Core Insights - The recent release of the "Action Plan for Promoting High-Quality Development of Public Funds" by the China Securities Regulatory Commission has caused significant industry impact, with Southern Fund's long-termism being highlighted as a benchmark [1][2] - There is a notable phenomenon in the A-share market where stocks often rally ahead of positive news, leading to price declines once the news is officially announced, indicating a unique "front-running" behavior among institutional investors [3][5] Market Truth Behind the News - Ordinary investors need to understand why institutional investors can often position themselves ahead of the same positive news, which is attributed to the "front-running" phenomenon in the A-share market [3] - Unlike foreign markets that trade based on known information, the A-share market tends to price in news before it is publicly announced, resulting in many retail investors suffering losses due to this information asymmetry [3] Unveiling Institutional Fund Dynamics - The comparison of stock performance reveals that while one stock appears to be rising, it may actually be a false signal, whereas another stock may be declining but has underlying strength [5][10] - The key to understanding market movements lies in tracking institutional fund flows, as their trading behavior is driven by cost considerations, and recognizing changes in these behaviors can help identify potential opportunities and risks [10] Value Discovery Through Quantitative Data - Southern Fund's success in practicing long-termism is largely attributed to the empowerment from digital platforms that enable quantitative analysis of investment behavior, ensuring scientific decision-making [11] - Instead of chasing delayed news, investors are encouraged to focus on real-time trading data, such as "institutional inventory," which can provide deeper insights into market dynamics [11][12] Future Outlook - As regulatory policies improve and market mechanisms mature, the "front-running" phenomenon may diminish, but information asymmetry is expected to remain a prominent feature of the A-share market [12] - This situation emphasizes the importance of valuing quantitative data, as indicators like "institutional inventory" offer a unique perspective for market observation, similar to how Southern Fund leverages digital platforms for research [12]

Group 1 - Major financial institutions like JPMorgan, Citigroup, and Morgan Stanley have recently increased their holdings in H-shares such as CATL, ZTE, and WuXi AppTec, indicating a growing interest in these stocks [1] - JPMorgan's long position in CATL H-shares rose from 5.98% to 6.06%, while Morgan Stanley's increased from 4.96% to 6.05% [1] - The Hong Kong stock market showed strong performance in August, with the Hang Seng Index rising by 1.23% and the Hang Seng Tech Index increasing by 4.06% [3] Group 2 - There is a concern that retail investors often enter the market after institutions have already made their moves, leading to potential losses for these investors [5] - A notable example of institutional behavior is highlighted, where foreign institutions claimed to avoid thematic stocks but were found heavily invested in restructuring concept stocks after earnings reports were released [6] - The concept of "institutional inventory" is introduced as a key indicator of institutional trading activity, suggesting that active participation by institutions can signal future stock performance [9][11] Group 3 - The article emphasizes the importance of understanding the true flow of funds rather than relying on news, which often lags behind actual market movements [14] - It is suggested that retail investors should focus on analyzing data that reveals institutional actions to avoid being misled by superficial news [14] - The conclusion stresses that those who can access and interpret real data will have a competitive advantage in the market [14]

Group 1 - The A-share market saw a continuous increase in financing balance from July 7 to July 16, totaling an increase of 44.038 billion yuan, indicating active participation from financing clients in sectors such as non-bank financials, computers, and non-ferrous metals [1] - Despite the overall positive trend, the Shanghai Composite Index remained flat since July 10, suggesting the presence of many volatile stocks and ongoing capital participation, which may lead to future market surges [1] Group 2 - Retail investors often misinterpret market trends, believing that all price movements are positive; however, 80% of price increases typically occur within 20% of the time, leading to potential mis-timings in buying and selling [3] - The "institutional inventory" data indicates active institutional trading; when this data is high, it suggests longer participation from institutional funds, which can be crucial for understanding market dynamics [5][6] Group 3 - In the current regulatory environment, institutions cannot manipulate stock prices as openly as before but can still use "shakeout" strategies to clear out weak hands, as evidenced by a recent innovative drug stock that experienced a significant drop before rebounding [7] - The recent "eight consecutive increases" trend highlights that stocks like Dongshan Precision and Zijin Mining had institutional inflows as early as June, while some speculative stocks showed no institutional interest, emphasizing the importance of data analysis in investment decisions [9]