What is main capital?
Such funds that are too large and have a great impact on the stock price are collectively referred to as main funds, including private equity funds, public funds, social security, pension funds, Central Huijin, securities funds, and foreign capital (QFII, northbound funds)
, securities firm funds, hot money, corporate major shareholders, etc.
Among them, one of the main funds that is more likely to cause fluctuations in the entire stock market must be northbound funds and securities agency funds.
Generally, "North" refers to stocks in the Shanghai and Shenzhen stock markets, so the Hong Kong funds and international capital flowing into the A-share market are called northbound funds; "South" represents Hong Kong stocks, so the mainland funds flowing into Hong Kong stocks are
It’s called southbound funding.
The reason why we should pay attention to northbound funds is because there is a strong investment research team behind northbound funds. On the one hand, they are familiar with information that many retail investors do not know. Therefore, another name for northbound funds is "smart funds". In many cases, some investments
Opportunities we can get from the action opportunities of northbound funds.
What do you think of the main flow of funds?
1. Check the net inflow and outflow of large orders on the trading software. The net inflow of large orders may indicate the entry of main funds; the net outflow of large orders may indicate the departure of main funds.
Another example is Huashun's real-time analysis of daily capital outflow statistics. If a stock has continuous outflows for several days, the main force has left the market in the short term.
2. Look at the changes in the transaction volume. The transaction volume represents the actual amount. If the transaction volume gradually increases, it may indicate that the main funds are net inflowing; if the transaction volume is gradually decreasing, it indicates that the main funds may be net outflowing.
3. Look at the flow of northbound funds and southbound funds.
Northbound funds refer to mainland China's northbound funds. Many trading software will show the direction of mainland China's northbound funds. Net outflows indicate the departure of foreign capital; southbound funds refer to funds flowing from mainland China to Hong Kong. If southbound funds withdraw from the Hong Kong stock market,
Then it will flow into the domestic stock market.
4. In addition, investors can also conduct technical analysis through the K line. Generally, the main capital outflow on the K line may form a large Yin line and a small Yin line with continuous decline.