"The Wolf of Wall Street" BlackRock came, Zhang Kun panicked?

What kind of storms will the foreign-funded public offering institutions bring to the market?

Zhang Kun has a new opponent.

A few days ago, according to the website of the China Securities Regulatory Commission, it has received materials about BlackRock Fund Management Co., Ltd. "Public Fund Raising Application Registration-BlackRock China New Vision Hybrid Securities Investment Fund".

This means that foreign capital has officially entered the domestic public fund market.

In this regard, BlackRock founder Larry Fink once said frankly: "China is undergoing great changes, and the price of ignoring this emerging opportunity is too high, especially in the long run."

As the first foreign-funded public offering institution, where did BlackRock come from? Are investors interested in it? Will it disturb a pool of spring water?

"Uncrowned King" holding 58 trillion yuan

Right now, BlackRock can be called the "uncrowned king" of Wall Street.

Blackrock cannot be avoided when it comes to BlackRock. The former is called BlackRock in English, and the latter is called Blackstone in English. From the name, it can be seen that the relationship between the two is extraordinary.

According to public information, Stephen Schwarzman founded Blackstone in 1985 for 400,000 U.S. dollars, and BlackRock was born in 1988. At that time, the identity of the "Blackstone Financial Management" department was led by Larry Fink (Larry Fink). · Fink) was founded.

Larry Fink

But I don't want the two big guys to get along well and show a tendency of faint opposition.

By 1995, the contradiction became irreconcilable and had to break up. From then on, BlackRock and Blackstone parted ways: BlackRock took the public offering route, mainly for individual investors, while Blackstone took the private placement route, mainly for Sovereign wealth funds, insurance companies, pension funds and other services.

After the separation, the two companies are different from each other.

At first, Blackstone clearly overwhelmed BlackRock but didn't want the latter to have more endurance, and the first-mover advantage was gradually wiped out, and even overtaken. The reason for this is that the public equity market is naturally larger than the private equity market, and it is the same all over the world.

According to data from the China Association of Fund Industry, as of May 31, 2021, the scale of domestic public fund management was 22.91 trillion yuan, while the scale of private equity management was 16.06 trillion yuan.

Today, BlackRock has become the world's largest public equity asset management company, and Blackstone has become the world's largest private equity management company.

However, the status of BlackRock and Blackstone's arena is very different.

As of July 6, 2021, BlackRock's market value is 136.4 billion U.S. dollars, while Blackstone's market value is 66.815 billion U.S. dollars. More importantly, the former has 14 times the asset management scale of the latter, which is no longer the same.

According to public information, BlackRock has operations in more than 100 countries and regions, and its asset management scale is as high as US$9.007 trillion, which is equivalent to RMB 58.32 trillion.

"I often imagined that if the two companies had not separated at the beginning, what would they have developed into now?" Su Shimin regretted the separation back then.

Despite its importance on Wall Street, BlackRock has been absent from China's public offering market for a long time, and it has always been difficult to settle.

Until April 1, 2020, China lifted the restriction on the foreign shareholding ratio of fund management companies, and BlackRock applied for the qualification approval for the establishment of public fund management companies as soon as possible.

In this regard, Larry Fink once said: “We look forward to sharing our global investment expertise and providing Chinese investors with more differentiated investment solutions.”

Looking at it this way, Larry Fink's vision is one step closer.

Does the monk from outside chant sutras well?

BlackRock's first public fund is getting closer and closer, and investors have different opinions on it.

"There is a proverb in the stock market: when foreign investors buy, villas rely on the sea. If BlackRock is really capable, of course, it will consider it." Qu Zongyi said.

Qu Zongyi bought stocks for direct investment and indirect investment from funds.

The reason for this is that Qu Zongyi is a short-tempered man, who likes to move in and out quickly, and cannot afford profit. Although he has been in the stock market for more than ten years, the overall income has only been flat. In recent years, long-term investment and grouping have become popular. White Horse stocks have also allocated a lot of funds under the mentality of surrendering if they fail to beat them.

"In the early years, I followed my feelings. What you buy depends on your eyes. You can get it right. I really lost a lot." Qu Congyi said that foreign investors are good at bargain hunting, and they gradually regain their profits after following foreign operations. , I have to accept this."

Qu Zongyi told Zinc Scale that the returns on the fund held by it are not bad, and there are plans to increase it further in the future, and the possibility of subscribing to BlackRock's first public fund is not ruled out.

Compared with Qu Zongyi, Hu Shengyu's attitude is more conservative.

As a "post-90s" Internet practitioner, Hu Shengyu has an arduous job and does not pay much attention to stocks at ordinary times. Therefore, he relies on funds for financial management for a long time and trusts Zhang Kun more.

At first, when friends around him kept recommending Zhang Kun, Hu Shengyu didn't catch a cold, because he didn't drink baijiu and couldn't empathize with the baijiu fund.

It didn't take long before Hu Shengyu broke the defense.

"No amount of saliva is useless, only making money is the last word." Hu Shengyu's attitude towards Zhang Kun afterward took a 180-degree turn, "If you are not religious enough, you won't be able to make a lot of money, and if you trust him enough, you won't get away. "

In the first half of 2021, the performance of Zhang Kun's funds suffered "Waterloo". For example, the net value of E Fund's small and medium caps fell by 1.62%, especially after the Spring Festival underperformed the Shanghai and Shenzhen 300, and the industry ranked bottom.

Naturally, Zhang Kun became the target of public criticism.

In this regard, Hu Shengyu was not discouraged: "No one can always step on the right front. Didn't he say that no matter what investment method, it will inevitably face performance lag in certain periods?"

In this context, Hu Shengyu is cautious about BlackRock's first public fund: "The A-share index has not risen for ten years. It is simply the Hard mode. Will foreign monks be easy to recite?"

Is it a crocodile or a catfish, there is still suspense

In fact, whether foreign monks will chant the scriptures well, whether BlackRock will encounter dissatisfaction, and the attitude of the financial community is also very clear.

One view is that BlackRock is quite familiar with the Chinese market.

According to BlackRock's official website, BlackRock China A Opportunity Fund, iShares China Large-Cap ETF and other funds cover the A-share market.

A single round of performance is not inferior to a domestic counterpart.

For example, BlackRock China A Opportunity Fund was established on December 27, 2018. The top ten major stocks are China Merchants Bank, Mindray Medical, Kweichow Moutai, Industrial Bank, BOE, Ningde Times, Sinotrans, Shanxi Fenjiu, Transportation Banking, PetroChina, involving many popular tracks such as medical care, liquor, new energy, and technology.

The top ten largest stocks of BlackRock China A Opportunity Fund

As of June 30, the fund's net value growth in the first half of 2021 was 5.22%, while the median net value growth of domestic tens of billions of equity public funds was 5.3%, which means that it is comparable to mainstream domestic investment.

An international investment bank analyst said: "From the name, BlackRock's first public fund is a hybrid. It is not an index type that it is good at, but it has fully considered the particularity of the A-share market."

And Huatai Securities told Zinc Scale: "At present, the symbolic meaning is greater, but BlackRock's entry into the country will also bring some advanced foreign management experience and investment concepts into China."

Another view is that BlackRock may not be able to set off many storms.

Chen Tingtao, manager of a private equity investment department, believes that the frequent rotation of the A-share sector and the changeable investment strategy are incompatible with foreign investors' advocacy of long-term investment.

"The reorganization theme in 2005 has made Wang Yawei, the GEM in 2015 has made Ren Zesong, the concept of liquor in 2020 has made Zhang Kun, and the market-style has been changing." Chen Tingtao said.

Chen Tingtao further stated that BlackRock has to adapt to the bloody nature of investors, such as "Kun when it rises, and Kun dog when it falls." This kind of love and hatred will inevitably happen in an instant.

Liu Xuling, executive director of a public equity fund company, told Zinc Scale: “You can compare the entry of foreign banks into China that year. At present, Chinese banks still have absolute market share, and some foreign banks’ performance is not even as good as city commercial banks. Therefore, don’t go too far. Myth, in the final analysis, is to compete for performance, and domestic public funds have not been mediocre after years of intensive cultivation."

From this perspective, the impact of BlackRock's inbound public fund track is still uncertain. The only thing that can be determined is that Schroder, Fidelity, Lubomai and other foreign capital are on the way.

So, under the same stage of the competition, whether foreign investment is a crocodile or a catfish, only time can answer.

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