Wednesday, May 18, 2011

New Fund intensive i16uing billions of funds are expected to rush to the rescue the stock market

According to the morning news reported, with new funds of intensive release, although the average initial size is not high, but number of advantages to cover release disadvantage, raised more than $ 100 billion this year.
Market bottom, once established, these funds would enter the market at any time. Statistics show that as of May 16, this year at least 73 new funds (categories evaluated individually) was formally established, raise capital of up to 91.532 billion. At the same time, rough estimates show that funds reach 45 currently being issued, which long Cheng Tongxin will end on Friday raised, taking into account the recent low risk products favored, its initial size should be higher than average. Even if, in accordance with the above calculation of the average issue size of the Fund, the short term will have recorded more than 50 billion yuan of funds.
Taken together, total new funds short-term raised more than $ 100 billion is a foregone conclusion. Stability of the new Fund is stock market "flowing water" sources. From the perspective of a share of the incremental funding, according to the information gold company, released half a month before the May fund number is more than the average monthly level of this year, from late May to early June jiancang period will bring substantial incremental funding to market; however, the added accounts as well as a share account activity continued to decline, shows market sentiment has not yet been recovered. Taking into account the recent grant funds will still be continued, the Fund issued peak may also be extended.