Northbound funds are funds for Hong Kong investors to buy mainland A shares through Shanghai-Hong Kong Stock Connect or Shenzhen-Hong Kong Stock Connect. Of course, there are also southbound funds, that is, mainland investors buy Hong Kong Stock Connect shares through Shanghai-Hong Kong Stock Connect. A large amount of funds entering the northern A-share market may bring shocks to A-shares, and there will be a trend of low opening.
What are the funds for going north?
Including Shanghai-Hong Kong Stock Connect and Hong Kong Stock Connect, Shanghai Stock Connect refers to the securities trading service company established by the Hong Kong Stock Exchange through Hong Kong brokers according to the entrustment of investors. Declare to the Shanghai Stock Exchange (order delivery) to buy and sell stocks listed on the Shanghai Stock Exchange within the prescribed scope; Hong kong stock connect means that investors entrust mainland securities companies to report to the hong kong stock exchange for trading in stocks listed on the hong kong stock exchange through a securities trading service company established by the Shanghai stock exchange within the prescribed scope?
Generally speaking, there are three kinds of funds: the first is the index passive fund brought by MSCI; Second, all kinds of investment funds; The third is the vast number of institutions and investors in Hong Kong. If the holding time of these funds is sorted, the first category is the longest, the second category is the shortest and the third category is the shortest. The inflow and outflow of funds going northward every day is mainly the result of the operation of the third type of funds.
In fact, the core of Northbound Fund is msci Index Fund, which can be used to buy Hong Kong stocks and is a long-term investment fund. Because of these funds, the market can develop more stably and the bottom will slowly improve. The corresponding investment funds are funds that invest in US stocks and Hong Kong stocks. The investment of these funds likes to study the fundamentals first, and then make various corresponding decisions. Therefore, the stocks allocated are not bad, and there will be fewer stocks that explode. The third kind of funds is the so-called investor funds, which come in through the channel of Hong Kong Stock Connect, buy when the market is undervalued and sell when the market is overvalued.
In the past, such funds were not valued because the approved amount was relatively small. With the increase of the quota last year, it can now affect the market. According to statistics, in the first quarter of this year, foreign investors were professional institutional investors with the fastest growth in market value and shareholding, and the market value of tradable shares was about 1.62 trillion yuan, exceeding the insurance funds 1.58 trillion yuan, ranking second among all professional institutional investors, second only to publicly raised funds. You should know that the operation of this fund is active, and you can get a lot of income by following its operation in the band.
Is the inflow of capital northward good or bad? Capital flowing northward is not a good thing. Because capital going northward will inevitably put a lot of pressure on the market. The most obvious reflection may lead to a decline in the relevant stock price, and more seriously, it may lead to a sharp decline in the stock price. On the contrary, capital inflow is a good thing, which is beneficial to the stock market and can push the stock price up.
Combined with the outflow of funds from the north, it shows that Hong Kong and international funds have been sold out in the trading market. Once the capital goes northward, this outflow means that foreign-funded enterprises or investors are not optimistic about the development potential of the A-share market, or even take a negative attitude, thinking that the A-share market will go downhill in the future, which will easily mislead some A-share investors into thinking that the A-share market is unfavorable. Either the A-share market is really affected by the global stock market, and the state is getting more and more depressed. Foreign investors withdraw from the A-share market for risk reasons. For this kind of operation, investors should pay attention to their own operations.
Users can't always pay attention to northbound funds when investing in stocks. Judging the trend of the stock market needs comprehensive consideration. Only in this way can we make money by buying and selling stocks. When users invest in A shares, they must use their own spare money and cannot borrow money to invest, so as not to affect their personal life after losses.
When buying a stock, users should fully understand the recent trend of the stock, observe whether its indicators are within a reasonable range, and then decide whether to buy the stock. After buying, always pay attention to the change of stock price and sell it at the right position.
Users must set the take-profit price and stop-loss price after buying stocks, and sell them in time when they reach the take-profit price, so as to ensure their own profits. When the stock you buy falls, users should sell it at the stop loss point, which can prevent the loss from further expanding.
The difference between going north and going south
1. The flow direction is different: the capital flows northward to China and Hong Kong market, and the international market capital flows into the mainland Shenzhen Stock Exchange market and Shanghai Stock Exchange market; The capital flows in the south are often in the opposite direction, from the Shenzhen Stock Exchange and Shanghai Stock Exchange in the mainland to the Hong Kong market.
2. The fund investors are different: most of the fund investors going north are investors in Hong Kong or the international market; Investors in southbound funds are investors in the mainland stock market;
3. The amount of funds is different: 52 billion in the north and 42 billion in the south.