B[Xiong Yuan, Chief Economist of Guosheng Securities: Various reforms in the capital market will reverse the past narrative of "emphasis on financing but light on returns"] On October 25, Xiong Yuan, Chief Economist of Guosheng Securities, pointed out in a recent interview with reporters that the governance reform of listed companies focuses on consolidating the main responsibilities, strengthening information disclosure and accountability for violations, and improving dividends and buyback supporting constraints. Promote enterprises to shift from a single financing orientation to equal emphasis on value creation and shareholder returns, continue to reduce governance risk discounts, and repair the foundation of investor trust; at the same time, the shareholding reduction system differentiates constraints and penetrates supervision to curb disorderly arbitrage and detour reductions, promote the convergence of the interests of major shareholders and small and medium-sized investors, reduce irrational selling pressure in a weak environment, and stabilize valuation expectations. The rules are predictable and risk pricing is becoming more rational. Data show that in the first half of the year, the net profits of listed companies increased by 19.5% year-on-year, hitting a new high in the past three years; at the same time, dividend buybacks during the year reached 2.7 times that of IPOs and refinancings, achieving simultaneous growth in profits and returns.
In Xiong Yuan’s view, the key to boosting market confidence in the medium and long term lies in the long-term and stable capital structure. The long-term money entry mechanism for A-shares continues to improve, and patient capital such as social security, insurance, and annuities continue to enter the market. Data shows that in recent years, the circulating market value of A-shares held by medium- and long-term funds has increased by more than 80%. This type of funds has a long assessment cycle and is based on verifiable cash flow and profits, which helps optimize the market capital structure, weaken short-term homogeneous transactions, and reduce market volatility. In addition, Xiong Yuan further stated that the coordinated efforts of various reforms in the capital market are reversing the past negative cycle of "emphasis on financing but light on returns", gradually forming a virtuous cycle in which listed companies improve their quality, improve their return mechanisms, and are willing to allocate long-term funds. Institutional dividends are slow variables, but reforms can continue to increase the certainty of long-term returns for A-shares, guide market pricing back to fundamentals, and consolidate mid- and long-term allocation confidence. (Daily Economic News) B[Goldman Sachs: Hedge funds are reducing their holdings of technology stocks at the fastest rate in at least a decade] On October 20, data from Goldman Sachs’ prime brokerage business unit showed that hedge funds were reducing their holdings of technology stocks at the fastest rate in at least a decade.截至10月15日的五个交易日，对冲基金削减科技股仓位的幅度创高盛2016年开始统计以来最大。与此同时，高盛全球银行与市场部门的一份报告显示，总交易活动下降速度创近三个月来最快。 Hedge funds sold off amid a global rout in technology stocks. . As AI-themed trading ebbs globally, the Nasdaq 100 fell 5.5% last week, its biggest drop since April 2025. Technology stocks were the worst-performing sector in the MSCI World Index over the five trading days covered by Goldman Sachs data. Goldman Sachs data shows that global equity net selling flows have reached two standard deviations of flows over the past year. The information technology sector's net sales were far ahead, with the information technology sector's net sales being the most prominent, and the semiconductor sector's sales being the largest. However, hedge funds still hold large positions in technology stocks. According to the report, the technology sector accounts for 23.5% of global Prime holdings, and net allocation to the sector is still at the 90th percentile over the past five years. But hedge funds have become more cautious. Net leverage, a measure of the extent to which long positions outnumber short positions, fell to a one-year low of 48.6%.
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