Hundreds Of Billions Of Funds Go To The Bottom Of Hong Kong Stocks To Buy Banks And Internet Leaders.

The Shanghai Shenzhen Hong Kong Tong which has been running for several years has seen a rare sight in history, that is, the continuous large scale outflow of capital in the north, while the southern capital is crazy to buy and buy.

According to the twenty-first Century economic report reporter's statistics, in the past 30 trading days, the southerly capital maintained a net inflow status on a single day, and the scale of single day net inflow continued to enlarge.

In March 19th, for example, there was a large purchase of Hong Kong stock assets from the southward capital, and the net inflow of the southern capital reached 14 billion 900 million yuan on that day. Since the resumption of trading in A shares in February 3rd, the total inflow of inward capital has exceeded 100 billion yuan. As a comparison, the cumulative net outflow of the north to the February 3rd has been close to 80 billion.

So what is the main factor that encourages domestic investors to buy Hong Kong stocks?

A rare buying wave.

The background is that the collapse of the financial market caused by the continued spread of the new crown disease continues, and there are many rare cases in the market. For example, the United States has repeatedly blown up, and many countries have even announced the moratorium on short selling.

In March 19th, the analysis of Liu Guojiang, a fund manager of Hong Kong stock exchange, said that at present, the excess returns of A shares relative to overseas markets are very obvious, and for the Hong Kong stocks whose fundamentals are convergent, the attraction of funds is significantly enlarged. Regardless of which market, the fundamentals determine the trend of stock prices. The domestic epidemic has basically been controlled. The mainland enterprises in the Hong Kong stock market have a short-term impact, but they are weak for a long time.

The historically large purchase of southerly capital is accompanied by a sustained fall in the Hang Seng Index.

In January 20, 2020, the Hang Seng Index hit 29174 points, and once there was great hope to return to the 30000 point. But then the market plunged, and from January 20th to March 19th, the Hang Seng Index fell 7500 points, or 25%.

In a phased way, the sharp fall in the Hang Seng index began in March 6th.

The Hang Seng Index also suffered a sharp drop from the impact of the spread of the overseas epidemic and the collapse of other major overseas markets. The Hang Seng Index fell by 17% on the 10 trading day March 6th to date, that is, since January 20th, the decline in Hong Kong stocks has mainly occurred in nearly 10 trading days.

According to the combing of reporters, the capital inflow into the Hong Kong stock market began to enlarge. It is from this period that nearly 10 trading days, the average daily inflow of the southern capital reached 8 billion 600 million, approaching the highest level in history. Since the beginning of 2020, the total net inflow of funds from the South has reached nearly 200 billion yuan.

The statistics of CICC also showed that the southerly capital continued to flow into the net, and in recent years, with the Hong Kong stock market overtaking, the pace was obviously accelerated. The net inflow in January, February and March to today was 2 billion, 3 billion and 6 billion 400 million yuan, especially in March.

Zhang Ting, a fund manager of QDII, said in an interview with reporters: "we have observed that since February, there has been a continuous net inflow of funds in the south. This is mainly from the perspective of long-term value investment. The valuation of Hong Kong stocks is attractive compared with A shares and US stocks. Although short term global risk appetite has led to outflow of Hong Kong stocks from overseas funds, mainland agencies in the South have generally agreed that Hong Kong stock opportunities are greater than risks in the future.

Fu Shiwei, a senior investor in Hong Kong stock, said: "Hong Kong stock is now the absolute bottom area, whether from the valuation angle or from the relative trend angle or the premium angle, so the southern capital is constantly coming to the bottom of the Hong Kong stock market."

In fact, many investors in China are more convinced that the Hong Kong stock market has been in an undervalued state at present.

Buying bid to get together

Liu Guojiang said that in the medium to long term, every fall brings opportunities for deployment. We firmly believe that Hong Kong stocks are facing good long-term allocation value.

Zhang Ting told reporters: "from our recent survey of listed companies, many companies are not as big as the market imagined by the epidemic. At present, Hong Kong stocks have more fully responded to the epidemic, and their valuation and earnings expectations have been fully adjusted. Especially in the context of the global negative interest rate overlay epidemic, overseas funds will also return to Hong Kong stocks and find high-quality assets.

It is also a good idea to understand the logic of the purchase of Hong Kong stocks by the southward capital.

Twenty-first Century economic report reporter statistics show that at present, southerly capital buying stocks are getting together. Among them, nearly 30 trading days, construction bank, Tencent holdings and ICBC are respectively buying 30 billion 400 million, 15 billion 600 million and 10 billion 900 million yuan respectively, which has occupied half of the net capital flow of the southern side in the past 30 days.

Among the top ten, other companies are also concentrated on banking stocks and Internet technology companies.

For such a choice, tiger securities investment research team said that the overall valuation of Hong Kong stocks is in a relatively low historical position, of which important banking and financial assets have even been broken, and more importantly, the AH premium has increased. At the same time, the overall dividend yield of Hong Kong stocks is relatively high. At present, the stock price has fallen below net assets and even has the "bond" attribute. For more funds, Hongkong market financial stocks with higher dividend rate and lower volatility can substitute for bonds for risk parity.

Zhang Ting also said, "some stocks are favored by institutions, mainly because of their high dividends, low valuation and scarcity."

In addition to the high dividend yield of bank shares, part of the configuration logic of the Internet technology company is also related to the current epidemic situation. For example, the top ten companies in the south to buy funds, besides the Tencent, also have comments on millet and the US group.

Fu Shiwei told reporters: "the impact of the big Internet Co is relatively small, such as Tencent because its half or more than half of the business is mainly from the game related, under the epidemic situation, but on the game industry is relatively good."

Liu Guojiang told reporters that the source of funds in the south is a lot of insurance funds, and the undervaluation of insurance funds and the target of high interest rates, such as banks, also prefer some head companies with large market value growth industries, such as Tencent. These companies are partly affected by capital inflows and are relatively down this year.

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