Northbound capital
During the year, the overall net purchase exceeded 40 billion yuan.
Judging from the recent situation, despite some fluctuations in the A-share market, northbound funds still maintained the overall net buying trend during the year. Wind data shows that as of June 65438+1October 65438+July, the cumulative net purchase of funds from the north during the year was 415.36 million yuan; In the past six months, the net purchase amount of northbound funds was 6565438+23 million yuan. From the industry point of view, food and beverage, medicine and biology, power equipment, household appliances and electronics are the key positions of northbound funds.
At the same time, the enthusiasm of foreign-funded institutions to investigate A shares has obviously warmed up recently. Wind data shows that as of press time, 794 foreign-funded institutions have participated in the research of A-share listed companies since the second half of the year, and a total of 4,050 companies have been investigated. Compared with 634 in the same period last year, the number of foreign-funded institutions participating in the survey this year increased by more than 25% year-on-year. From the perspective of industries, new economic industries such as new energy, new materials and biomedicine have become the focus of foreign-funded institutions, which also reflects the deep recognition of China's economic transformation and upgrading by foreign-funded institutions.
A number of foreign-funded institutions said that corporate profits will improve in the fourth quarter. In the medium and long term, China's stocks and bonds still have great potential. Fidelity International said that in the fourth quarter, the support of fiscal and monetary policies is expected to help improve China's economic prospects. Benefiting from factors such as falling commodity prices, it is expected that corporate profits in China will also improve. After the fourth quarter, market sentiment may also improve further.
Du, head of macroeconomic research at Swiss Patek Wealth Management Company, also said that with the nominal GDP growth and capital inflow, China stocks and bonds have great potential in the long run. With the high global inflation, China's assets are playing an increasingly important role in diversifying global portfolio risks. Morgan Stanley Huaxin Fund believes that the current valuation of A-share industries is close to historical lows, and the valuation of high-quality companies is attractive, benefiting from policy support and high-end manufacturing and technology sectors such as new energy, military industry and communications. It has the value of medium-term strategic allocation.
Foreign-funded institutions accelerate the layout of China market.
In recent years, with the continuous promotion of two-way opening of China's capital market, foreign capital has become one of the important participating forces in China's capital market. According to the data recently released by the central bank, by the end of June 2022, the scale of domestic stocks held by overseas institutions and individuals had reached 3.57 trillion yuan, and the scale of domestic bonds held reached 3.65 trillion yuan. According to Wind's statistics, up to now, since 20 14 years ago, foreign investors have accumulated a net purchase of A shares 1.68 trillion yuan through Land Stock Connect.
It is worth noting that with the acceleration of the two-way opening of China's capital market and the continuous improvement of the basic system, foreign giants have accelerated the layout of China's capital market. In addition to increasing investment in China's capital market, foreign giants also actively participate in the China market by setting up private equity funds and public offering funds in China.
Recently, Wellington Investment Management Company, with a global management scale of over one trillion US dollars, submitted an application for Qualified Foreign Investor (QFII) to China Securities Regulatory Commission. At present, the approval status is notification of acceptance. Since the implementation of the new regulations of Qualified Foreign Institutional Investors (QFII) and RMB Qualified Foreign Institutional Investors (RQFII) in 2020, the entry threshold for foreign investment has been lowered and the scope of investment has been further expanded, which greatly facilitates foreign investment in the China stock and bond market. Foreign-funded institutions are also interested in investing in A shares and intensively applying for QFII qualifications. Wind data shows that up to now, the total number of QFII has reached 720, nearly three times higher than that of 10 years ago.
According to the information of China Asset Management Association, overseas asset management giants such as Fidelity, Qiaoshui, Schroeder, Lubomai and UBS have set up foreign private placements in China, and more than 30 foreign private equity investment fund managers have completed registration. At the same time, BlackRock, Lubomai and Fidelity Fund obtained domestic public offering licenses. Schroeder, Vanda, Lianbo, etc. An application document for establishing a fund management company was also submitted to the China Securities Regulatory Commission.
Tang Xiaodong, head of BlackRock China, said that the particularity of China market lies in the quality of developed markets and the growth potential of emerging markets, which are irreplaceable by other markets in the world, making China unique in the overall asset allocation of global investors.
In the process of serving overseas customers, we feel that the China market is a market that cannot be ignored by global investors, with great development potential. Sun, general manager of Nomura Oriental International Securities, also believes that the next stage of the company's business will still focus on developing the secondary market business and realizing the two-wheel drive of wealth management business and asset management business. At present, the company is applying for public issuance of fund sales and margin trading licenses.