【TEJ Dictionary】QFIIs/SITEs/ Prop desk traders (1)
‧ Learn about the QFIIs, SITEs and Prop desk traders
🔸Preface🔸
In the stock market, there is a group of people who hold the key of the rise and fall of stocks. When they start buying stocks, the price will rise, and when they start selling stocks, the price will fall. These groups of people are QFIIs, SITEs and Prop desk traders. For the normal investors, the trading trend is often the basis for researching future changes in the stock market. This kind of analysis method of predicting the stock price by the three major corporate trends is the bargaining chip analysis. This article will take everyone to understand who are the QFIIs, SITEs and Prop desk traders and what impact will each of them have on stock market?
🔸Highlights of this article🔸
📍 Introduce the QFIIs, SITEs and Prop desk traders
📍 Operate TEJ Pro database
✨QFIIs, SITEs and Prop desk traders✨
In the stock market, legal persons refer to companies, banks, and profit-making organizations. These organizations have sufficient funds and have a great influence on the stock market. The three major legal institutions refer to the QFIIs, SITEs and Prop desk traders
Compared with retail investors, the funds of three major corporate are huge and concentrated. They are all the key roles in the stock market. We will take you to understand who QFIIs, SITEs and Prop desk traders are.
QFIIs: long-term investment
QFIIs are foreign investment institution or fund, including Goldman Sachs, J.P. Morgan and Citigroup Global, etc. No matter the trading volume or capital is the largest proportion of the three major legal entities. QFIIs usually operate large and medium-sized stocks and focus on long-term layout. They will evaluate the future share prices of each company based on fundamentals and industrial structure. The capital of QFIIs is huge. It will take several days to buy and sell to reach the target quantity. So the holding time will be relatively long. In addition, the government will also limit the amount of their investment, and the government’s approval is required for entry and exit.
SITEs: mid-term investment
SITEs are domestic securities investment funds, including Yuanta securities investment, Fubon Asset management and KGI securities investment, etc. These companies will issue funds to allow the public to buy and gather all the funds. The public invests in the stock market through professional managers. At the same time, investors need to pay the handling fees and management fees. Compared with QFIIs, SITEs have less capital and the layout is mostly mid-term. They usually operate on small and medium-sized stocks with themes and fundamentals. The holding time ranges from several days to several months. The price of this type of stock is prone to surge in a short period of time due to trading volume.
Let’s introduce the end-of-season accounting that you often hear. The performance of funds raised by the SITEs will be calculated at the quarterly settlement. In order to make their performance better than other managers, they will raise or clear their holdings at the end of each quarter. However, it should be noted that regulations restrict the proportion of individual stocks that cannot exceed 10% of the net value of the fund, so the total shareholding ratio of this stock is usually less than 15%. Therefore, if investors find that their shareholding ratio is getting closer and closer to 15%, the time for SITEs to sell is close, and the stock price will also fall. Investors need to pay more attention on this situation.
Prop desk traders: Short-term investment
Prop desk traders are the investment department of a securities company, including Yuanta securities, Capital securities and Waterland securities, etc. They use their own capital to invest in the stock market and can not engage in credit transactions. Comparing QFIIs and SITEs, Prop desk traders have low capital levels and short operation cycles, and usually prefer more active stocks, such as popular stocks or theme stocks. Most of these stocks have small equity and have large fluctuations, and the probability of making profits is relatively high.
✨Operation of TEJ Pro✨
The biggest advantage of QFIIs, SITEs and Prop desk traders is they holding the funds, information and research resources. They have a better chance to understand the company’s operating conditions earlier than most retail investors, and then decide whether to invest or not. This information is displayed in the daily trading information. Then, how do we know their movements from the chip information released every day? We can find the trading information of the three major legal institutions that TSE publishes daily from our TEJ Pro database. However, the information released by TSE is sorted by the number of transactions, or only the total excess amount of transactions is listed. Such information is not sufficient for analysis. TEJ Pro provides some value-added services. These data are calculated by us. The process of calculation will be introduced in detail in the next article. Here we will introduce the operation of TEJ Pro database. We will use TSMC (2330) on 2021/8/3 as a demonstration.
1️⃣ Click the Qfii/Dealer/Invest. Buy/Sell from the TEJ Equity
2️⃣ Enter TSMC’s code number 2330 through the drop-down menu above, you can quickly find information about TSMC
3️⃣ Click on the column through the upper menu to set
4️⃣ Enter 20210803 in the date section in the upper right corner, you can search for the data of that day
5️⃣ After the setting is completed, you can get the data of TSMC (2330) in 8/3
🔸Conclusion🔸
Although most of us are retail investors, the amount of funds and information are not as good as the three major legal institutions. However, we can observe the over-sale conditions of the three major legal institutions through the data on the chip analysis, so that stock investment can become our own stable profit. Today, we introduce the knowledge about QFIIs, SITEs and Prop desk traders. The other information will be shared with you in the next few articles.
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