After the pilot of margin trading and securities lending was launched, the 130/30 fund based on this business also entered the field of vision of domestic fund companies.

As the most "fashionable" innovative fund in the U.S. market in the past two years, the 130/30 Fund has the characteristics of limited leverage and may become the direction of innovation for China's fund industry in the "era of margin financing and securities lending."

Institutions are the largest buyers. Song Xi, a financial engineering analyst at United Securities, introduced that the so-called "130/30 fund" refers to a fund that uses an investment method that combines active investment and index-based long and short strategies.

Specifically, it is to invest all the fund shares in long positions based on the index, and at the same time, by integrating securities equivalent to 30% of the fund's original net value, short selling this part of the securities, and then using the cash obtained from the short selling to establish long positions.

, the fund's actual portfolio becomes 130% long and 30% short.

"The 130/30 fund can make more effective use of research resources and obtain certain excess returns in a unilaterally declining market." Empirical research conducted by Song Xi shows that from April 25 to June 27 this year, based on the Shanghai and Shenzhen 300 Index

The 130/30 fund constructed as a benchmark lost about 5% less than the broader market.

"If the stock pool is expanded to cover all stocks in Shanghai and Shenzhen, returns can be significantly improved." "130/30 Fund actually walks between mutual funds and hedge funds. Its biggest feature is that the highest short position is limited to

30%, rather than uncontrolled short selling," said Hu Hao, head of financial engineering and derivatives research at CITIC Securities.

At the same time, compared with hedge funds, the 130/30 Fund has clear investment strategies and sufficient information disclosure, so it is recognized by institutional investors such as annuities and insurance companies.

Data from CITIC Securities shows that from 2004 to 2007, the asset size of the 130/30 Fund increased sharply from less than US$5 billion to US$40 billion.

"Pension & Investment" magazine predicts that by 2012, the size of funds using the 130/30 investment strategy will reach more than 25% of US active large-cap funds.

"As the margin trading and securities lending business enters the practical operation stage, 130/30 Fund is expected to become a new direction for product innovation of Chinese fund companies." Hu Hao said.