On January 22, the three major indexes fell by more than 2%, and the Shanghai Composite Index once again fell below 2,800 points. Multiple indexes adjusted to new lows, causing A-shares, funds, Snowball, and rumors of "Jiang Shuying Snowball to burst into securities firms" and other 9 The entry was on the A-share hot search list.
Yesterday morning, the market was still discussing market protection funds and quantitative hedging. In the afternoon, rumors that "actress Jiang Shuying went to the headquarters of Shenwan Hongyuan because of Snowball's liquidation" quickly spread on social platforms, and female stars and Snowball liquidated their positions. With the two major traffic tags, relevant screenshots and photos were quickly spread.
Source of screenshots uploaded online: Social media platform
According to the Associated Press, Jiang Shuying had indeed invested in snowball products in Shenwan Hongyuan before, but yesterday it was reported on the Internet that he called the headquarters of Wanhongyuan Group because of the "explosion". Fake news, the so-called related pictures of the scene were also taken at a certain filming location, not at Shenwan Hongyuan. Driven by the traffic of
female celebrities, the entry of Snowball products has once again attracted widespread attention.
"Snowball structure" financial products have attracted much attention from the market in recent years due to their higher returns. However, due to the recent weak market performance, the risks of this product have gradually become apparent. For investors who purchase such financial products, Said that the current "snowball" has obviously become a hot potato.
Previous CSI quotation data showed that snowball structure products have already gained about 7%, and the points are relatively scattered and have little impact on the market. With the decline of the CSI 1000 and CSI 500 indexes, according to the research reports and calculations of many securities companies such as CICC and Zhejiang Merchants, Snowball products have ushered in the second concentrated knock-in zone. Recently, futures discounts have deepened and fundamentals have deepened. The expansion of the difference also verifies this conclusion.
How big is the scale of this entry? What impact will it have on the market? Will it trigger a chain reaction of "the more it falls, the more it sells, and the more it sells, the more it falls"?
In this regard, many interviewees pointed out that Snowball's relatively concentrated knock-in impacts the futures market, but if all are based on trading strategies such as the gentle release of risk exposure and futures arbitrage, the transmission from the futures market to the spot market will not be effective. Smooth, so the direct impact on A-shares is limited. But something unexpected happened on the 22nd. As the snowball hit, the basis spread of futures expanded. Quantitative institutions were worried about losing money. Products such as dma took the initiative to reduce leverage and sell small tickets, causing stocks to plummet in late trading.
The market is not all bad news. First, the protective funds are still acting. On the 22nd, the total transaction volume of the four Shanghai and Shenzhen 300 ETFs throughout the day was 37.737 billion yuan, setting a recent transaction record; second, northbound funds bought against the trend in late trading. Net buying totaled 1.047 billion yuan throughout the day, ending six consecutive days of net selling. Among them, the net purchase of Shanghai Stock Connect was 739 million yuan, and the net purchase of Shenzhen Stock Connect was 309 million yuan. What is the
snowball product?
What exactly is the Snowball product? How to implement "knock in" and "knock out"?
Snowball product is a common name for products with snowball structure income characteristics. The snowball products that ordinary investors are exposed to are actually various asset management products issued by asset management institutions, including trust products, private equity funds, asset management plans, etc. The snowball structure is essentially an exotic option with knock-in and knock-out conditions. The final return depends on the performance of the underlying asset and whether the knock-in and knock-out events occur. If the price of the underlying asset rises to a certain level (knock-in price), the Snowball product will be terminated early, and investors will receive fixed income during the duration; if the price of the underlying asset drops to a certain level (knock-in price), the price of the underlying asset will be based on the expiration date. The price determines the profit and loss situation, and investors may bear the risk of the underlying asset falling; if the underlying asset never touches the knock-in and knock-out price, investors will receive fixed income throughout the product period.
Generally speaking, investors buying Snowball products are similar to investors selling an "insurance" with effective conditions to a securities company. The income from Snowball products that investors receive mainly comes from the "insurance premiums" paid by securities companies. . What does
knock in and knock out mean in layman’s terms? According to industry insiders, Snowball products are a type of asset management product that have become popular among securities companies in the past two years.Take, for example, a one-year snowball product with a knock-in price of 80%, a knock-out price of 103%, and a yield of 15%, which is linked to the CSI 500 Index. If an investor purchases this snowball product for 1 million yuan, he is actually negotiating with the brokerage firm. Betting on the trend of the CSI 500 Index for one year, the income situation is divided into the following situations:
(1) If the CSI 500 Index rises by more than 3% at any time within a year, the brokerage company will immediately cash in the annualized return of 15% to investors. , the annualized rate of return is converted based on the actual product duration, and the contract is terminated;
(2) If the index falls below 80% on a certain day, but rises by more than 103% within a year, investors can still get the same situation as above The same annualized return of 15%;
(3) If the CSI 500 Index has been fluctuating between 80% and 103%, investors can still get an annualized return of 15%;
(4) If the CSI 500 Index If the index first falls below 80%, and then only rises to between 100% and 103%, investors can only get back their principal, and the income is 0;
(5) If the index falls below 80%, and it never fails later. If it rises back to 100%, then investors will have to bear all losses from the index drop. For example, if it falls by 30%, investors will lose 30%.
Snowball comes to the second concentrated knocking area
. At this point, what is the distribution of the existing snowballs? Have you reached the second concentrated knocking area?
