Author: Xu Nuo
Source: Securities Times Network
Securities Times·Brokerage China reporter noticed that the annual return rate of the Bitcoin fund operated by the leading public offering company has surpassed 99% of mainland fund products. This may be affected by the high returns of the company's alternative investment products. This large-scale company The publicly offered Hong Kong stock theme fund also held a heavy position in stocks related to Bitcoin assets for the first time. The latest financial report disclosed by the latter showed that the surge in performance was mainly due to the contribution of Bitcoin.
It is worth mentioning that as the influence of Bitcoin assets grows, there are more and more connections between people with public offering backgrounds and Bitcoin. In addition to the layout of the above-mentioned leading public offering products, there are already major pre-public offering Xiao Feng, a fellow, and Wang Yawei, a top figure before the public offering, are involved in related investments.
Public placement of Bitcoin ETF makes huge profits
Wind data shows that the return rate of fund products this year is the highest at 55.32%. The second-ranked fund product has a return rate of 47.5% during the year, while the fund with the highest loss has lost 40% of its net value during the year. This data does not include public funds. Alternative products operated by overseas subsidiaries. Taking Southern Fund as an example, a Bitcoin ETF fund operated by the company's Hong Kong subsidiary has achieved a rate of return of 54.63% this year. This performance has surpassed 99% of mainland public offerings, whose main investment targets are Stock Assets.
Although mainland stock and fund investors have always maintained a bottom-level understanding of "disdain for the chain" when it comes to investing in Bitcoin, leading public fundraisers regard Bitcoin assets as a serious matter. Brokerage China reporters noticed that in December last year, the Hong Kong subsidiary of China Southern Fund officially launched Asia’s first batch of virtual asset ETFs: CSOP Bitcoin Futures ETF and CSOP Ethereum Futures ETF. The relevant ETFs were officially listed on the Hong Kong Stock Exchange. With the transaction, Southern Fund has become the first mainland public fund to develop Bitcoin fund business.
In terms of specific strategies, take the Bitcoin futures ETF as an example. According to the Hong Kong subsidiary of China Southern Asset Management, this is a futures-based exchange-traded fund that is affected by the risks of related derivatives and is different from traditional exchange-traded funds. different. The investment objective of the Sub-Fund is to achieve long-term capital growth by investing primarily in Bitcoin futures on the Chicago Mercantile Exchange (CME Group), whose price movements may deviate significantly from the spot price of Bitcoin. The Sub-Fund does not seek to provide returns on the spot price of Bitcoin. In addition, the Sub-Fund’s investment in CME Group’s Bitcoin futures faces major risks, such as potentially large rollover costs, operational risks (such as margin risk and risks associated with related parties). risks associated with enforcement measures being implemented). The sub-fund adopts an actively managed investment strategy. The Sub-Fund does not seek to track any index or benchmark, and the Manager does not conduct replication or representative sampling.
Many public fundraisers are involved in digital currency
Corresponding to the stock market, Bitcoin prices have been excellent during the year.
Brokerage China reporters noted that as of October 2, Bitcoin has increased by 70% during the year, the price of each Bitcoin has exceeded 200,000 yuan, and the total market value has reached 3.89 trillion yuan. In addition, the market value of Ethereum has also exceeded 1.48 trillion yuan, and the price of the latter has also increased by more than 40% this year.
The strong performance of Bitcoin and Ethereum may benefit star fund managers who have entered alternative investments, including Xiao Feng, a former public fund boss, and Wang Yawei, a top figure before public offerings. In particular, Wang Yawei’s position portfolio suddenly declined in the fourth quarter of last year. Joining the digital currency assets that have been severely abandoned by the market, Bill Miller, a famous American fund manager who has outperformed the S&P 500 index for 15 consecutive years, publicly stated last year that 50% of his personal investment portfolio is Bitcoin, and the other 50%. The portfolio is in Amazon stock, which Miller said he has bought and held since Bitcoin was at $200.
Xiao Feng, the former boss of public funds, has always been particularly fond of virtual assets such as Bitcoin. Xiao Feng said at an event at the end of September that the virtual asset policy of the Hong Kong Special Administrative Region is not just to speculate or trade crypto tokens, but to serve the real economy through tokenization, support technological innovation, and upgrade the financial center. He said that the Hong Kong International Virtual Asset Center needs a four-layer structure: an active secondary market (transaction), an effective primary market (issuance), centralized industry services, and a rich industrial ecology (Web3.0). On this basis, Hong Kong can be upgraded to Hong Kong International Financial Center Version 2.0.
Fund managers use stocks to enjoy the currency market
It is worth noting that Southern Fund not only deploys Bitcoin fund business, it is also actively buying stocks with Bitcoin concepts in the stock market.
According to the fund's semi-annual report, the Southern Hong Kong Growth Fund managed by Wang Shicong purchased Meitu on a large scale during the second quarter of this year and included Meitu among the top ten holdings. Meitu is almost one of the few stocks in Hong Kong stocks. Among the stocks that will rise in 2023, Meitu's stock price has increased by as much as 60% in the past four months alone.
Why did Southern's Hong Kong stock theme fund buy Meitu, a company that had been extremely disliked by the market? Industry insiders believe that considering that Southern Fund has actively deployed Bitcoin ETFs and the price of Bitcoin has increased significantly during the year, the implicit value generated by Meitu's large holdings of Bitcoin assets may be easier for fund managers to understand. .
After Southern Fund took a heavy position in Meitu, the latter's interim financial report showed how Bitcoin assets have helped the performance of this Hong Kong stock company. According to financial report data released by Meitu, Meitu achieved total revenue of 1.261 billion yuan in the first half of the year, a year-on-year increase of 29.8%. The net profit attributable to the parent company was 228 million yuan, turning a loss into a profit compared with the same period in 2022. The adjusted net profit attributable to the parent company was 151.5 million yuan, a year-on-year increase of 320.4%.
This amazing performance growth is largely due to Bitcoin. The report shows that the cryptocurrency impairment reversal amounted to 186 million yuan. According to Meitu's semi-annual report, as of June 30, 2023, Meitu Group valued its cryptocurrency holdings based on the market price at that time. The fair value of the purchased Ethereum units was approximately US$57.41 million, and the fair value of the Bitcoin units was approximately US$57.41 million. The fair value is approximately US$28.28 million. In accordance with the relevant accounting regulations of International Financial Reporting Standards, Meitu Group classified the purchased cryptocurrency as an intangible asset and measured it using a cost model. As the cryptocurrency market fluctuates, the market price of purchased cryptocurrencies has increased as of June 30, 2023 compared to December 31, 2022. As a result, Meitu Group confirmed a write-back of cryptocurrency impairment losses of approximately RMB 185.6 million. Accordingly, Meitu Group has set back impairment losses of approximately RMB 90.8 million and RMB 94.8 million respectively on the purchased Bitcoin and Ethereum within the six months ending June 30, 2023.
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