A share capital buys in the north, what happened?Has the stock market rally begun?

Mondo Finance Updated on 2024-01-31

Todaya**fieldThe strong performance was mainly due to the large inflow of northbound funds. Foreign capital, in particular, flowed into more than 11.3 billion yuan in just two hours of the morning market today, a new high in recent times. So why is foreign capital coming in in a big way?a**fieldWhat about it?

1. The valuation of A-shares has reached a historical low.

Currently,a**fieldValuations have fallen to historically low levels for the CSI 300 IndexPrice-to-book ratioIt's already close to its lows. In addition,SSE 50Indices have also experienced a period of **, and many of the weighted** valuations are relatively low. For foreign investors, this means medium and long-term layout opportunities. Therefore, northbound funds began to be optimistica**fieldand in the form ofValue investingAs the main strategy, actively sweep the goods.

2. The U.S. dollar index**, the expectation of RMB appreciation has increased.

Recently,U.S. dollar indexThere has been an accelerating** trend, and the market is more optimistic about the Fed's interest rate cut next year. InRMBIn the context of expected appreciation, it will attract more foreign capital inflowsa**field。At the same time,U.S. stockscontinues to hit new highs in Europe and other regionsAlso continued**, which makesa**fieldIt is relatively cheap in terms of valuation. Therefore, many foreign-funded institutions have deployed through ETFs and other meansa**fieldand continue to be optimistic about A-sharesInvestmentsOpportunity.

3. A-shares have bottomed out**.

fromTechnicalCome and see,a**fieldFrom last year to the beginning of this year, a triple bottom structure was formed, and the first at the technical level has been initially established. In addition,FundamentalsThe positive response to the cap policy has injected a shot in the arm for market confidence. With the gradual digestion of the negative news in the periphery,a**fieldIt also takes some time to repair itself. Boosted by foreign capital, market sentiment has gradually boosted, andCSI **It is expected to be further ** to the whole number.

The present, so to speaka**fieldThe conditions for further ** have been met,The ** has already begun to emerge. Not only is foreign capital in a big way, but the trading volume of the two cities is also expanding, and the return of domestic capital is also acceleratingIt is worth noting that the market is optimistic about the 2900 point position, and the disk protection funds are also acquiring ETFs and other varieties in the market, pushing up the trend of the index. Therefore, it can be considered that 2900 points has become the bottom of this round. fromTechnicalCome and see,a**fieldThere have been signs of a round of ***. At the same time,FundamentalsThe positive factors are also providing support for the market.

To sum up, the move of foreign capital, plus the marketFundamentalswithTechnicalfactors that make itThe momentum is gradually becoming clearer. Presenta**fieldIt has the best conditions, and the large-scale capital of the north has further strengthened the power of the market. Therefore, you can be happy to wait for the performance of the market outlook. However,InvestmentsCaution is still needed and market volatility remainsInvestmentsYou need to keep a cool head and balance the relationship between risk and return. At the same time, the selection of ** also needs to be analyzed and studied in many aspects to increaseInvestmentsSuccess rate and yield.

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