Source: Economic Information Daily
Recently, northbound funds have accelerated into the A-share market. As of June 8, northbound funds have made net purchases for 8 consecutive trading days, setting a new record for consecutive net purchases this year. The total net purchases of northbound funds since June totaled 26.059 billion yuan, more than the whole month of May. After short-term fluctuations, the rhythm of foreign capital investment in the A-share market is gradually returning to stability. Institutions generally believe that in the medium and long term, the allocation of foreign capital to RMB assets will continue to grow.
Northbound funds net purchases for 8 consecutive days
On June 8, the three major indexes fluctuated and closed up. Northbound funds continued to maintain net purchases, with a total net purchase of 5.767 billion yuan on that day, of which the net purchase of Shanghai Stock Connect was 6.317 billion yuan, and the net sales of Shenzhen Stock Connect was 550 million yuan. . As of that day, northbound funds had been net purchases for 8 consecutive trading days, setting a new record for consecutive net purchases this year.
Since late May, as the market has recovered, northbound funds have also accelerated. Wind data shows that on May 20 and May 31 this year, northbound funds bought a substantial net amount of 14.236 billion yuan and 13.865 billion yuan respectively, the two largest single-day net purchases this year.
In terms of investment, Northbound Capital has continued to increase its positions in power equipment, electronics, chemical and other industries since May. Wind data shows that since the beginning of May, the five industries with the largest changes in the stock market value of northbound funds are power equipment, electronics, chemicals, machinery equipment, and automobiles. The biggest change, with a total increase of more than 68 billion yuan, and power equipment is also the industry with the highest stock market value currently held by northbound funds.
From the perspective of the whole year, although the northbound funds fluctuated greatly, the overall situation still showed a net buying trend. According to statistics, in the first six months of this year, except for April, the northbound funds were all net purchases in a single month. Among them, the monthly net purchases in April, May and June showed an upward trend, reaching 6.3 billion yuan respectively. , 16.867 billion yuan, 26.059 billion yuan. It is worth noting that although June has just passed 5 trading days, the monthly net buying amount of northbound funds has exceeded that of the whole month of May.
Goldman Sachs Chief China Equity Strategist Liu Jinjin and his strategy team predict that the earnings of listed companies will stabilize and rebound in the second half of the year. Among them, the third quarter earnings per share are expected to achieve a year-on-year growth of about 4%. Nomura Securities also recently published a research opinion saying that A-shares already have valuation support, and economic growth and corporate profits are expected to recover in the second half of the year.
Actively managed ETFs under U.S. asset management giant Capital Group have recently increased their positions in several Chinese stocks. Previously, the largest overseas Chinese stock fund, Allianz Shenzhou A-share fund, increased its positions in CATL and LonGi Green Energy by 6.02% and 27.02% respectively in April. Another Chinese stock fund under Allianz Investments, Allianz Allianz China Stock Fund, significantly increased its holdings of Chinese Internet companies including Tencent Holdings, Alibaba, JD.com and other stocks in April. In addition, the fund also increased its holdings significantly The Ningde era.
Overseas asset management giants accelerate their layout in China
From the inclusion of ETFs in interconnection to the support of overseas institutions to set up fund management companies, a series of policies to promote high-level two-way opening of the capital market have been introduced in recent times.
On May 27, the China Securities Regulatory Commission and the Hong Kong Securities Regulatory Commission jointly issued an announcement. In order to further deepen the interconnection mechanism of stock market transactions in the mainland and Hong Kong and promote the common development of the capital markets of the two places, it is agreed in principle that the two exchanges will include eligible ETFs in the interconnection. Intercommunication.
With the continuous improvement of the opening level of China's capital market, overseas asset management giants have also accelerated their deployment in the Chinese market.
Recently, another foreign giant completed the private placement filing. According to the website of the Asset Management Association of China, AXA Private Fund Management (Shanghai) Co., Ltd., a wholly foreign-owned enterprise, recently completed the registration of private fund managers. The company's shareholder is AXA, one of the world's largest financial and insurance groups. Since the first foreign-funded private placement was registered in January 2017, more than 30 wholly foreign-owned private securities investment fund managers have completed the filing and registration. According to the reporter's incomplete statistics, the assets under management of foreign private equity funds have reached 58.5 billion yuan, a record high.
The agency said that in the context of the continuous advancement of institutional reforms, medium and long-term foreign capital will continue to flow into A shares. The Haitong Securities strategy team believes that the current proportion of A-shares in the global investment portfolio is still very low. In 2021, China's GDP will account for 18% of the world's GDP. In 2020, the market value of A-share listed companies in the global capital market has reached 13%, while the weight of A shares in the MSCI ACWI global market index is only about 0.4%, and there is a lot of room for improvement in the future. Judging from the holdings of large global investment institutions, the proportion of Chinese listed companies in their stock portfolios also has room for improvement. It is expected that in the future, with the rapid increase in the importance of my country's economy in the world, foreign capital will continue to flow into A shares from a medium and long-term perspective.
