Foreign capital often has the influence of the best weather vane, and this time is no exception. When A-shares returned to the 3,000-point mark, northbound funds continued to flow into A-shares sharply, and the net inflow of northbound funds reached 166 on February 290.3 billion yuan.
Once again, the net inflow of foreign capital exceeded 10 billion, reflecting that foreign investment confidence in the A** field began to gradually pick up, as an important incremental capital of the A** field, the attitude of foreign capital began to improve, which will be conducive to the continuous recovery of the capital environment.
In 2023, there were signs of inflows followed by significant outflows, especially from August to November, when the outflows of northbound funds accelerated, and led to a multi-year low in net inflows for the whole of 2023.
The net flow of northbound funds is not only a weather vane, but also a barometer of economic confidence. As northbound funds began to shift from net outflows to net inflows, it also reflected, to a certain extent, that foreign investors' confidence in China's economy began to increase, and they also benefited.
According to the data, on February 29, there was a significant net inflow of northbound funds of 1660.3 billion yuan, and the net inflow of northbound funds reached 65.5 billion in the past month9.5 billion yuan. In the past month, excluding the factors of the Spring Festival holiday, ** has shown an **upward trend, and the northbound funds that were in large quantities a month ago have obtained considerable investment returns.
On February 5 this year, the Shanghai Composite Index hit 263509 low, after less than a month, the A** field has gone from 2635 points to 3031 points, and the short-term cumulative maximum increase is close to 15%, basically establishing the intermediate level
As shown in the above data, the net inflow of northbound funds reached 655 in the past month9.5 billion yuan means that northbound funds have once again bought the bottom of A-shares and reaped considerable benefits from it. It is undeniable that the impact of northbound funds cannot be underestimated.
The sustained net inflow of foreign capital often indicates that there is no need to worry about it for the time being. If northbound funds begin to show signs of continuous large net outflows, then this is the time to be vigilant. As a northbound fund with a sense of foresight, it will occupy a relatively large investment advantage in market information, policy research and judgment and company research, etc., when foreign funds begin to sell aggressively, it may mean that the inflection point is also very close.
This time, the ** outsole was not only bought by foreign funds, but also by national team funds and some industrial capital.
In fact, at around 2700 points, we can find that there will be traces of many national team funds in mainstream ETFs, including CSI 300 ETF, SSE 50 ETF, etc. From the perspective of national team funds, this kind of core ETF can have a good impact on the entire market index on the one hand, and on the other hand, the trading volume of the ETF is active and the trading scale is large, which is conducive to the inflow and outflow of large funds. In addition, for large funds, they can also use ETFs for arbitrage, which has strong investment flexibility.
As for industrial capital and all kinds of institutional investors, they are in the bottom area and have begun to do so. Behind the large-scale investment of all kinds of capital, it also reflects that the investment value of the current market has been recognized by large funds. After successively completing the exploration of the policy bottom, the valuation bottom and the market bottom, this round of in-depth adjustment is expected to gradually come to an end, and the inflection point may follow.
Northbound funds have a large number of ** A-shares, reflecting the current high confidence of foreign investors in the A** market. As long as the policy environment and capital environment continue to be stable, foreign capital is also expected to maintain a net inflow trend, and incremental funds have a positive impact on the upward expansion of the future.