In recent times, the Hong Kong stock market has generally begun a wave of rebound, getting rid of the haze of the previous long period. As of press release, the Hang Seng Index has been rising for five consecutive trading days, stabilizing at the 10,000 mark; the Hang Seng Index has also had strong counteroffensive momentum, rising more than 11% this week.
During this period, south-bound capital from the mainland further intensified efforts to “sweep” Hong Kong stocks. At present, the cumulative net purchase of Hong Kong stocks by Southbound Capital has exceeded HK$3 trillion. Among them, Beishui has sold more than HK$200 billion since this year, which has become one of the active driving forces of the recent Hong Kong stock market, and the increase in positions is still increasing.
Industry insiders generally believe that the restoration of Hong Kong stocks, which have been undervalued for many years, has only just begun. Furthermore, after UBS and Goldman Sachs either raised their stock ratings or overallocated A shares, the recent return of foreign capital to Hong Kong stocks is also quite obvious.
According to the latest report released by the International Finance Association (IIF), in March of this year, the Chinese stock market and bond market saw net capital inflows simultaneously for the first time. The Chinese stock market and bond market absorbed 1.7 billion US dollars and 2.1 billion US dollars respectively.
Beishui bought more than HK$200 billion in Hong Kong stocks during the year! Tencent increased its holdings by nearly 15 billion dollars in the past two months
So far this year, with the exception of 11 trading days, mainland investors have increased their Hong Kong stock holdings on all trading days, with a cumulative net purchase amount of approximately HK$206.3 billion during the year.
As of Thursday, mainland investors had increased their holdings of Hong Kong stocks for 19 consecutive trading days, the longest continuous increase in history; the net inflow of capital to the south for 11 consecutive weeks since the Spring Festival. Among them, the south-bound capital flow industry ranked high in finance, utilities, etc., and the banking, software and energy industries ranked high in terms of market value.
According to Huaxia Fund, due to the continuous decline in the past, Nanxia Capital's allocation of Hong Kong stocks was mainly focused on high-dividend stocks. In the first quarter of this year, A-shares also increased positions in high-dividend sectors of Hong Kong stocks with high AH premiums, such as banking, energy, utilities, etc. Recently, however, we have seen welcome changes in capital margins increasing highly relevant economic assets, such as the Hong Kong stock Internet industry; and the innovative pharmaceutical industry, which is nearing an inflection point, benefiting from interest rate cuts.
Futu News has counted the top ten stocks that Beishui has increased its holdings since March. The data shows that in addition to the Chinese word and high dividend concept, Technology Network stocks have gradually regained financial popularity. Among them, Hong Kong stock technology leaders$TENCENT (00700.HK)$Over the past two months, it has received a cumulative increase of nearly HK$15 billion, which strongly supports the stock trend. The stock price increased by more than 22% during the same period.
The stock price of Science Network stocks showed excellent performance$XIAOMI-W (01810.HK)$,$KUAISHOU-W (01024.HK)$It has also become a south-bound capital darling in the past two months. In the past two months, it received net purchases of 4.765 billion and HK$1,313 billion respectively, with increases of more than 25% and 18% respectively over the same period.
Other than that,$BANK OF CHINA (03988.HK)$,$CHINA MOBILE (00941.HK)$,$CNOOC (00883.HK)$,$PETROCHINA (00857.HK)$,$CHINA TELECOM (00728.HK)$Meanwhile, speciality stocks are still popular, and Beishui's buying trend is unabated.
The policy side resonates with the financial side! Foreign investment may be “switching high and low”
The International Finance Association (IIF) recently disclosed the March capital investment report, showing that the global investment market is shifting high and low, from US stocks to emerging markets. Foreign investors added about US$32.7 billion to their emerging market portfolios in March, and emerging markets received net inflows for the fifth month in a row.
There has also been a good improvement in China's net capital inflow. In March of this year, the Chinese stock market and bond market saw net capital inflows simultaneously for the first time. The Chinese stock market and bond market absorbed 1.7 billion US dollars and 2.1 billion US dollars respectively. The last simultaneous net inflow of foreign capital into Chinese equity bonds dates back nine months.
Furthermore, the latest quarterly report shows that Hong Kong stocks have become the main target for mainland fund managers to increase their positions. Among them, up to half of the “A-share fund” managed by star fund manager Zhang Kun is the market value of Hong Kong stocks, while the “Shanghai-Hong Kong-Shenzhen Fund” managed by many star fund managers “contains more than 50% or even 60% of Hong Kong.”
At the same time, the mainland's support for Hong Kong stocks from policy to capital resonated with foreign investment. On Friday, the Securities Regulatory Commission announced five cooperation measures with Hong Kong, including easing the scope of ETF products, incorporating REITs, optimizing mutual recognition of funds, and unblocking listed financing channels. The significance of policy-friendly information is clear, helps to unblock connectivity mechanisms, introduce capital activity into the Hong Kong capital market, and enhance liquidity.
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