SMM News: rare earth plate set off a tide of rise and stop, buyers and sellers are excited. Fund company sources told reporters that in the past two days, rare earth related seller conference calls are almost continuous, fund managers have begun to study the rare earth plate. From the public position disclosed in the quarterly report, the fund has fewer positions on rare earths. In the face of the sudden market, increasing the position or waiting to become the problem that the fund manager needs to choose.
Fund empty rare earth permanent magnet
On May 21, the rare earth index soared 9.77%, ranking first among the 140 concept sectors, while the rare earth permanent magnet index rose 8% to second place, according to Wind. Hong Kong stocks, which do not have a limit, are even crazier, with Chinese rare earths up 108.11 per cent in a single day.
However, fewer public offering funds shared the feast. From the statistics of the quarterly report, we can see that the public offering fund does not attach importance to rare earths and is in a low-matching state. Of the 25 related stocks counted by Wind, 20 are held by public offering funds, but the number of shares held by public offering funds is quite limited, and most of the total holdings of public offering funds do not exceed 1 per cent of the outstanding shares of these stocks. Among them, only Zhenghai magnetic materials of the public offering fund shareholding proportion of more than 3.47%. Among the sector as a whole, the largest number of holding funds are the blue-chip northern rare earths in the rare earths sector, with 18 funds holding a total of 15.117 million shares, but that number accounts for only 0.41 per cent of the company's outstanding shares. From the specific position of the fund can be seen, the allocation of rare earth permanent magnet industry key companies of public funds are mostly passive index funds or related theme funds, the allocation of active funds is very little.
Judging from the recent trading situation, the popularity of the rare earth plate is more like a "feast of hot money." Dragon and Tiger list data show that the recent trading seats are mostly business funds, there are few institutions.
"the rare earth industry has not done very well in the past few years and we haven't seen it for a long time." A fund manager told reporters.
Rare earth plate attracts a lot of attention from fund managers
"rare earths have only gone up for two days, and sellers are already paying close attention to it. There are countless brokers holding conference calls today." A fund manager told reporters. Other fund managers say they have begun to focus on investment opportunities in the rare earth industry.
For the recent outstanding performance of the rare earth permanent magnet plate, the Chinese Business Foundation researchers believe that the core reason lies in the improvement of fundamentals and event catalysis. Rare earth is an important strategic resource in China. In the past few years, the industry has been in the doldrums. It has been digesting the sequelae of the price surge in 2011, the clearance of excess capacity, the departure of illegal mining and smelting enterprises, and the digestion of overstocked stocks. It was not until 2017 that stocks of light rare earths showed signs of clearing, and by the end of last year, stocks of medium and heavy rare earths had also shown signs of deactivation.
Judging from the recent data, the researcher of the Chinese Business Foundation pointed out that at present, the price rise in the industry is relatively good for medium and heavy rare earths, and the price of dysprosium oxide has recently been quoted as high as 1.7 million from 1.2 million at the beginning of the year. The suspension of some imports and other events is also one of the more important factors driving up prices.
Pu Yin Axa fund manager Jiang Jianwei said rare earth prices are greatly affected by policy, rare earth prices are expected to rise in the future is a high probability event. He analyzed that rare earth resources are closely related to the demand of a large number of high-tech industries, but the price of rare earths is unable to rise due to repeated bans on illegal mining and smelting of small minerals. If this problem can be solved in the future, it will be obviously beneficial to the listed companies related to rare earths.
Zeng Wenhong, a fund manager at Nord, said the future trend of the rare earth industry mainly depends on the supply and demand pattern of the industry itself. Zeng Wenhong analysis, the response of the secondary market is mainly based on the supply side of the adjustment expectations, in the short term, the rare earth sector is certainly a hot spot in the market.
However, paying close attention to the investment opportunities of rare earth permanent magnets does not mean that they will start buying. A fund manager told reporters that the rare earth plate rose too fast these days, although they pay close attention to, but should not easily make trading decisions. "it has not yet been decided whether to buy some, and even if it is to buy, it will only be used as an asset allocation."
A fund manager with a small number of rare earth positions told reporters that he would continue to follow and that future operations would depend on stock prices and industry trends.
"it is also necessary to see if the sustainability of the heat of the rare earth plate and the positive expectations of policies and fundamentals can really be implemented." "if it's just a wave of short-term emotional speculation and there's no way to achieve a real improvement in fundamentals, then we don't have to be involved," fund managers told reporters. "