the SGX is institutional T+3, individual retail T+1, but the new stock 50 ETF adopts the T+1 mechanism regardless of institutional retail investors, which is the same as other ETF varieties in the market.

It seems that institutions can take advantage of loopholes and circumvent the restrictions of institutional T+3 through the new stock 50 ETF fund, and Fang Hong's design is actually to encourage more institutions to invest in ETF varieties as much as possible, which can better reduce market volatility.

Because the funds coming in from the ETF fund will not flow into a single stock, and the assets held by the ETF are the constituent stocks corresponding to the index, buying the ETF is equivalent to buying a basket of stocks, and the funds will flow into the corresponding constituent stocks of the index.

Institutions that have invested in the SEE 50 ETF cannot sell the ETF because one of the 50 constituent stocks in the NES 50 Index has sudden news, and get rid of the other 49/50 in order to avoid 1/50 of the loss, which is purely an act of picking up sesame seeds and throwing away watermelons.

The precipitation of large funds in ETFs can reduce market volatility to a certain extent, at least to reduce the violent fluctuations of a single stock.

Therefore, it is not possible to let the new stock 50 ETF also engage in institutional T+3 and retail T+1 such mechanisms, relatively speaking, the ETF variety is more diversified, and most ETF varieties are consistent with the rules of the main board, but some ETF varieties are different.

For example, some ETF varieties tracking H-shares maintain the T+0 mechanism, which is another set of rules, but some shareholders don't know it.

The SGX and the New Stock Exchange 50 Index are open at the same time, and there are many institutions that support the market, and there are also rich investment channels for individual retail investors who do not meet the entry threshold.

Large institutions such as Xingquan Fund, Huaxia Fund, and Yifangda Fund have launched ETFs, LOF funds, ETF/LOF feeder funds A/C, active hybrid theme funds, etc.

It is worth mentioning that a major difference between active funds and passive funds is that the fund manager of an active fund has great authority, and he has the right to choose stocks and build positions or transfer shares to form the fund's portfolio according to his own judgment.

Passive funds can only follow the index, and fund managers do not have much personal operation authority, such as on-exchange new stock 50 ETF funds or over-the-counter new stock 50 ETF connected to A/C funds.

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