In the stock market, capital is the most important, and capital is the key to decide the rise and fall. Capital inflow and capital outflow mean rising; Capital outflow means falling. And there are many kinds of capital, such as northbound capital. Let us know what this north-facing capital is and what it means.

What is northbound capital and what do you mean?

Northbound capital, also known as northbound capital, refers to the capital flowing from Hong Kong stocks into the mainland stock market. It can also be said that Hong Kong capital and international capital enter the A-share market. The corresponding northbound capital is southbound capital, which refers to the capital flowing into Hong Kong stock market from mainland stocks. For A-share investors, northbound funds are money flowing in from outside, which is of positive significance to us. When the capital inflow from the north increases, the stock market generally rises.

For A-share investors, the data of northbound capital is the most important, because for us who invest in the stock market, the flow of northbound capital is a crucial factor. In the market, the flow of funds going northward has always been the weather vane for investors to judge the market.

There are three important reasons for going northward for capital:

1, northbound capital is the most transparent and easily observed structural capital. Because the flow of northbound funds needs to be carried out in Hong Kong, relevant information will be disclosed, and it is easy to obtain the information of northbound funds.

2. There is a strong investment and research team behind Northbound Capital, which holds information that ordinary investors don't know. About 70% of northbound capital is foreign capital, and they dare to invest in foreign markets, which are generally very strong.

3. The risk preference of northbound capital is low, which far exceeds the market in terms of investment performance in the past five years.

After reading the above introduction, I believe you have a deeper understanding of the capital going north. Finally, it can be concluded that the northbound capital can be said to be the capital flowing from the Hong Kong stock market to the mainland stock market, and after amplification, it refers to the capital flowing from foreign capital to the China market. Investors should pay attention to the flow of funds when studying the stock market. At the operational level, investment funds need not worry too much, but they should abide by three points: valuation, position and discipline.