Today (March 15), the net outflow of funds from the North was another 16.024 billion yuan, the seventh consecutive trading day of net outflow. Since the beginning of March, foreign capital has “fled” 64.525 billion yuan. According to the data, from the beginning of the year to January 24, foreign capital continued to increase its positions in a shares, and the net inflow of northward capital once reached a high of 46.299 billion yuan during the year, but then the situation reversed. By March 9, it had “returned to zero”, and today it has accumulated an outflow of 43.771 billion yuan.
However, since March, some of the targets have still been bought by foreign capital. The data show that as of March 14, foreign capital mainly increased its holdings in non-ferrous metals, public utilities and other industries. In terms of individual stocks, Sungrow Power Supply Co.Ltd(300274) is the most favored by foreign capital.
Specifically, as of the 14th, only eight industries had received foreign capital holdings this month, followed by non-ferrous metals (1.83 billion yuan), public utilities (1.084 billion yuan), architectural decoration (998 million yuan), national defense and military industry (364 million yuan), media (311 million yuan), communication (307 million yuan), agriculture, forestry, animal husbandry and fishery (150 million yuan) and real estate (102 million yuan). In addition, the top three industries in which foreign capital reduced its holdings this month are food and beverage (- 12.33 billion yuan), banking (- 5.993 billion yuan) and non bank finance (- 5.914 billion yuan). In terms of individual stocks, four companies gained more than 1 billion yuan of “smart money”, which were Sungrow Power Supply Co.Ltd(300274) (2.165 billion yuan), Nari Technology Co.Ltd(600406) (1.555 billion yuan), Zijin Mining Group Company Limited(601899) (1.276 billion yuan) and China Yangtze Power Co.Ltd(600900) (1.149 billion yuan).
In view of the recent continuous outflow of foreign capital, Haitong Securities Company Limited(600837) analysis shows that first, foreign capital from A-Shares may be disturbed at the transaction level. The elimination of Russia by MSCI and FTSE has prompted international investors to reduce the allocation of emerging markets. In addition, the recent rise of VIX Index has also led to the outflow of foreign capital from A-Shares to a certain extent. In addition, the recent fundamental data of A-Shares are poor, and the RMB exchange rate has also depreciated. The social finance data in February is lower than the market expectation, which has put pressure on foreign capital.
Looking forward to the future trend of foreign capital, Haitong Securities Company Limited(600837) believes that foreign capital has also withdrawn A-Shares sharply in stages in history, but if we look at the year, from the opening of Shanghai Hong Kong stock connect in 2014 to going north in 2021, the capital flows into A-Shares net every year. Up to now, the proportion of A-Shares in the global portfolio is still very low. In 2020, the market value of A-share listed companies has reached 13% in the global capital market, while the weight of A-Shares in msciacwi index is only about 0.4%. In the future, with the rapid increase of the importance of China’s economy in the world, the inflow of foreign capital into A-Shares is still a long-term trend for a long time.
