Southbound capital and northbound capital refer to the capital flow in stock market transactions. Among them, southbound funds, also known as southbound funds, refer to the funds that content investors buy shares of the Hong Kong Stock Exchange through Shanghai and Shenzhen-Hong Kong Stock Connect; Northbound capital, also known as northbound capital, refers to the capital from Hong Kong to Shenzhen and Shanghai stock markets.

the difference between southbound funds and northbound funds is mainly concentrated in three aspects. These three aspects are: different investors, different capital flows and different daily quotas. The details are as follows:

1. Different investors

The investors of southbound funds are mainly domestic individual investors and institutional investors, while the investors of northbound funds are mainly from Hong Kong or internationally.

2. Different capital flows

Southbound capital refers to the capital that mainland investors buy shares of the Hong Kong Stock Exchange through Shanghai and Shenzhen-Hong Kong Stock Connect, that is, the capital enters the Hong Kong stock market from north to south. Northbound capital usually refers to the capital flowing into the A-share market from Hong Kong through Shanghai and Shenzhen-Hong Kong Stock Connect, that is, the capital enters the A-share market from south to north.

3. Different daily quotas

Southbound funds include funds going to Hong Kong through Shanghai Stock Exchange and Shenzhen Stock Exchange. At present, the daily quota is 42 billion yuan each for Shanghai-Hong Kong Stock Connect and Shenzhen-Hong Kong Stock Connect. Northbound funds include funds coming to A shares through the Hong Kong Stock Exchange. The daily quota of Shanghai Stock Connect and Shenzhen Stock Connect is 52 billion yuan each.

Meaning of southbound capital and northbound capital:

Southbound capital refers to the flow of capital in the stock market. Among them, Hong Kong Stock Connect refers to the funds that mainland stock investors purchase Hong Kong Stock Connect shares through Shanghai-Shenzhen-Hong Kong Stock Connect; Northbound fund refers to a fund in which Hong Kong investors purchase A shares through Shanghai-Shenzhen-Hong Kong Stock Connect. When domestic investors invest in stocks, they will pay attention to the trend of these two funds, which can be seen in the stock trading software. Daily users should have relevant knowledge when investing in stocks. When investing in a stock, they need to judge the future trend of the stock price in many ways, and then decide whether to buy it. After buying, you should pay attention to the changes in the stock price. It is best to set the take-profit price and stop-loss price, so that the stock can be sold in time to make a profit after it rises. The stop-loss price should also be sold after the stock price falls to avoid further losses.