The male god of magic capital

Chapter 107 108 Stock Index Futures Hedging
Thursday, July 11th.

In the trading room, there was once again a tense atmosphere.

The stock market plummeted yesterday, and it may continue to plummet today. At present, Chengtian Public Fund still holds 78.5 billion worth of stocks. The market is still down today. If the entire medical sector follows suit, the net value of Chengtian Public Fund will also shrink a lot.

"Boss, if the market drops sharply today, should we buy the bottom?"

"I'm afraid the market will continue to plummet today."

"I don't know if the medical sector will continue to fall?"

"Actually, except for Aier Ophthalmology, which we checked off, in the medical sector yesterday, the price limit occurred, and the other stocks did not fall much."

"If the market plummets today, we can short stock index futures for hedging."

"Yeah, anyway, we have so much liquidity on the books, it's feasible."

With the liberalization of investment restrictions on stock index futures by public fund accounts and trust companies, more and more public fund account wealth management products and private fund products have begun to introduce stock index futures hedging strategies.

In addition to the market-neutral strategy of strictly hedging stock positions, many fund products also adopt timing hedging strategies to increase the fund's income level.

Public equity funds and private equity funds, the main force in the market, do not want to liquidate their stocks when the stock market plummets, so there is another option, which is to short stock index futures for hedging.

Stock index futures, typically the CSI 300 Index.

For example, when the A-shares plummeted, the value of the stocks held by public funds shrank severely. For example, if they held 100 billion stocks, after the market plummeted that day, the value of these stocks shrank by 10%, and they lost 10 billion.

When the public offering fund shorted the Shanghai and Shenzhen 300 Index and made another 10 billion, then the two will cancel each other out.

This is hedging.

Luo Cheng asked: "How much liquidity is still on the books of the public offering fund?"

Jiang Manman said, "Boss, since the fund purchased 20 billion last night, the current liquidity of Chengtian Public Fund is as high as 72 billion. We can short stock index futures without any problem."

Stock index futures are different from stocks. They are futures, usually with a leverage of 10 times to 20 times. Usually, when the market plummets, many public funds and private equity funds cannot liquidate all stocks because of the 60% position limit. Will short stock index futures for hedging.

"Well, let's short the CSI 300 Index futures for hedging." Luo Cheng said.

Last night, a management fee of 5000 million was collected. Luo Cheng thought about it, and took 3000 million to invest in its subsidiaries, and the rest was used as daily operating funds.

Soon the stock market will open.

Chengtian Public Fund began to short the CSI 300 Index futures.

The Shanghai and Shenzhen 300 Index futures are quite strong, with a daily trading volume of trillions.

Luo Cheng ordered: "Short with 15 billion funds."

"Yes, BOSS!"

Then everyone began to short the Shanghai and Shenzhen 300 Index.

The margin for shorting one lot is 15, and Chengtian Public Fund directly shorted 1 lots, spending a margin of 15 billion.

The contract value of 1 lot is 3000*300=90.

If there are 1 hands, it is worth 90 billion.

Chengtian Public Fund holds 78.5 billion shares.

If the A-shares plummet today, the losses on the stocks can be completely offset by the profits on the equity futures.

Today, when the stock market opens, the market index is a bit strong, because many major institutions can no longer resist bottom-hunting, but Chengtian Public Fund is different.

Short stock index futures for hedging, because Luo Cheng still believes that the stock market will plummet again today.

And other institutions are doing long stock index futures, just in time to fight with Chengtian Public Fund.

Of course, Chengtian Public Fund is not the only one shorting the Shanghai and Shenzhen 300 stock index futures in the market, there are other institutions with big hot money, even retail investors,

The Shanghai and Shenzhen 300 Index fluctuated extremely violently within an hour of opening, with a lot of buying and selling.

It's 10 am.

The Shanghai Composite Index and the CSI 300 Index began to plummet.
-
1.12% -
2.25% -
3.48% -
4.58% -
5.78%
`````
Chengtian public offering fund makes profits on stock index futures.

And the A-shares are plummeting, the medical sector is also plummeting, and the shares held by Chengtian Holdings are shrinking.

But the money made on stock index futures is more than the money lost on stocks.

The asset scale of Chengtian Public Fund has not shrunk!

"Boss, the stock market fell really hard today."

"The net worth of other public funds must have shrunk a lot."

"I feel like we've made more money on stock index futures than we've lost on stocks."

"Today, Chengtian Public Fund's income must be positive."

"Haha, that's a must."

Today, stocks in the medical sector also followed the broader market in green, falling all the way.

Jiu'an Medical Group, -7.38%
WuXi AppTec Group, -5.54%
Jianfan Bio, -7.12%
Opcon, -8.87%
Mindray Medical, -10.78%
Yuwell Medical, -4.12%
Lepu Medical, -7.12%
····
Retail investors and hot money are all stupid, and their spirits are a little sluggish.

"My mother, the stock market fell so hard today."

"All sectors are plummeting, it's too harsh."

"Woo, I just entered the market yesterday, and it has plummeted today. It's really heartbreaking!"

"Jiu'an Medical Group should not fall any longer."

"Hey, why do I always lose money when I speculate in stocks?"

"I lost money buying funds, and I lost money trading stocks."

"Isn't the medical sector very strong before? Why is there no major organization sweeping the goods today?"

"Where is the main agency for sweeping goods?"

"Ahh! Don't fall any more."

···
When the market closed in the afternoon, the two major market indexes of A shares fell sharply respectively. The Shanghai Composite Index fell 8.78%, and the CSI 300 Index fell 9.95%.
Chengtian Public Fund made a profit of 8.955 million on stock index futures.

The shares held in the medical sector have shrunk by 6 million.

Holding 78.5 billion, it has shrunk by 6 million, that is 7.64%, which is basically the same as the overall decline of the medical sector today.

However, the net profit of Chengtian Public Fund today is 3.955 million.

Chengtian Public Fund released its net value again.

Unit Net Value: 1.2780 (+2.63%)

It suddenly became a dazzling existence. When the stock market plummeted, the net value of other public funds shrank severely.

You must know that the Shanghai Composite Index fell by 8.78% today, and the CSI 300 Index fell by 9.95%. One can imagine how badly the A-shares fell today.

These public funds hold so many stocks, especially stock-type public funds that hold no less than 60% of their positions. When the stock market plummets, they have to hold 60% of their positions and can only carry it down.

Of course, you can also choose to short stock index futures to hedge losses like Chengtian Public Fund.

"Damn it, this Chengtian Public Fund is simply amazing!"

"Oh my god, the A-shares plummeted today. I didn't expect Chengtian Public Fund to grow by 2.6 points. The performance is too strong."

"I see that other public funds have fallen by more than 7 points."

"The lowest public offering fund also fell by 5 points."

"This Canghai public offering fund has dropped by 8 points, which is incomparable with Chengtian public offering fund."

"I bought the Canghai Public Fund before and didn't choose to buy the Chengtian Public Fund. I was so stupid."

'Hey, most of the public offering funds across the country have shrunk today, and even Fang Yida, which is 2 trillion yuan, has lost 6 points. '

"A male god is a male god, and when the stock price plummets, it still keeps growing."

"This Chengtian public offering fund is worthy of all Christians."

···
Offline of Tiantian Fund and the official website of Chengtian Public Fund, they received rave reviews.

In particular, the wealth management companies that subscribed for the Chengtian public offering fund in large sums yesterday were also very fortunate.

"This Chengtian public offering fund deserves additional investment."

"The rate of return is really stable."

"Yeah, yields are still positive in the face of the market's slump."

"I plan to continue subscribing to Chengtian Public Fund!"

"It seems that I have to go to the headquarters of Chengtian Holding Company in person and talk to this legendary investor about the investment."

"My company still has billions of funds and I don't know who to invest in. Perhaps Chengtian Public Fund, which has a very small drawdown rate, is a good place to go."

·
But people in the same industry can tell at a glance that Chengtian Public Fund must have shorted stock index futures for hedging today.

Otherwise, the A-shares have plummeted all day, and your 100 billion-scale stock-type public offering fund still has a minimum position of 60%, how can you actually make a profit?
Public equity funds that did not short stock index futures for hedging, and private equity funds suffered heavy losses.

"This guy must have shorted a lot of stock index futures, otherwise he wouldn't be able to make a profit of 2.6 points."

"There must be at least 1 hands."

"This guy is a ruthless person. He has shorted so many stock index futures, and he is not afraid of skyrocketing and blowing up his position."

"This guy is okay. He shorted the Shanghai and Shenzhen 300 Index for a large amount of hedging."

"The people who bought the bottom of the Shanghai and Shenzhen 300 Index today are miserable."

···
At this moment, Canghai Capital, Liu Canghai's back is covered in cold sweat, because he judged that the market will not fall today.

Public equity funds did not clear their positions, and private equity funds also went to bottom-buying CSI 300 stock index futures, resulting in heavy losses.

"Damn it, it turns out that this grandson is shorting the Shanghai and Shenzhen 300 Index to hedge. No wonder I encountered strong resistance when I went long."

Today, Liu Canghai was only 5000 lots long on the Shanghai and Shenzhen 300 Index, but the private equity fund had a floating loss of several hundred million on the books.

Public offering funds shrank by 7 points.

miserable.

Continue to bear, he believes that the market will soon strengthen.

The people at the Bund Trading Club wanted to vomit blood.

Aier Ophthalmology, held by Fang Xinyu, Li Guanfeng, Zhang Zhihan, and Xiao Xinyi, fell to the limit yesterday. Today, due to the sharp drop in the market, the limit fell again.

The four of them invested 1 million yuan a day in Aier's Ophthalmology Hospital, and as a result, there were two limit-downs.

Yesterday’s price limit shrank by 15%, and today’s price limit has shrunk by 30%, which amounts to a loss of more than 4000 million.

"The net worth of the Chengtian Public Fund has increased by 2.6 points today, which is really abominable!"

"If it wasn't for this kid who disqualified Aier Ophthalmology Hospital yesterday, Aier Ophthalmology Hospital wouldn't have hit the limit today."

"I also bought the stock index futures at the bottom, but I didn't expect the floating loss to be tens of millions."

"Today, the Chengtian Public Fund must have shorted stock index futures for hedging."

"It's amazing, the market has fallen like this, and you dare to short stock index futures to hedge."

(End of this chapter)