Northbound capital, also known as northbound capital, is the capital flowing into A shares through the Shanghai and Shenzhen stock markets.
What is the difference between southbound capital and northbound capital? This is mainly concentrated in three aspects: different capital flows, different investors and different daily quotas.
1) Different capital flows: Southbound capital refers to the capital that mainland investors buy Hong Kong stocks through Shanghai-Hong Kong Stock Connect and Shenzhen-Hong Kong Stock Connect, and the capital flows into the Hong Kong stock market from north to south. Northbound funds are funds flowing into the A-share market from the Hong Kong market through Shanghai, Hong Kong and Shenzhen, and funds enter the A-share market from south to north.
2) Different investors: the investors of the northbound fund are from Hongkong or overseas, while the investors of the southbound fund are individuals and institutions in Chinese mainland.
3) Different daily limit: Southbound funds include funds flowing into Hong Kong through the Shanghai and Shenzhen Stock Exchanges. The daily limit of Shanghai-Hong Kong Stock Connect is 42 billion yuan, and that of Shenzhen-Hong Kong Stock Connect is 42 billion yuan. Northbound funds include funds flowing into A shares through the Hong Kong Stock Exchange. The daily limit of Shanghai-Hong Kong Stock Connect is 52 billion yuan, and that of Shenzhen Stock Connect is 52 billion yuan.
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