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Essential Institutional Information

The key reason why institutional investors can make relatively rational decisions is that they have comprehensive, timely, and accurate information sources. Understanding these information sources and learning how to obtain and analyze them will help individual investors approach institutional decision-making quality.

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Three Information Pillars for Institutional Decisions

Data

News

Knowledge

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Analysis of Core Data Indicators

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Key Fundamental Indicators Focused by Institutions

When analyzing stocks, institutional investors focus on the following fundamental indicators:
  • P/E (Price-to-Earnings Ratio): The current reasonable P/E of the market is about 18.8 times, below which may be undervalued
  • ROE (Return on Equity): Excellent companies usually maintain ROE above 15%
  • Gross Margin/Net Margin: Reflect the company’s profitability and cost control capabilities
  • Cash Flow Status: Companies with持续 positive operating cash flow have healthier finances
  • Asset-Liability Ratio: In a down economy, companies with low debt ratios have stronger risk resistance
Access Channels:
  • Yahoo Finance: Provides fundamental data for major global markets
  • Listed company financial reports: Available on exchange websites or company official websites
  • Financial data terminals: Such as Wind, Choice, etc. (some functions require payment)

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Policy and News Interpretation

Institutional investors focus on the interpretation of policies and news, especially in the 2025 environment where policies have a greater impact on the market:

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Key Policy Areas

  • Monetary Policy: Operations such as RRR cuts and interest rate cuts directly affect market liquidity
  • Fiscal Policy: Tax cuts, fee reductions, infrastructure investment, etc., affect economic growth and specific industries
  • Regulatory Policy: Changes in financial regulatory policies may trigger short-term market volatility
  • Industrial Policy: Support policies for specific industries (such as new energy, semiconductors)

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News Acquisition and Verification

  • Official Channels: Information released on official websites of government departments, central banks, etc.
  • Research Institutions: Research reports released by securities firms and consulting companies
  • Industry Experts: Obtain expert views through conferences, research, etc.
  • Cross-Validation: Verify the authenticity and reliability of information through multiple channels
Case Analysis: In June 2025, the market expected low-base earnings growth, and institutional investors laid out related sectors in advance, gaining significant returns.

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Knowledge Framework for Institutional Decisions

Institutional investors’ decisions are based on a profound knowledge foundation, mainly including:
  1. Market Theory: Theoretical frameworks such as efficient market hypothesis, behavioral finance
  2. Investment Strategies: Applicable scenarios of different strategies such as value investing, growth investing, momentum investing
  3. Risk Management: Various risk measurement and management methods
  4. Asset Pricing: Understanding the pricing logic of different asset classes (stocks, bonds, commodities, etc.)

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Knowledge Acquisition Channels

  • Professional Books: Classic investment works such as “The Intelligent Investor”, “A Random Walk Down Wall Street”, etc.
  • Research Reports: In-depth research reports released by securities firms and fund companies
  • Industry Conferences: Attend industry summits, seminars, etc. to obtain the latest views
  • Continuous Learning: Continuously update knowledge through online courses, lectures, etc.

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Comprehensive Decision-Making Process of Institutions

Institutional investors’ decisions are not based on single information, but are made after comprehensive analysis of various types of information:
Collect information from multiple channels and screen it based on reliability and relevance
Use various analysis methods (fundamental, technical, macro) to conduct in-depth analysis of information
Based on analysis results, develop specific investment strategies, including asset allocation, industry selection, stock screening, etc.
Assess potential risks and develop corresponding risk control measures
Execute investment strategies and adjust them in a timely manner according to market changes and new information

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How Individual Investors Can Obtain Institutional-Level Information

Although individual investors have disadvantages in information acquisition, they can improve information quality through the following methods:
1

Utilize Free Tools

Use free tools such as Yahoo Finance and TradingView to obtain basic data
2

Follow Quality Media

Follow professional financial media such as Caixin and Wall Street Journal to obtain in-depth analysis
3

Study Institutional Research Reports

Read free brokerage research reports to understand institutional analysis frameworks and viewpoints
4

Establish Information Screening Mechanism

Learn to distinguish the authenticity and importance of information, avoid information overload
5

Join Investment Communities

Communicate with other investors, share information and viewpoints
In the “Experiment” module, we will teach you how to use this information for actual investment decisions, from simple signals to complete strategies, gradually improving your investment capabilities.