49.5 billion, foreign capital accelerated to return to the Chinese stock market

Our reporter Zhao Juezhen, Wu Qian, Special Journalist in the United Kingdom and the United States, Ji Shuangcheng

Editor's words: "It's a good time to return to the Chinese market now." The Financial Times recently reported that international institutions, including Oriental Huili, the largest asset management company in Europe, high -profile stated that the Chinese stock market is optimistic about the Chinese stock market. stock". The European and American stock markets have fallen more recently, and international investment institutions and private retail investors have shifted to more stable income investment markets. "Smart money" from the international market has once again stared at the A -share market. Which overseas capital is optimistic about the Chinese stock market? Which stocks they favor China? What changes will foreign capital bring to the Chinese stock market? "Global Times" reporters investigated this.

"A great opportunity to buy Chinese stocks"

On the 15th local time, the Fed announced a rate hike of 75 basis points, which was the largest since 1994. The Federal Reserve President Powell said that the interest rate hikes of 75 basis points will not become the norm. Affected by this, the three major stock indexes in the US stock market plummeted on the 16th. On the 13th, the three major stock indexes of the US stocks plummeted, of which the S & P 500 closed down 151.23 points, a decrease of 3.88%, the lowest since January 2021, and has been in a technical "bear market" for the first time since 2020. Driven by the Federal Reserve, Britain, Canada and other countries have sacrificed hikes. Morgan Chase's global total fixed income strategy director Mels Brad Shao recently stated that "(Europe and the United States) economy is slowing, interest rates have risen, and monetary policy has not relaxed. (China) For your European and American fixed income portfolios It's a good diversified channel. "

The British "Financial Times" reported that the emotions of global investors are rapidly changing, and they bet that the Chinese government can guide the world's second largest economy to achieve recovery. Mo Tir, the chief investment officer of Oriental Huili, the largest asset management company in Europe, said that after the first quarter of the first quarter, the company is now more optimistic about the Chinese stock market. Chance". Dongfang Huili has more than $ 2 trillion in funds worldwide. It favor Chinese stocks involving domestic business, including non -essential consumer goods, industrial and medical care sectors. The company's flagship China stock fund currently manages $ 578 million in assets Essence

After the Shanghai Composite Index's low point at 2863.65 points on April 27, the "smart money" from the international market once again followed the A -share market again. JPMorgan Chase global market strategist Tilman Teller recently said, "At present, the price -earnings ratio of the Chinese market is 20%lower than the long -term average ... From this perspective, from our opinion, the Chinese stock market has begun to appear more attractive. We need to consider some of these disadvantages that have begun to fade, and some even become favorable factor. "

"The evacuation of international investors from the Chinese stock market has reversed, which highlights the rapid transformation of market emotions, because investors bet on the world's second largest economy will usher in recovery." : The essence of international investors' confidence in the A -share market comes from confidence in China's economic growth, and policy support and resumption of work are the two most critical factor.

Li Daxiao, the chief economist of British Securities Securities, told the Global Times reporter that the attitude of foreign investment in the A -share market has "completely reversed", and it was previously concluded that "no attractiveness" was turned into big buying. Some leading stocks have recently risen from low, and the change of foreign investment attitudes is an important reason.

Liang Haiming, Dean of the Silk Road Zhigu Research Institute, told the Global Times reporter that international funds are optimistic about China's economic prospects, mainly because the Chinese government promotes various policies to stimulate the economy. The Chinese economy is expected It is the most direct market.

Liang Haiming said that due to the sharp interest rate hike in the Fed to curb inflation and the US economy faces greater risk of recession, US stocks led the global stock market in June. At the same time, the Japanese yen has recently depreciated seriously, and the currency of other countries in Asia has also depreciated, making international investors feel that recently it is not a good time to invest in these countries. Based on risk aversion, global capital enters Chinese A shares.

Which foreign capital is investing in A shares

At present, the main ways for foreign investors to purchase A -share listed companies include the Shanghai Stock Connect and QFII (qualified foreign institutional investors) of the Shanghai Stock Connect and Shenzhen Stock Connect. According to the report issued by the Shen Wanhongyuan Institute, as of the end of 2021, Land Stock Connect and QFII held a total of 4.2 trillion yuan in A shares, accounting for 5.6%of the total market value of A shares. According to statistics released by the China Listed Companies Association, the total market value of A -share listed companies at the end of 2021 was 9.653 trillion yuan.

Statistics show that since June (as of the 16th), a total of 49.497 billion yuan in the northbound funds that have entered the A -share market via Shanghai -Hong Kong Stock Connect and Shenzhen -Hong Kong Stock Connect have entered the A -share market. The monthly realization, there are also multiple consecutive trading days to buy. Earlier, the cumulative net purchase of northbound funds in May was 16.867 billion yuan. Compared with the net purchase of 6.301 billion yuan in April and 45 billion yuan in March, it had a clear trend reversal.

In London, the folk investor Tom Trinson told the Global Times reporter that he invested in China's e -commerce and online video platform stocks two years ago. It does not affect his confidence in the Chinese market. On the basis of the original £ 100,000 investment, Tomlinson added £ 50,000. Tomylson believes that the Chinese people's traditional holiday consumption habits, convenient electronic payment models, and a large number of private savings are not available in the Western market. He said that Shanghai had previously fell into production because of epidemic prevention, but after the epidemic was controlled, the speed of rebounding in the Chinese economy could also be fast. Therefore, the phenomenon of recent foreign capital continued to pour into the Chinese market is not a short -term behavior. Howard Howard, a European investor with a longer investment time in China, told the Global Times reporter that he never had fantasies about investing in short -term gains in the Chinese market. Time, but the worst stage of the stock market is over. He is currently investing in China's new energy vehicle manufacturers' stocks listed in Hong Kong and US stocks. They have invested a total of 200,000 pounds, hoping that they can double their profits within 5 years.

A -share and US stocks

On the 16th, the Shanghai Index closed down 0.61%, the Shenzhen Index rose 0.11%, and the GEM index rose 0.4%. It is reported that the GEM refers to increased by 20%from the low point on April 26, and has entered a technical "bull market". Bloomberg said that China ’s industrial added value was rebounded unexpectedly on Wednesday, and the total retail sales of social consumer goods were also better than expected, which further boosted investors' confidence.

A report released by the Wall Street Journal this month also mentioned that although the market turmoil has covered the global IPO (the first public offering) event, China's new shares listed are still breaking the record. According to data provided by Dealogic, in Mainland China, the IPO financing scale has accumulated more than 33.8 billion US dollars since this year, not only higher than the US $ 30.4 billion in the same period last year, but also the highest level of the same period since 2009. In contrast, the cumulative amount of global IPOs that have been priced at the same period at the same time were more than $ 90.2 billion, a decrease of 71%.

Li Daxiao believes that China's monetary policy and fiscal policy are in a loose stage, which is in sharp comparison with the tightening of the Federal Reserve. In response to the main contradiction of inflation, the US monetary policy must change from relaxation to contraction, which is not good for the international market including A shares. But in the disadvantage, A shares can be a "shelter" relatively speaking.

Yang Delong, the chief economist of Qianhai Open Source, believes that US stocks are currently at a high historical decline, while A -shares and Hong Kong stocks are at the bottom of the historical valuation, and the correlation between the A -share market and U.S. stocks has not been high. When U.S. stocks rose sharply, A shares did not follow up. From the perspective of the trend of the two markets, the possibility of the A -share market out of independence is existing. The recovery of the short -term A -share market is also a correction of a large rebound in the market some time ago.

Li Daxiao said that overall, the proportion of foreign investment in China's stock market is still very low, especially compared with China's contribution to global economic growth. From the perspective of trend, although there may be repeated, foreign capital flowing into the Chinese market should be a future direction. ▲

- END -