The net inflow of main capital refers to the total amount of main capital flowing into the market minus the total amount of main capital flowing out of the market in a period of time. The main funds usually refer to institutional investors, large funds, insurance companies and other investors with strong financial strength and strong operational ability. Their trading behavior can often reflect the overall mood and trend of the market.
Why does the stock price fall when a large amount of capital flows in?
Stock prices are affected by capital inflows and outflows. Generally speaking, the stock price will rise after the capital inflows. However, in the A-share market, the stock price will fall after a large amount of capital inflows.
1, big orders are not everything. When the stock price is in a downward channel, even with the main funds, the stock price can't be pulled up. Because the selling pressure is too large, large single funds enter the stock price and fall.
2. There may be conflicts between major funds. On the other hand, the main fund bought several large transactions through multiple accounts, but actually threw out small orders, which led to the stock price falling.
3. When the stock market is depressed, a large amount of capital inflow may mainly cause the illusion that the stock price has stopped falling and rebounded. In fact, their willingness to push up the stock price is not high, so the stock price does not rise.
4. For example, a large amount of funds were bought in early trading, but the stock price began to fall after soaring until the closing failed to push the stock price up again, but the trading system still showed a large amount of funds inflow, but the stock price fell.