What is the main fund?
A large amount of funds will have a great impact on the stock price of individual stocks, which is called main funds. The main funds include private placement, Public Offering of Fund, social security, pension, securities, foreign capital (QFII, northbound capital), funds of brokerage institutions, major shareholders of enterprises, etc. Among them, one of the main funds that simply cause all the stock market tremors is the capital from the north and the capital from brokerage institutions. "North" refers to the stocks in Shanghai and Shenzhen stock markets, so the northbound funds include the funds from Hong Kong and international capital flowing into the A-share market. "South" is called Hong Kong stocks, so mainland funds flowing into Hong Kong stocks are also collectively referred to as southbound funds. The reason why we should pay attention to the northbound fund is that there is a strong investment and research team behind the northbound fund, which has more information than many retail investors, so the northbound fund has another title called "smart fund". Many times, investors can get some investment opportunities from the action of going northward for funds.
What effect does the inflow and outflow of main funds have on the stock price?
In normal times, once the inflow of main funds is greater than the outflow, it means that the supply in the stock market is less than the demand, and the stock price will also become higher; The inflow of main funds is less than the outflow, indicating that the supply exceeds demand and the stock price will fall. In terms of stock price trend, it will be greatly affected by the flow of main funds. However, only looking at the inflow and outflow data is not very accurate, and there may also be a large outflow of main funds and a rise in stock prices. A particularly main reason is that the main force uses a small amount of funds to boost the stock price, and then gradually ships in the form of small orders, and retail investors will come and take over, and the stock price will also rise. Therefore, comprehensive analysis is needed. Only in this way can we select the best stocks, set the stop-loss position and take-profit position in advance and follow up the whole process, and take corresponding measures in time is the key for small and medium-sized investors to make profits in the stock market. This article mainly talks about how much the main funds can control, and the content is for reference only.