According to wind data, 941 stocks were increased by northbound funds in the past 10 trading days, of which 116 stocks were increased by more than 10million shares.
In recent years, the allocation of RMB assets by overseas central banks and funds tracking international indexes has increased significantly.
According to the EPFR capital data tracked by CICC (as of June 8), foreign capital flowed into a shares again, mainly because passive capital outflow turned into inflow and active capital maintained inflow.
In addition, the package of measures has been implemented and effective one after another, and the most difficult period of short-term economic operation is passing.
Core assets such as Guizhou Moutai have been significantly increased by northbound capital.
topped the list, with 224million shares, 151million shares and 119million shares respectively.
At present, it is still in the early stage of repairing the main market through valuation.
The core assets led by Guizhou Moutai were significantly increased by northbound capital.
The capital area pole signal shows that a set of data shows that since this year, foreign capital has cast a “vote of confidence” in China, and the attractiveness of China’s assets has been continuously improving.
On the one hand, as the situation of epidemic prevention and control continues to improve, macro policy adjustment has been strengthened, and positive signals have emerged.
In terms of the amount of individual stock positions, wind data shows that in the past 10 trading days, the amount of increased holdings of Guizhou Moutai, China free, Yili shares, Wuliangye and China Merchants Bank by northbound capital ranks first, with positions increased by 7.988 billion yuan, 3.459 billion yuan, 3.178 billion yuan, 2.022 billion yuan and 1.801 billion yuan respectively.
According to the data of the people’s Bank of China, RMB loans increased by 1.89 trillion yuan in May, an increase of 392billion yuan year-on-year, while the new RMB loans in April were 645.4 billion yuan.
Despite some downward pressure, the conditions of production factors supporting China’s high-quality development have not changed, and a package of measures have been put into effect one after another.
From the perspective of the warehousing industry, in the past 10 trading days, the North focused on the warehousing of food and beverage, power equipment and other industries.
A package of measures has been put into effect one after another.
Since May 27, as of June 10, northbound capital has net purchased a shares for the 10th consecutive trading day, with a cumulative net purchase amount of 66.075 billion yuan.
Qinpeijing, chief strategist at CITIC Securities, said that the rapid recovery of the domestic economy and the significant easing of external pressure jointly promoted the recovery of investor confidence.
“The CSRC will study and launch a new round of independent opening-up and practical measures, steadily expand the scope of the Shanghai Shenzhen Hong Kong stock connect, promote the expansion and optimization of the Shanghai London Stock connect mechanism, steadily expand the two-way opening of commodity and financial futures markets, enrich the supply of international varieties, and comprehensively enhance the institutional competitiveness of the capital market.” Yi Huiman, chairman of the CSRC, said a few days ago..
Specifically, she analyzed that: first, the return on investment is stable, China’s economy is developing in a high quality, the balance of payments structure is relatively stable, and the value of the RMB is relatively stable; Second, RMB assets have a relatively independent market trend, which is a very good choice to diversify investment risks; Third, RMB assets can better meet the asset allocation needs of investors.
The A-share market has continued to rebound recently.
The intensive introduction of a series of policies to stabilize growth also promoted the significant recovery of new RMB loans in May.
These factors have increased the attractiveness of RMB assets.
Com data shows that investors invested nearly US $270Million in iShares Asustek MSCI China ETF (mchi.us) on June 8, a record high for the fund’s single day capital inflow.
More importantly, the impact of the epidemic has gradually weakened.
In addition, the net purchase of Chinese theme funds in a single day reached an all-time high.
The first consideration for international capital inflows is the return on assets.
On the other hand, from the approval in principle of ETF being included in the interconnection to the support for overseas institutions to set up fund management companies, a series of institutional environments promoting the construction of long-term funds that are “willing to come and stay” have been continuously improved, boosting market confidence, including that of overseas institutions.
As the “smart money” in the market, what signals have foreign investors released by continuously buying RMB assets? The institution believes that the valuation of RMB assets is cost-effective.
In May, the purchasing managers’ index (PMI) of China’s manufacturing industry has rebounded, and the effects of a number of policies to stabilize growth and protect people’s livelihood have begun to appear.
Active private placement and position increase, public fund position adjustment, and continuous inflow of foreign capital have brought about incremental capital relay.
Since May 27, as of June 10, northbound capital has net purchased a shares for the 10th consecutive trading day, with a cumulative net purchase amount of 66.075 billion yuan.
According to wind data, as of June 10, the total market value of a shares held by northbound funds reached 2.38 trillion yuan, with a floating profit of 152.185 billion yuan.
Core assets have been significantly increased.
Northbound funds that increased their positions in a shares for 10 consecutive trading days also benefited a lot.
Mchi is the largest Chinese stock ETF overseas, with an asset management scale of US $7.2 billion.
Among them, the single day net inflow on May 31, June 6 and June 10 exceeded RMB 11billion.
The number of additional shares held by CSCEC, Agricultural Bank of China and Zijin Mining Co., Ltd.
As of June 10, northbound capital had net purchased for 10 consecutive trading days, the longest record of continuous net purchase since this year, with a cumulative net purchase amount of 66.075 billion yuan.
As of June 10, the Shanghai Composite Index, Shenzhen Composite Index and gem index have risen by 3.09%, 4.40% and 6.29% respectively since June.
Behind the popularity of the Chinese market by foreign investors is the strong resilience, potential and staying power of the Chinese economy.
ETF.
“RMB assets are attractive in many ways.” Wangchunying, deputy director general and spokesman of the safe, said at the safe press conference a few days ago.