Since the launch of Stock Connect, northbound capital flows have been the subject of long-term market attention. There is a view that northbound funds are "smart money", and their inflows and outflows are regarded as a "weather vane" for foreign investors to be bullish and short on A-shares, and make investment decisions accordingly. There are also views that the current frequency and content of the disclosure of northbound trading information exceed the practice of disclosure of A-share transaction information, and are also different from the general practice in the international market, and it is necessary to appropriately optimize the information disclosure mechanism of northbound capital transactions from the perspective of protecting the legitimate rights and interests of small and medium-sized investors and maintaining the consistency and fairness of transaction information disclosure to reduce its market impact.
It is reported that the current northbound fund transaction information disclosure involves intraday real-time trading information, quota information and after-hours information, and after-hours information also includes information such as buying and selling, trading in the top **, etc., which is the transaction information with the highest frequency of disclosure and the most disclosed content. In particular, the real-time ** and selling amount of northbound funds will be further displayed in a centralized manner after the integration of some ** merchants and intermediaries, so that A-share investors can obtain northbound capital flow information during intraday trading. Therefore, the northbound capital flow situation has aroused long-term concern in the market.
Market participants said that in fact, northbound trading is only one of the channels for foreign investment in A-shares, can not fully show the full picture of foreign transactions, as far as northbound funds are concerned, the internal composition is also more complex, both long-term allocation funds, short-term trading funds, both actively managed funds, and passive tracking funds, can not fully and accurately reflect the long-short sentiment of foreign capital, the inflow and outflow of northbound funds as a "weather vane" for foreign investors to be bullish and short on A-shares, there may be one-sided northbound funds, Excessive or even wrong interpretation will affect investors' trading judgment and cause investment losses.
The reporter interviewed the staff of the business department of a brokerage firm on this issue, and the person said that the above situation occurs from time to time. For example, on September 4, the overall net of northbound funds was 6.9 billion yuan, and on September 5, the net sale was 4.6 billion yuan. A small and medium-sized investor in the business department followed the northbound investor **11860,000 shares, **799390,000 yuan, the average price is 67$40 shares. The next day, he followed the sale of all the shares on September 4**, with a sale amount of 776480,000 yuan, the average price is 6547 yuan shares, trading loss 22910,000 yuan. A medium-sized investor followed **8** on September 4, totaling **34030,000 yuan, all sold on September 5;Among them, 6 ** lost money, 2 ** made a profit, with a total loss of 6320,000 yuan.
Against this backdrop, market participants are keen to optimise the information disclosure mechanism for Northbound transactions.
The original intention of disclosing Northbound trading information is to effectively reveal and remind the use of Northbound trading quota, but the current disclosure content of Northbound trading information has exceeded the quota information, and at the same time, it is different from the practice of A** market transaction information disclosure, and it is also different from the general practice in the international mainstream market.
Excessive disclosure of Northbound capital transaction information may excessively amplify the influence of Northbound funds. Some market participants said that in the face of an increasingly open market environment, investors should rationally look at external factors such as northbound capital flows, grasp the main line of development of the A** field based on the domestic cycle, and make rational decisions. Regulators should also consider adjusting the information disclosure mechanism for northbound transactions in a timely manner, such as optimizing the disclosure of real-time intraday trading information and adjusting the content or frequency of post-market disclosure, so as to ensure the consistency of information disclosure in the overall market and the fairness of investors' access to trading information. (Reporter Tian Peng).