First of all, talk about northbound capital, which is actually called northbound capital. Northbound capital is usually some stock capital that flows from the Hong Kong market only through the Shanghai and Shenzhen ports, and then enters the A-share market from south to north, so the China stock market has formed north-south stocks. Generally, the north here refers to Shanghai and Shenzhen stocks and the south refers to Hong Kong stocks, so the northbound capital is also called northbound capital.
Among them, southbound funds refer to some mainland investors who buy Hong Kong-traded stocks through Shenzhen and Shanghai stocks. Funds can enter the Hong Kong stock market from north to south, so mainland stocks generally flow into the Hong Kong market. This kind of capital is basically called southbound capital, so the actual difference between northbound capital and southbound capital is that it flows from north to south, so the direction of their inflow is different.
In fact, there are many differences between them. Generally, investors with northbound capital and southbound capital are different. Generally, investors of northbound funds are divided into individual investors and institutional investors. Therefore, the investors of capital going northward mainly come from Hong Kong and international investors, and the capital flows are also different. The general flow of funds is to see investors flow into the Hong Kong stock market from north to south through the stocks in Shanghai and Shenzhen stock markets. This process is the last difference. Even the daily limit is different, because the daily limit of funds in the north is generally around 52 billion yuan, while the daily inflow of funds in the south is around 42 billion yuan, so the daily limit is different.