Three New Board Fund And Product Design

The three new board market since its inception in 2006, after nearly 10 years of growth and development has been more and more attention from investors in the past two years. Not just institutional investors, but also ordinary investors slowly began to get involved in the new Third Board Market. The three new board originally as China’s unlisted companies to enter the three-panel market share transfer pilot established, however, but later becoming an important part of the OTC market, it changed our OTC market in the country the situation that divide and rule in China and also to learn the advanced experience of the United States and other developed capitalist countries specific initiatives. As of December 2015, the number of companies listed The three new board has reached 5129, there are 295 951 000 000 shares of the total share capital. The total market value is up to 24,584.42 billion Yuan. It can be said that the new three-panel market in China has become more and more important status. There are two ways that individual investors can participate in the new three-panel market, the first one is directly involved in the market investment, but need to have some of the more harsh conditions, such as "investor himself under the name of the previous day day-end market value of securities assets to achieve more than 500 million ";" more than two years experience in investment securities, or have accounting, finance, investment, finance and other related professional background or training experience. " Another indirect participation, this way investors use the way of financial products issued by financial institutions to invest in The three new board curve. It is generally more difficult for investors to meet the conditions directly involved in the investment. However, investors can invest in the three new board by investing in financial products, such as The three new board fund. It is a very important product and have a smaller risk. individual investors can more easily meet the conditions to participate in the investment products and services.This paper is divided into three parts, the first part is a theoretical part, it focuses on the discovery of history of The three new board market, current situation and investment strategy theory. Through researching and learning stock picking strategy of investment, and linking to the actual data acquisition conditions to select the multi-factor stock selection model to build a stock portfolio fund products, and describing multi-factor stock selection strategies in details. The second part is a data analysis and model building section. According to the scale factor (total market value), valuation factors (book value), solvency factors (asset-liability ratio, quick ratio), operational capacity factor (inventory turnover, total asset turnover), profitability factor (gross profit margin, return on equity and revenue growth) factors for these The three new board listed company stock size yields significant effects were analyzed. Depending on the size factor indicators disclosed in the company’s current financial reporting sample ordering, the first for each possible impact factor alone to sort, in addition to the quick ratio from low to high ranking, other indicators are descending sort. Considering the relatively small number of samples, if we need to calculate the average rate of return, then each set of data must reach a certain number. So the sort order were divided into three groups, at the top of a three-point play, followed by a group of beat 2 minutes,1 minute and play the last group, were recorded as group 1, group 2 and group 3. And then calculate the average yield of each semi-annual financial reports of each day, and then every six months, with the average yield of the first group corresponding to Rl minus the average yield of the third group of R3, calculated from the average two the difference between the yield of R, and each yield spreads do about 0 T test and the median test to find out the total market value, book value, asset-liability ratio, quick ratio and total asset turnover five factor by the T-test and the median test, indicating that the stock will yield several factors have a certain impact. Therefore, these five indicators constructed multi-factor stock selection model. The third part is the part of the product design. This section of this article constructed by data analysis multifactor stock selection model to build The three new board Fund. And after Annual Report 2013,2014 and 2014 semi-annual report, this report list the three new board companies one by one which were carried out in accordance with the second part of the three stock portfolio. Every six months based on a stock-picking model select 30 stocks to invest in the first phase and each selected stock is invested 300 million, a total investment of 90 million Yuan. If there is a pre-selected stock I will continue to hold the same, no 30 ranks of the former stock to sell and re-purchase of new shares into the top 30. Finally, we can get that investment in analog after deducting transaction costs the results showed that net investment yield is approximately equal to 64466.8804 million and the investment rate of return is approximately 7.16.This article hopes to have some help and can take example for ordinary investors to invest the three new board market through the fund product design process and results.