The monthly net inflow exceeded HK 24.5 billion, and southbound funds favored Zhongzitou Hong Kong

Mondo Finance Updated on 2024-03-02

In February, the port ushered in. According to wind data, as of February 29, the monthly range of Hong Kong stocks**, the Hang Seng Index** was 663%;Southbound funds have had a net inflow for 11 consecutive trading days, with a monthly net inflow of over HK$24.5 billion. From the point of view of the southbound capital concentration net, the "Chinese prefix" is the most favored.

Analysts said that the expected improvement in Chinese mainland's economy is more positive than overseas liquidity disturbances, and the sentiment in Hong Kong has improved. Looking ahead, Hong Kong stocks may be on the upside, while still being wary of the risk of downward revision of profits.

Southbound funds have been net inflows for 11 consecutive days.

In February, the Hong Kong market ushered in the first market, and the southbound funds also maintained a net inflow trend.

According to wind data, the Hang Seng Index was **6 in February63%, the Hang Seng China Enterprises Index and the Hang Seng Tech Index were ** 16% respectively in the same period. As of February 29, Hong Kong stocks**, southbound funds have had a net inflow for 11 consecutive trading days, with a monthly net inflow of 245HK$2.6 billion, the highest monthly net inflow since October 2023.

Among the Hang Seng industry sectors, the real estate and construction sector is the most favored by southbound funds, ranking first in the monthly net amount of southbound funds; Energy, Telecommunications, Utilities, Consumer Discretionary and Financials all ranked high in terms of net southbound funding.

From the point of view of centralized net **, "Zhongzitou" has become the "favorite" of southbound funds. According to the statistics of wind's active capital flow, in the top 10 list of southbound funds in the past 1 month, CNOOC, China Mobile, China Telecom, Bank of China, and China Tower are all on the list, and occupy half of the list. In addition, blue-chip stocks such as WuXi Biologics, Meituan-W, and Li Auto-W have also attracted the attention of southbound funds. Tencent Holdings ranked first in the top 10 net sales of southbound funds in the past one month.

For the continuous influx of southbound funds, Wang Yi, chief analyst of Huatai ** strategy, judged that the high AH premium may guide southbound funds to continue to increase their positions in Hong Kong stocks. Wang Yi pointed out that since late January, the Shanghai-Hong Kong AH premium index has been running at a high level of more than 150, and the AH premium of banking, non-banking, consumer services and other industry sectors is at a relatively high level since 2010.

Hong Kong stocks are still consolidating their bottoms.

Hong Kong** market ** large**, southbound funds continue to pour in, what signal does this release?

Zhao Hongmei, director of the research department of Zhongtai International, said that the recent policy release has effectively improved the capital sentiment and supported the Hong Kong market in the short term. Huang Kaihong, strategic analyst of Guotai Junan International, said that recently, the expected improvement of Chinese mainland's economy is more beneficial than overseas liquidity disturbances, the sentiment of Hong Kong ** market has improved, southbound funds continue to net inflow, and Hong Kong ** market continues to rise.

Looking forward to the market outlook, Zhao Hongmei believes that the formation of a sustained upward trend in Hong Kong requires the cooperation of improving fundamentals and active fiscal policy. She reminded that the current strong dollar is still putting pressure on capital flows, and it is necessary to be vigilant against the risk of downward revision of earnings in the future, and the trend of Hong Kong stocks may still be more volatile. Huang Kaihong believes that at present, the Hong Kong market is still consolidating the bottom; From a medium-term perspective, the Hong Kong market will maintain an upward trend.

From the perspective of allocation, Huang Kaihong believes that the high-dividend style of the Hong Kong market still has allocation value, and the short-term growth style may outperform. Zhao Hongmei is optimistic about energy, telecommunications, public utilities and other central state-owned enterprises-related targets, as well as the raw material sector boosted by the post-holiday start-up. Combined with the meso-economic data, Wang Yi said that the industries currently in the bottoming or climbing stage are mainly the game industry, the semiconductor industry, and the middle and upstream material industries such as steel, aluminum, and copper. Wang Yi pointed out that in the game industry, the number of domestic game versions exceeded 100 for two consecutive months, and the interval between imported game versions was shortened from about 4 months to 2 months, and the industry boom showed signs of recovery; China's and the world's semiconductor sales and domestic integrated circuit production continued to rebound year-on-year; The middle and upstream materials have stabilized, and we should pay attention to the follow-up policy catalyst.

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