"North" and "South" actually come from geographical location. When we open the map of China, we can see that Hong Kong is located to the south of Shanghai and Shenzhen, so mainland funds flow to Hong Kong, which we call "southbound funds".

Shanghai and Shenzhen are located in the north of Hong Kong, so Hong Kong funds flow to the mainland. We call it "northbound capital", which is what we often call "foreign capital" and "smart money".

Southbound capital: Mainland capital flows to Hong Kong, which corresponds to Hong Kong Stock Connect.

Northbound capital: Hong Kong capital flows to the mainland, corresponding to Shanghai Stock Connect and Shenzhen Stock Connect, so "northbound capital = Shanghai Stock Connect+Shenzhen Stock Connect".

Northbound capital and southbound capital