The market has seen a rapid recovery today, which is also in line with the author's expectations. The Shanghai and Shenzhen stock markets appearedVolume**and what is particularly striking is that the northbound capital has once again entered the stage of buying frenzy. Foreign capital has shown a continuous inflow of funds, and in just two hours in the morning, more than 11.3 billion yuan has flowed into northbound funds. If they don't opt for intraday outflows, it is clear that today's foreign capital inflows will hit new recent highs again. So why is the northbound capital crazy?There are three important reasons for this.
First of all, the current A-share is already in the low valuation range, the CSI 300 indexPrice-to-book ratiohas fallen to near historically low levelsSSE 50The index has also gone through quite a long time**. This means that more weight** has been underestimated, which provides an opportunity for medium and long-term layout for foreign investors. Northbound funds are mainly focused on:Value investingObviously, they believe that more core assets have bottomed out, so they have launched a round of sweeping operations.
Secondly, the last two daysU.S. dollar indexFalling sharply, the market's expectations for the Fed to cut interest rates next year are already very high. InRMBis expected to appreciate in the backgroundU.S. dollar indexWith the continuous adjustment, A-shares are also more attractive, so the return of foreign capital has accelerated.
Third,U.S. stocksThe three major indices continue to hit new highs and have clearly entered a bull market. Europe and other regionsalso ushered in a round of **. At this time, A-shares are inValue depressionMany foreign-funded institutions have deployed A-shares through ETFs, and are optimistic about A-shares, so they will naturally use real moneyYes。Therefore, whether the ** behavior of foreign capital meansGet Started**?
Combined with my observations and observations, the currentFurther conditions have been met, i.e., the first has begun. The entry of northbound funds is not an isolated event, the trading volume of the two cities is also increasing, and domestic capital has also returned, which indicates that the market has a more optimistic expectation of the 2900 point position. It is worth noting that yesterday's market is also inseparable from the support of disk protection funds, and today the market continues, and some funds continue to enter the index to push up the index, which further establishes the 2900 point area as the bottom line of this round.
In addition, the market is currently enteringFundamentalsTechnicaland other aspects of the period of change, the first foreign capital is just the icing on the cake. Technical** has experienced a triple bottom pattern from last year to this yearTechnical** has been preliminarily formed. fromFundamentalslook, the market is rightRestricted SharesThe positive response to the inability to lend securities has effectively resolved the market's concerns about the hot discussion of the news and boosted market confidence. At the same time, with the successive release of external bearishness, A-shares themselves also need to be repaired, and the addition of foreign capital has further boosted market sentiment. Hence, **andGEMIt is expected to rise further back to the upper round number.
In short, foreign capital can be carried out in the current positionInvestments, apparently they are optimistic about the market outlook. And today's ** force is also the performance of the market after the overfall. In any case, we should maintain an optimistic attitude towards the market outlook, as foreign investment has injected new impetus into the market. Please actively like, comment, and follow, this analysis is for reference only.
The volatility of the market has always beenInvestmentsThe focus of attention. And now,a**fieldThere has been a phenomenon of crazy buying of funds in the north, which has aroused the attention of many people. This article will delve into the reasons for this phenomenon from different angles and make a look at the future market trends. Through the analysis of market movementsTechnicaland combined with personal experiences and opinions, this article aims to:Investmentsand help you better grasp market opportunities.
Northbound capital refers to the inflow of foreign capital from Hong Kong or other countries and regions into Chinaa**field。Recently, there has been a big return to the northbound capitala**field, triggeredInvestmentsof the widespread concern. Prior to that,a**fieldIt has been facing the problem of capital outflow, and the large-scale inflow of northbound funds means that the market may usher in a wave of ***
Expanding: Judging from the data, northbound funds have been in China for many days in a rowa**fieldCrazy**,LiquidityEnter the market, forInjected with new energy. This shows that foreign capital is rightChina**There is a strong confidence in ChinaEconomydevelopment prospects. The inflow of northbound funds has not only boosted market confidence, but also fora**fieldBroughtLiquidity, which is expected to promoteThere was a wave of ***
Why would northbound funds buy A-shares at this time?From a market perspective, there are three important reasons.
First of all, the current onea**fieldValuations are already relatively low, especially for the CSI 300 IndexPrice-to-book ratiohas fallen to historically low levelsSSE 50The index has also gone through a period of **. For foreign capital, this means that the current core assets have entered a low level, and there is a large oneInvestmentsValue. Therefore, they choose to put their money ina**field, looking for medium and long-termInvestmentsOpportunity.
Secondly, in the near futureU.S. dollar index**, market expectations for the Fed to cut interest rates next year are higher. InRMBIn the context of expected appreciation, foreign capital is more inclined to flow into the Chinese market. Whilea**fieldAs the second largest in the worldThe market has attracted a large inflow of foreign capital. As a result, there has been a massive inflow of capital from the northa**fieldphenomenon appeared.
Third,Worldwide**Overall**, especiallyU.S. stocksThe three major indices hit record highs. This optimistic atmosphere has affected global capital markets, including others, such as EuropeThere is also a trend of **. In this context, the northbound capital has set its sights ona**field, thinksa**fieldInValue depression, there are largerInvestmentsOpportunity. So, they went ina**fieldYesTarget**.
Expanding: The behavior of foreign investors shows that they are against ChinaEconomyThe development is full of confidence and optimisticChina**long-term development prospects. Currenta**fieldThe valuation is low, and it has a large oneInvestmentsvalue, attracting a large inflow of foreign capital. At the same time,Worldwide**Overall**,U.S. stocksIt has hit a new high, which also provides a favorable external environment for northbound capital to flow into the Chinese market. It can be said that the ** behavior of the northbound capital isa**fieldOne of the important factors of the recovery.
Through the observation and analysis of the market, it can be concluded that the current market has the conditions for further development.
First of all, fromTechnicalCome and see,a**fieldA triple bottom pattern has been formed, and the technical line has begun to show signs of **. This lays the foundation for further development of the market.
Secondly, fromFundamentalslook, the market is rightRestricted SharesThe issue of not being able to borrow and lend securities has responded positively, which has resolved the market's concerns and boosted itInvestmentsConfidence of the people. With the gradual release of the peripheral bearishness,a**fieldIt will be gradually repaired, and the market's ** will be boosted by foreign capital, and sentiment will be further boosted. Hence the current ** andGEMIt is expected to rise further back to the upper round number.
To sum up, I thinkInvestmentsshould be happy to wait for the market. Foreign-ownedInvestmentsThe behavior shows that they are bullish on the market and they are able to choose in the current positionInvestments, indicating that they are optimistic about the market outlook. Moreover, the performance of today's market is also the best performance after the overfall, indicating that the market has the conditions for further growth. Therefore, I advise everyone to actively participate in the market, stay optimistic and seizeInvestmentsOpportunity.