Southbound trading and mutual fund recognition are two common ways for individuals to directly participate in overseas investments.

Southbound Stock Connect refers to mainland investors directly buying and selling stocks listed on the Hong Kong Stock Exchange through mainland securities companies through the Shanghai and Shenzhen Stock Exchanges.

Of course, there are certain restrictions. You can only purchase stocks within the specified range, daily quota and total quota.

Mutual recognition of funds means that funds registered overseas and supervised by local regulatory agencies are allowed to be publicly sold to local residents, with an initial quota of 300 billion yuan each for incoming and outgoing funds.

Hong Kong stocks refer to stocks listed on the Stock Exchange of Hong Kong in the Hong Kong Special Administrative Region of the People's Republic of China.

Hong Kong's stock market is more mature and rational than the mainland's, and is more responsive to world trends.

If mainland stocks are listed in both the mainland and Hong Kong, forming an "A+H" model, the trend of A shares can be judged based on its situation in the Hong Kong stock market.