Foreign A-shares “scanning” again: 150 billion net inflows hit a new high in the year
Source: Wind Information After the closing on September 20 (before the opening on September 23), the FTSE Russell A-share capacity expansion arrangement will be implemented.
In addition, prior to the opening on September 23, the S & P Dow Jones Indices ‘S & P Emerging Markets Global Benchmark Index A-share capacity expansion arrangement will also be implemented.
In the late trading, before the previous index adjustment performance reappeared, there was a high probability that Northbound funds were “sweeping” crazy in the late trading, resulting in stock market movements.
On May 28, MSCI’s expanded tolerance was implemented for the first time, and Northbound funds flowed in sharply at the end of the day.
Northbound funds had a net inflow of over 11 billion at the end of the round of bidding. The Shanghai Composite Index and the Shenzhen Composite Index all rose abnormally, with a number of heavy stocks rising.
On August 27, MSCI expanded its capacity for the second time, with a net inflow of northbound funds of 112 that day.
7.1 billion yuan, a new high since December 2018.
However, the market surged that day, and funds may enter earlier.
However, at the end of the collective bidding stage, the net inflow of northbound funds exceeded 24 billion at one time, but also exceeded 12 billion euros.
After successive rises, some funds made profits and fled.
On Sept. 20, on the eve of S & P Dow Jones’ simultaneous expansion of FTSE Russell’s capacity, Northbound funding appeared again.
Wind data show that the net purchase of funds on the north of the day was 148.
US $ 6.2 billion, a new high since its inception, and foreign countries have clearly overweighted their purchases.
Net buying this month was 607.
68ppm, this year has gradually bought 1823 net.
67 trillion, since the opening of the net purchases gradually reached 8241.
01 billion, a record high.
(Image source: Wind financial terminal “Shanghai-Shenzhen-Hong Kong Stock Connect Express”) Although the market was a little dull on September 20, the real highlight has begun.
And the stock index also changed again, especially the Shenzhen Stock Exchange index in the late trading again appeared a straight line trend.
In terms of individual stocks, foreign stock adjustments caused significant stock market changes. According to Wind data, on September 20, Northbound funds clearly purchased Ping An Bank, Ping An and Wuliangye.China Merchants Bank, Hengrui Pharmaceutical and other blue-chip high-performance stocks are also the first choice for foreign grabs.
These stocks have generally achieved better progress, especially Ping An of China, and Maotai, Guizhou, and other regions have seen significant gains in late trade.
However, there were also a few significant minority shareholders who fled, among which China National Travel Net foreign sales reached 3%.
9.5 billion ranked first, and the geographical location of Shanghai Airport was also net-sold by foreign countries1.
On the plate, the rapid decline of China National Travel Service and Shanghai Airport in the late period is clearly visible.
This also reflects the obvious foreign exchange adjustment of stock returns.
As a major source of incremental funds for the A-share market, hundreds of billions of foreign goods are being ferociously swept, and foreign capital flowing in through the Shanghai / Shenzhen Stock Connect plays an important role.
After undergoing a wave of 天津夜网 adjustments in April and May, since June, the net purchase amount of Kitakami funds has gradually increased rapidly, from less than 700 billion U.S. dollars in early June to the current over 820 billion U.S. dollars, with an interval increase of over 120 billionyuan.
Especially since August 19, in the past month, net purchases reached 80 billion.
Passive construction of 4 billion U.S. dollars of funds According to the preliminary announcement by S & P Dow Jones, 1,099 A-shares were completed with a 25% replacement factor on their index system before the opening on September 23; FTSE Russell’s quarterly adjustment in September 2019The list will also take effect on the same day. This time FTSE Russell will increase the division factor of China A shares from 5% to 15%.
According to the official calculation of the Air Force 成都桑拿网 FTSE Russell, the second step expansion in September 2019 is expected to bring in passive capital inflows of $ 4 billion to A shares.
Plan to launch more A-shares onshore index Managing Director of FTSE Russell Asia Pacific, Head of Asia Pacific Region, Information Services Department of London Stock Exchange, Jessi Pak said in an exclusive interview with China Securities Journal reporter on the 20th that 2020 FTSE RussellThe three steps of the first stage of A-share division will be completed, and the separation factor of A-shares in the corresponding index will be 25%.
As the index giant divides into A shares, passive funds will increase the allocation of A shares.
Compared with passive funds, the pace of active funds is relatively slow, but Bai Meilan said that active funds are currently increasing their interest in A shares.
There are multiple reasons behind this.
She noticed that many recognized foreign exchange institutions are adding A-share research positions, and their research output on A-shares has also increased.
At the same time, there are more and more lectures and roadshows on A-shares provided by relevant exchanges, index companies, and other market institutions, which can allow global investors to better understand the A-share market.
In this process, the expectations of global investors about A-share investment will also reach the exchanges or relevant regulatory agencies. Bai Meilan said that next time FTSE Russell plans to establish more onshore indexes, for example, A-share ESG index and smart beta index are planned.
In addition, FTSE Russell itself issues related A-share indexes based on customer needs.
In addition, many people have noticed that each time FTSE Russell’s review list contains a small number of A-share microcaps, but eventually the final list of the global stock index series does not have microcaps.
In progress, Bai Meilan explained that she wanted to show customers that FTSE Russell has reviewed eligible A-share microcap stocks, but the main investment target of customers is still large, medium and small cap stock indexes.
The net purchase amount of Beishang Fund is not synchronized with the trend of the Shanghai Index. From the perspective of the rise and fall of the Shanghai Stock Index when the net purchase amount of Beishang Fund exceeds one billion US dollars a day since this year, it is not that the purchase amount increases the Shanghai index.
Generally speaking, when the net purchase amount in a single day exceeds 50 billion yuan, the Shanghai Index will decline in only 2 days, and the Shanghai Index will increase less than 0 in 3 days.
5%, and the highest net purchases on September 20, the Shanghai Index rose only 0.
24%, or it may reflect some differences in the market.
In the future, there will be more foreign entry sites. According to estimates by Minsheng Securities, the second step of “getting rich” in September will bring in 28 billion US dollars of passive funds and 6 billion yuan of active funds, which will attract a total of 34 billion US dollars in inflows.
S & P divided by A shares will bring RMB 18 billion in passive funds and nearly 65 billion in active funds, which will collectively attract over USD 80 billion in inflows.
In other words, even passively allocated funds will reach 46 billion yuan.
The UBS Securities China Equity Strategy Team has divided China A shares into global stock indexes, saying that after the close on September 20, a new stage of global stock index conversion into Chinese A shares will be ushered in. The FTSE A factor will be increased from 5% to 15%For the first time, the S & P Emerging Markets Global Benchmark Index replaced A shares with a 25% complement factor.
It is expected that the A-share market in 2019 will record more than 20 billion US dollars of passive communication net flow.
In terms of active funds, if global / emerging markets / Greater China active funds based on the MSCI index are standard A shares in their portfolios, the net inflow of active earnings in 2019 will be as high as US $ 56 billion.