What is the north to the capital? In fact, the northbound capital represents the Hong Kong area in the southern waters of China. Because of the geographical location between Hong Kong and the mainland of China, the investment capital from Hong Kong has become? Northbound funds? .
What are the characteristics of northbound funds? Northbound capital represents mature market investment ability. Since it has received such attention, the capital going north must have certain characteristics to influence investors' psychology. ? Northbound funds? From a mature stock market that has been in line with the international stock market for decades.
Although Hong Kong's stock market is not as mature as that of the United States, Hong Kong needs to be in line with international standards because it was a British colony in the early stage. At the same time, Hong Kong is also the most open place with the best financial development in China. Therefore, investors here have more mature market game capabilities.
Northbound capital represents the profitability supported by experience. Relatively speaking, the mature market has a long time, and its ability in stock selection, timing and stock market prediction is better. Therefore, northbound funds represent the profit direction in the investment process.
First of all, A-shares are relatively closed compared with mature foreign stock markets. As overseas hot money, they want to gain profits by entering the China stock market, so the capital from the north has become the only channel for them to enter the A-share market. Northbound capital can be regarded as an attitude of overseas mature market investors. When the outflow of capital from the north is greater than the inflow, it shows that overseas mature markets have a negative view of the mainland market, and when the inflow is greater than the outflow, the opposite is true.
Secondly, compared with foreign investors, mainland investors are not mature and confident. After all, the A-share market developed late, and at the same time, it is controlled by the relevant departments of China government, so it can't make a good value investment like investors in foreign mature markets, and its investment concept, risk control ability and information acquisition ability are weak. Therefore, many investors in the A-share market trust the trend and choice of capital going northward.
Finally, the superposition effect. According to the general law of the stock market, when some people believe in the changes brought about by the capital going northward, it is likely to bring the same expected changes, thus deepening the influence ability of the weather vane of the capital going northward and getting twice the result with half the effort. That is to say, when the northbound capital is regarded as a direction by the market, its influence on the Shanghai and Shenzhen stock markets will gradually be reflected to the stock market investors in the form of double speed.
In the process of stock trading, northbound funds are only a reference data, so don't be too persistent. I think it will be better to look at the stock market with emotional combination technology!