The institutions in China stock market generally refer to Public Offering of Fund, private equity funds, social security funds, brokers, QFII, insurance companies and financial companies established by some large state-owned enterprises. (1) Institutions in the stock market are often linked to the main force, which refers to the ultimate owner who holds a large number of chips in the stock. (2) The main institution does not let others know how many chips it holds, and according to the legal restrictions on securities, a main institution often has multiple accounts.
Before heavy positions, listed companies generally do professional research and the stock quality will be higher. Moreover, many institutions invest in stocks mainly to stabilize profits. Therefore, institutional heavyweights will have strong control and will make the stock trend more stable. However, when heavy institutions ship or wash dishes, it may lead to significant changes in the stock price. Generally speaking, institutional heavyweights will attract the attention of market investors. Investors in the market basically observe whether there are institutional heavy positions through the regular announcement information of listed companies. During the unpublished time of listed companies, institutional positions may change.
1. Do institutions buy stocks?
It is positive for institutions to buy stocks, which needs to be considered comprehensively according to the actual situation:
When institutions are optimistic about the stock and think that it has great development potential in the later period, or institutions know in advance that there will be significant good news for individual stocks, it is a good thing to buy in advance.
If the institutions that buy individual stocks prefer short-term speculation according to their previous operating style, it is a bad thing for the stocks they buy to rise or fall in the short term; If the buying institution is a social security fund, the basic principle of its investment operation is to realize the appreciation of the fund assets on the premise of ensuring the security and liquidity of the fund assets, which will lead to the slow rise of the stocks it buys, which is a good thing. In addition, when the market is depressed and individual stocks plummet, in order to reduce losses and throw out their chips, institutions will buy some first to attract retail investors in the market to distribute their chips, which is also a bad thing.