CICC released a research report saying that southbound capital was absent during the second half of the Friday and 1st holiday, and the Hong Kong stock market continued to rise, indicating that this round of rebound in Hong Kong stocks was more supported by foreign investment. In terms of domestic capital, Hong Kong stocks have surged, and some foreign capital has already turned into inflows. Furthermore, by the end of March, active capital from various types of funds had rebounded to varying degrees compared to the benchmark of allocation to Chinese stocks at the end of December. However, the reallocation of long-term capital still requires fundamental improvements and coordination. In particular, fiscal policies are strengthened to deal with the current problems of declining inflation and credit contraction.

The main views of CICC are as follows:

Notable changes in global capital this week are: 1) The EPFR capital data being tracked shows that as of this Wednesday (May 1), overseas active capital still showed outflows from the A-share and Hong Kong stock markets, but the scale of outflows narrowed sharply compared to the previous week; 2) in terms of connectivity, capital flows to the north continued, and capital inflows to the south accelerated; 3) the global market, stock and bond markets maintained inflows, and the outflow from the money market continued to narrow; 4) US stocks and Japan switched to inflows, and developed European and emerging markets continued to flow out.

In terms of domestic capital, Hong Kong stocks have surged, and some foreign capital has already turned into inflows. The Hong Kong stock market experienced another strong rise this week. Hang Seng Technology and Hang Seng Index rose 6.8% and 4.7% respectively. Southbound capital continued to flow during the two trading days of the opening of the interconnection market, with a total inflow of HK$6 billion. It is worth noting that southbound capital was absent during the second half of the Friday and 1st holiday, and the Hong Kong stock market continued to rise, indicating that this round of rebound in Hong Kong stocks was more supported by foreign investment. As of this Wednesday (April 25 to May 1), EPFR's overseas active capital outflows of US$190 million from Hong Kong stocks continued to be narrower than last week's US$310 million. Looking at the breakdown, active global funds switched to inflows of US$27 million into Chinese stocks this week, while passive global funds and global emerging market funds switched inflows of US$41 million and US$40 million respectively, which may indicate that some value capital has already returned. Furthermore, by the end of March, active capital from various types of funds had rebounded to varying degrees compared to the benchmark of allocation ratios to Chinese stocks at the end of December. However, the reallocation of long-term capital still requires fundamental improvements and coordination. In particular, fiscal policies are strengthened to deal with the current problems of declining inflation and credit contraction.

In terms of global capital, foreign capital is actively flowing into the Indian and Japanese markets. As of this Wednesday (April 25 to May 1), active foreign capital inflows continued to flow into the Indian market this week, and the scale increased (US$110 million vs. (The previous week's inflow of US$40 million); in terms of Japanese stocks, active foreign capital turned to inflows of 140 million US dollars this week, while passive foreign capital continued to flow in at least 330 million US dollars. Furthermore, after three consecutive weeks of outflow from the US stock market, active foreign capital turned into an inflow of 1.12 billion US dollars this week, while passive foreign capital also accelerated its inflow of 2.14 billion US dollars.

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