Comments on the rebound of A shares + H shares: overseas marketsNewslotsitesDue to stagflationNewslotsitesU. S. stocks rebounded and re-inflationary trading continued, but the risk of stagflation was low. The strong performance of the technology industry led to a rebound in US stocks, with quarterly results from companies such as Microsoft and Google exceeding expectations, stimulating market enthusiasm for investment in artificial intelligence. At the same time, the US dollar continued to rise passively, breaking the 158 mark against the yen, reaching a 34-year high, causing some overseas funds to shift to A shares and Hong Kong stocks. In the domestic market, multiple positive factors have promoted the recovery of A-share sentiment. Recently, Hong Kong stocks led the world, with the net inflow of northward capital reaching a record high, mainly due to the nature of risk aversion, the increase of foreign capital positions, policy support and foreign optimism on Chinese real estate.
The central bank said that the adjustment of national debt triggered the switch between stocks and bonds, and the central bank once again reminded the risk of long-term debt in response to the demand for gradually increasing the buying and selling of treasury bonds. At the same time, the real estate purchase restrictions were liberalized, resulting in the flow of some bond market funds to the stock market. According to the exchange and feedback of foreign investment, a number of international institutions have increased their allocation to the Chinese market, mainly by increasing their holdings of Hong Kong stocks and A shares. Foreign institutions have continued to increase the allocation of US and Japanese stocks over the past three years, and their allocation to the Chinese market is relatively low, so they have the idea of adjusting their position structure. With the devaluation of currencies in the Asian region, foreign investors accelerate the adjustment of positions, H shares benefit first, followed by A shares.
At present, foreign capital allocation needs to fill a gap of about 80 billion, which is expected to take about 20 trading days to complete. The impact of the return of foreign capital on the market may break the balance between A shares focusing too much on low dividends and various themes, and the market may re-focus on institutional white horse stocks. This round of foreign capital inflows may be transactional, do not necessarily think that China's fundamentals repair, and may not last too long. The UBS report also shows that the rating of the mainland stock market has been upgraded to "overweight", and the rating of Hong Kong stocks has also been upgraded to "overweight". UBS believes that the fundamentals and profits of the Chinese stock market are still good, there are preliminary signs of a rebound in the consumer market, and consumer confidence has improved, which makes the bank more optimistic about the profit outlook for Chinese stocks. Overall, the return of foreign capital may form a relay effect to a certain extent, which has a positive impact on the A-share market. However, investors need to note that the persistence of foreign capital allocation may not be too long, and the impact of foreign capital return on the market is only for reference.
Keywords overseas, US debt, US stock bullish bearish (bullish) foreign capital inflows, policy support, good economic data, foreign investment, bottom! Hexun self-selected Stock Writer risk Tip: the above content is only the views of the author or guest, does not represent any position of Hexun, and does not constitute any investment advice related to Hexun. Before making any investment decision, investors should consider the risk factors related to investment products according to their own circumstances and consult professional investment advisers if necessary. Hexun tries its best but cannot confirm the authenticity, accuracy and originality of the above content, and Hexun does not make any guarantee or commitment.