The difference between southbound funds and northbound funds is mainly concentrated in two aspects, namely, different investors and different daily quotas.
First, investors are different.
Investors in southbound capital are mainly domestic individual investors and institutional investors, while investors in northbound capital are mainly from Hong Kong or international investors.
Second, the daily limit is different.
Southbound funds include funds going to Hong Kong through Shanghai Stock Exchange and Shenzhen Stock Exchange. The daily limit of Shanghai-Hong Kong Stock Connect and Shenzhen-Hong Kong Stock Connect is 42 billion yuan each. Northbound funds include funds from A shares through the Hong Kong Stock Exchange. The daily quota of Shanghai Stock Connect and Shenzhen Stock Connect is 52 billion yuan each.
Judging from historical data, the market value of capital positions in the north performed well. Since the trading of Shanghai Stock Connect was started on October14 and June 1 1 June, the northward capital continued to flow in for a long time, especially on October/9, and it made an accurate operation judgment three times in advance, showing a keen sense of smell. With the passage of time, northbound capital has more and more influence on the direction of market capital, and many funds will follow. Because most of the "northbound funds" are invested by overseas institutions, and institutions generally have relatively strong financial strength, specialized company research teams and information collection teams, which are more professional and more advantageous than ordinary retail investors in investment. Therefore, northbound capital is also called "smart capital".