Choice data shows that from January 2 to 5, 2024, southbound funds increased their positions in Hong Kong stocks for 4 consecutive trading days, with a total net of **144HK$2.7 billion. From the perspective of the extended period, from July to December 2023, southbound funds will be net for 6 consecutive months, with net ** HK $15.8 billion and 75.5 billion, respectivelyHK$300 million, HK$544HK$6.3 billion, HK$231HK$600 million, HK$184HK$4.9 billion and HK$7.8HK$9.3 billion.
Southbound funds with continuous net inflows "embraced" high-dividend assets and growth stocks. In addition, southbound funds have increased their positions in growth sectors such as pharmaceuticals and electronics in advance.
According to data from the Hong Kong clearing system, as of January 5, 2024, the top 10 southbound funds that have increased their holdings since July 2023 are CNOOC, Xiaomi Group-w, China Mobile, China Shenhua, Xpeng Motors-W, China Property Insurance, Innovent Biologics, CSPC Pharmaceutical Group, Akeso Biotech and Ping An of China, with a market value increase of 261HK$8.9 billion, HK$11.7HK$3.5 billion, HK$83.3HK$4.1 billion, HK$7.20.8 billion Hong Kong dollars, 67HK$9.8 billion, HK$5.6HK$8.7 billion, HK$50.0HK$1.6 billion, HK$4.4HK$8.8 billion, HK$43.8 billionHK$2.3 billion and HK$3.7HK$0.2 billion.
Industry insiders believe that "embracing" high-dividend assets has become a consensus of southbound funds, and sectors such as energy, telecommunications, and utilities are more favored by funds.
Industry insiders believe that high-dividend assets will continue to be favored by funds by virtue of their stable cash flow and dividend advantages, which can be compared to "fixed income +" investment to a certain extent. "According to statistics, from a time span of 3 to 5 years, the risk-adjusted returns of high-dividend strategies are significantly higher than those of mainstream ** and bond indices. Fang Xuyun, manager of Da Mo Multi-Income Bonds, said.
In addition to high dividends**, growth stocks are also favored by southbound funds, among which some pharmaceutical, electronics, and new consumer sectors have been significantly increased by southbound funds, such as Tigermed, Goldwind, Hongjiu Fruits, Pharmaron, and CanSino Biologics, which have received significant increases in southbound funds since July 2023.
Taking the biopharmaceutical industry as an example, as of January 5, 2024, the shareholding ratio of southbound funds in Tigermed since July 2023 has increased from 1809% rose to the current 36%, increasing its holdings by 22.06 million shares. During the same period, the shareholding ratio of southbound funds in CanSino Biologics increased from 229% rose to 3558%, an increase of 168230,000 shares.
Haitong International said that with the recovery of market sentiment, southbound funds have gradually flowed into the Hong Kong market, mainly increasing positions in growth sectors such as pharmaceuticals and electronics and high-dividend sectors such as finance.