The fixed increase strategy has always been one of the effective ways for public funds to increase profits. Public funding institutions buy at “discounted prices”, which can often help fund portfolios earn relatively certain returns. Recently, however, the A-share market has changed dramatically, and the effectiveness of the fixed increase strategy has been challenged. A number of technology companies, such as Jiang Bolong, Luwei Optoelectronics, and Siquan New Materials, coincided with the launch of fixed increases in June. A number of public funding agencies participated in the distribution. Afterwards, the technology sector market showed a sharp correction in July. The fixed increase price was higher than the current price in the secondary market, that is, inverted one after another. Even some individual stocks were inverted by more than 28%, and public funding institutions experienced losses. In an interview, the reporter learned that fixed increases are issued through bidding. When the stock price is in an upward cycle, it is easy for participants to bid high prices to ensure distribution, further driving up the issue price; once the market trend changes, fixed increase prices that lack safety pads will bear the brunt of the impact. Recently, the market style has been extreme, and the difficulty of implementing fixed increase strategies continues to increase. Industry institutions believe that they should shift from circuit logic to fundamental logic, and focus on position diversification and trading rules.

The fixed increase strategy has always been one of the effective ways for public funds to increase profits. Public funding institutions buy at “discounted prices”, which can often help fund portfolios earn relatively certain returns. Recently, however, the A-share market has changed dramatically, and the effectiveness of the fixed increase strategy has been challenged. A number of technology companies, such as Jiang Bolong, Luwei Optoelectronics, and Siquan New Materials, coincided with the launch of fixed increases in June. A number of public funding agencies participated in the distribution. Afterwards, the technology sector market showed a sharp correction in July. The fixed increase price was higher than the current price in the secondary market, that is, inverted one after another. Even some individual stocks were inverted by more than 28%, and public funding institutions experienced losses. In an interview, the reporter learned that fixed increases are issued through bidding. When the stock price is in an upward cycle, it is easy for participants to bid high prices to ensure distribution, further driving up the issue price; once the market trend changes, fixed increase prices that lack safety pads will bear the brunt of the impact. Recently, the market style has been extreme, and the difficulty of implementing fixed increase strategies continues to increase. Industry institutions believe that they should shift from circuit logic to fundamental logic, and focus on position diversification and trading rules.