The truth of foreign investors buying A shares: 200 billion yuan in goods swept in the year, Shenzhen City becomes the focus of hunting
The truth about foreign investors buying A shares!
The stock market is down, why does Northbound Capital insist on buying and buying?
During the year, 200 billion yuan of goods were scanned, and Shenzhen and foreign investors were unable to understand the actions of Qianqian Securities when it was becoming the focus of fund hunting!
At the beginning of this year, many people felt that foreign countries could participate in the A-share market.
But when the market runs to September or October of this year, you will find that foreign countries are not so magical.
Judging from the performance of the market, it can be said that they cannot defeat industrial capital.
However, from the data point of view, foreign countries do not care what market participants think of their investment actions. They only have one strategy, which is “buy, buy and buy”!
WIND data show that on October 18th (Friday), the capital of Northbound decreased by 12%.
At $ 4.5 billion, net inflows were interrupted for six consecutive days.
At this point, the capital of the north has flowed into the net in 1992.
Since November 17, 2014, the Northbound Passage has been opened for nearly 5 years.
As of October 18, foreign countries have made net purchases for 5 consecutive years, with a total net purchase of more than 8,400 trillion.
Recently, Shenzhen’s stocks are obviously more optimistic about foreign stocks, and the net inflow of funds is stronger than that of the Shanghai stock market. During the A-share sell-off on the 18th, Shenzhen’s stock market is still 2.
Net inflow of 4.6 billion funds.
Unless the A-shares have risen too much, the strategy choice in most foreign countries is “buy”. What do they think?
Is A-share really safe now?
What stocks Kitakami Capital holds? First, let’s take a look at what Kitakami Capital bought.
Judging from the Shanghai stock market situation, as of October 17, the transaction data, Beijing Capital currently holds a total of 871 shares, the company with the highest proportion of outstanding shares is Shanghai Airport, followed by Founder Securities (rights), Angel Yeast,Hongfa shares, etc.
There are 13 companies holding over 10% of the outstanding shares.
Let’s take a look at the market performance of these stocks this year. The overall performance of companies with a high proportion of outstanding shares is indeed quite good. Weir shares rose 232 during the year.
At 7%, Baiyun Airport surged 120.
Only 44% of Fuyao Glass saw a slight decline.
However, on the whole, 28 of the 871 stocks doubled during the year, and 555 stocks rose less than 20%, and there were a lot of lightning strikes, so the rich winning percentage was discounted.
Looking at the situation in Shenzhen, as of the 17th, foreign holdings of Shenzhen’s 1136 stocks accounted for the highest proportion of the market capitalization of China Test, with a share of nearly 22.
99%, Yixintang, Tiger Pharmaceuticals, Midea Group and other shares hold the top shareholdings.
A total of 16 stocks accounted for more than 10% of the circulating market capitalization.
Similarly, companies with a higher proportion of Beihang Capital’s shares in tradable shares performed quite well during the year.
Among the top 25 stocks in terms of shareholdings in circulation, none of them fell during the year, and four stocks doubled during the year, namely Wuliangye, Tiger Pharmaceuticals, Huatest and Jereh.
Among these 1136 stocks, a total of 49 stocks have doubled, and the stock with the largest increase is Leading Intelligence, which increased by 278 during the year.
4%, Hudian shares, Wuhan Fangu (rights), Shengbang shares, Shuangta Food and Yisheng shares all increased more than twice.
There are also 655 stocks that have risen below 20%, a slightly smaller proportion than the Shanghai stock market, but there are also a large number of stocks that burst.
How much potential does the foreign country have? So, does the foreign country still have the potential to buy in the near future?
According to estimates by Guosheng Securities, considering that the size of global index-type tracking funds has remained basically stable, the distribution of mid-cap stocks has a certain diversion effect relative to large-cap stocks. It is assumed that the incremental funds are allocated to large-cap stocks.It is expected that the incremental funds obtained by large-cap stocks and mid-cap stocks will be approximately US $ 18.9 billion and US $ 12.6 billion, respectively, approximately 132 billion yuan and 88 billion yuan, totaling approximately 220 billion yuan.
According to the statistics of the MSCI’s current disclosure of A-share mid-cap and large-cap stocks, there is a significant difference in the proportion of large-cap stocks and mid-cap stocks. The large-cap stocks are mainly driven by non-bank, food and beverage, pharmaceutical, real estate andHome appliances; and the funds driven by mid-cap stocks are mainly distributed in medicine, computers, electronics, chemicals and 杭州品茶夜网 food and beverages.
Judging from the distribution of market capitalization of some listed industries, large-cap stocks prefer financial real estate and large consumer industries, while mid-cap stocks give more focus to growth industries such as computers and electronics.
Although mid-cap stocks receive less capital than large-cap stocks, the current market value of mid-cap stocks is also much smaller than large-cap stocks, and 88 billion buying orders can still stir up a lot of spray.
From the overall situation, although the market is sluggish and some stocks have been estimated to be relatively high, the pace of redundant and continuous scanning of goods has been stopped, especially in the recent Shenzhen market, which has been frequently scanned for goods.Since October, the Shenzhen Stock Connect has bought 91 net.
0.5 billion shares.
Let’s take a look at the Shanghai market. October’s performance was significantly weaker than Shenzhen’s, and the oxides in July and August were also much weaker than Shenzhen’s.
Let’s take another look at the truth of foreign A-share purchases. According to rough statistics, from November 17, 2014 to the present, important shareholders of listed companies have reduced their holdings by approximately USD 652.1 billion.
From the perspective of the market’s buying and selling power, the purchasing power of Kitakami Capital is slightly higher than the pressure to reduce holdings.
So, under this background of non-crazy cash flow, what causes foreign capital to continue to enter the market?
Brokerage China reporters interviewed several foreign investment managers based in Hong Kong.
Brokerage China Reporter: What is your basis for continuing to buy A shares, and why is it so different from domestic investment?
Investment manager: The operation of large funds is more about macro factors. Relatively speaking, China’s fundamentals are better than that of most economies. This is the most important reason for foreign investors to buy A shares.
In addition, domestic-funded institutions have some annual assessment tasks, but foreign assessment mechanisms are not the same as those in the Mainland.
We also have our own set of evaluation methods and value recognition.
Broker China Reporter: If the fundamentals are good, why are there so many industrial capitals to be reduced?
Investment manager: Among A-share listed companies, there are indeed some problems in the manufacturing industry, so foreign capital allocation is relatively small.
Our focus is on consumer, financial and other defensive industries.
Broker China reporter: It is estimated that these stocks allocated by foreign countries have always been very high. Why are they still buying?
Investment manager: In the past, A-share consumer stocks were traded at a discount, much lower than foreign consumer stocks’ valuations. Now it is foreign countries who buy them into international estimates.
At present, the consumption of A shares will not be obviously bubble, and one point is basically regarded as a premium for growth.
By the end of last week, Anta is estimated to be the same as Nike, Moutai is similar to Diageo, and Polaia is similar to Shiseido and fancl, so it may be basically in place.
Therefore, from the perspective of capital allocation, consumption may also face structural adjustment.
Reporter of Brokerage China: The Ministry of Finance is working with relevant departments to study and draft the consumption tax law. What do you think?
Will it affect your configuration?
Investment manager: On the whole, the central government has made it clear that the overall tax burden must be kept basically stable.
It can be understood that, in the form of consumption tax, some of them are initially transferred to the locality.
Local governments will use the benefits in a targeted manner and have the incentive to stimulate consumption.
At present, the external environment is unstable and the interior cannot be driven by real estate. Consumption is the only item of GDP that can be relied on.
Because foreign countries see this clearly, they are directly consuming.
From this point of view, I even think this (consumption tax law) is a positive.
Brokerage China reporter: Recently, China’s housing stocks have been very strong, which has even driven real estate stocks in A shares, and foreign exchange is alloting real estate in A shares, but at the same time, the government has clearly not taken real estate as a short-term economic stimulus.
What kind of logic is this?
Investment manager: First of all, make sure that not all real estate companies will be okay, but this time is the easiest time for leading companies.
First, the loan interest rate is cheap, and second, the land acquisition cost is low.
House prices have not decreased much.
Many A-share fund managers still treat all real estate stocks as cyclical stocks.
Even if the current stock market is not growing, the integration bonus is enough for many leaders to eat.
Brokerage China Reporter: Since many manufacturing industries are in difficult times, why have so many foreign investors bought Shenzhen stocks recently?
Investment manager: This should be an arbitrage behavior.
You can see that the situation was similar in July and August. At that time, MSCI had to expand its capacity, so there was a lot of money to go to Shenzhen to play games. Because Shenzhen’s stocks are generally small, incremental funds have a larger marginal impact on market value.
This time is also similar. In November, the percentage of MSCI entering the mid-cap stocks increased to 20% at one time, and some foreign capitals will deploy these stocks in advance.
However, please note that most of the mid-cap stocks mentioned here are concentrated in the Shenzhen Stock Exchange. In addition, the size of the funds in the mid-cap stocks this time will have a greater impact on the market value of the relevant stocks than the large-cap stocks.Judging from the distribution of mid-cap stocks, most of them are in Shenzhen, so Shenzhen is more concerned about capital.