Data show that on December 22, northbound funds sold a net 1.745 billion yuan throughout the day, for four consecutive days. On the same day, the Shanghai Stock connect net sold 1.706 billion yuan and the Shenzhen Stock connect net sold 39 million yuan.
Recently, the CSRC solicited public opinions on Revising the “Several Provisions on the trading interconnection mechanism between the mainland and Hong Kong stock markets” and strictly supervised the so-called “fake foreign capital”. Among them, the first paragraph of Article 13 of the provisions is proposed to be revised as “investors shall enjoy the rights and interests of stocks purchased through the trading interconnection mechanism between the mainland and Hong Kong stock markets according to law. Shanghai and Shenzhen Stock connect investors do not include mainland investors”.
China Merchants Securities Co.Ltd(600999) pointed out that according to the estimation of the position data of intermediaries, the shareholding scale of northbound funds entrusted by domestic intermediaries is no more than 100 billion yuan, accounting for no more than 4%, and the possible scale of “fake foreign capital” is low. In addition, the scale of northward capital flowing into A-Shares through foreign institutions is higher, which is also the main source of short-term northward capital fluctuations. In the short term, the emotional disturbance caused by supervision may weaken the short-term inflow power or even slightly outflow of “fake foreign capital”, but this part of capital may not be the main force of the recent north-east capital volume, and the possible scale of “fake foreign capital” is not high, and the marginal impact on North-east capital and A-Shares is expected to be limited. In the medium and long term, restricting mainland investors from participating in the land stock connect transaction is conducive to theoretically increasing the proportion of real foreign capital in the northbound funds, and plays a positive role in maintaining the stable operation and healthy development of the markets of Shanghai, Shenzhen, Hong Kong and the two places, so as to give better play to the attraction of the interconnection mechanism to foreign investors.
China Industrial Securities Co.Ltd(601377) also said that the volume of “fake foreign capital” is limited, and strict supervision will help to further eliminate the “noise” in northward funds and better highlight its “real foreign capital” attribute.
(economic information daily)
