LOF fund, the full name of "listed open-end fund", is an open-end securities investment fund that can be subscribed, purchased, redeemed and traded on the Shanghai Stock Exchange. Investors can subscribe, purchase and redeem fund shares through the Shanghai Stock Exchange's on-site securities operating agencies or over-the-counter fund sales agencies.
The characteristic of LOF funds is that they can be bought and sold in the exchange market like stocks (on-exchange trading), and they can also subscribe and redeem funds through specific institutions (over-the-counter trading). Due to the existence of two markets, on-site and off-site, LOF funds have arbitrage space at discounts and premiums, which increases their liquidity.
LOF funds and stocks are similar in some ways, but also different in many ways.
Similarities include:
Trading methods: Both LOF funds and stocks are traded in the market. They all follow market trading rules and need to pay relevant taxes and fees. Investment strategy: Both LOF funds and stocks need to consider market trends, company fundamentals, etc. in their investment strategies. macroeconomic factors.
Differences include:
Trading method: The trading method of LOF funds is more flexible. Investors can freely buy and sell LOF fund shares in the secondary market, without having to wait until the end of the trading period to trade like holding stocks. In addition, investors in LOF funds can also purchase or redeem fund shares from the fund company in the primary market, which is not available in stock trading.
Investment costs: The transaction costs of LOF funds are relatively low because their trading methods are more flexible and the related taxes and fees are relatively low. In contrast, stock trading requires payment of stamp duties, transfer fees, transaction commissions and other fees, which increase investors' costs to a certain extent.
Investment portfolio: The investment portfolio of LOF funds is more flexible and can adjust its investment portfolio in time according to market conditions to adapt to market changes. Stock investment usually requires investors to conduct in-depth analysis and research on the company's fundamentals, market trends, macroeconomics and other factors to formulate reasonable investment strategies and risk control measures.
In general, LOF funds and stocks are similar in some aspects, but also have many differences. When investors choose investment tools, they need to comprehensively consider factors such as their investment objectives, risk tolerance, and market conditions to formulate reasonable investment strategies and risk control measures.
[Market Judgment]
Externally, the three major U.S. stock indexes closed higher across the board, with the Dow Jones Industrial Average rising 1.4%, the S&P 500 Index rising 1.37%, and the Nasdaq Composite Index rising 1.38%. At yesterday's Federal Reserve interest rate meeting, the Fed, as expected by the market, held steady for three consecutive interest rate decisions. At the same time, it made changes to its interest rate guidance to soften its stance on raising interest rates, saying it would consider "any" additional tightening needed. The dot plot shows that more than half of Fed officials expect to cut interest rates at least three times next year, and the Fed's attitude is obviously dovish.
Domestically, the market fell sharply yesterday. Only 1,360 stocks in the two cities rose. The market volume was 768.5 billion, and the northbound net sales for the whole day were 9.590 billion. As of the close, the Shanghai Composite Index fell 1.15%, the Shenzhen Component Index fell 1.54%, the GEM Index fell 1.66%, and the Beixin 50 Index rose 3.59%.
In terms of industries and hot spots, the market’s leading directions are COVID-19 specific medicines, instrumentation, reducers, etc. The strength of the COVID-19 specific drug sector stems from the recent JN.1 COVID-19 variant sweeping the world. Experts predict that there may be a peak of infections around New Year's Day. Instruments and reducers are both robot concepts. They strengthened significantly yesterday due to the news that humanoid robot manufacturer UBTECH has passed the hearing of the Hong Kong Stock Exchange at the beginning of this month and will be listed on the main board of the Hong Kong Stock Exchange. It will officially become the "first humanoid robot". One share". At the same time, Tesla’s official website launched the second-generation Optimus Prime robot yesterday, catalyzing the upward trend of the sector.
Yesterday, the market led the decline in pig breeding, beverage manufacturing, leasing and selling rights, etc. The weakening of the pig breeding sector is due to the fact that the fundamental trend of the sector has not improved significantly. The weakening of the beverage manufacturing sector is due to the sharp decline in the concept of liquor and is related to the unclear economic aggregate support policy. The concept of rent-to-sale rights has weakened due to the large increase the day before, but no substantive policy was released after the market closed, so it fell sharply yesterday.
After the market closed yesterday, the central bank released financial data for November. RMB loans increased by 1.09 trillion yuan in November, a decrease of 136.8 billion yuan year-on-year. In November, M2 money supply was 10% year-on-year, compared with the previous value of 10.3%, while M1 increased by only 1.3% year-on-year. China's social financing scale increased by 2.45 trillion yuan in November, compared with the previous value of 1.85 trillion yuan, and the existing social financing growth rate was 9.4%. The social financing data in November were basically in line with expectations, the loan data was slightly lower than market expectations, and the scissor gap between M2 and M1 further widened, indicating that the current domestic economic recovery is still relatively slow.
Overall, the market fell sharply yesterday, but continued to shrink. This was mainly due to the pressure on profit-taking after the launch of the key meeting of funds based on gaming policies. Judging from the past few patterns, the national team will have obvious signs of protecting the market when the Shanghai Composite approaches 2900 points. Therefore, the index may have limited room for decline this time. At the same time, the Federal Reserve hinted for the first time that it may cut interest rates next year, which also helped boost market risk appetite. In terms of sectors, since the overall economic policy is still unclear and the conference provides strong support for technological innovation, the short-term market style may still be in the direction of pan-tech.