BEIJING, Aug. 3 (Xinhua) -- China's A-share market embraced a net influx of 10.392 billion yuan of northbound capital or capital invested from Hong Kong into the Chinese mainland in July, reported Shanghai Securities News Monday.
The figure marked the fourth consecutive month of net influx of northbound capital into the A-share market, but was notably less than the 52.679 billion yuan for June, showed statistics from Choice.eastmoney.com.
In terms of accesses, 701 million yuan of net purchases were made through the stock connect program between the Stock Exchange of Hong Kong and Shanghai Stock Exchange and 9.692 billion yuan of net purchases were completed via the Stock Exchange of Hong Kong with Shenzhen Stock Exchange.
In spite of the fact that the July net influx data dropped about 80 percent over June, turnover of stock trading by northbound capital ballooned last month. According to statistics from CITIC Securities, northbound capital contributed 3.04 trillion yuan of turnover in July by July 29, accounting for 27 percent of their already realized turnover this year and much higher than the 1.37 trillion yuan monthly average during January and June.
In a word, northbound capital rushed into the A-share market when its bull run was in full swing in early July and rushed out when the market fluctuated in late July.
The drastic influx and outflow within a month was not regular for northbound capital, said analysts, adding that the frequent short term influx and outflow were mainly out of speculative investors.
The previous stable investment by northbound capital added to automatic perception of foreign investment, referring here to the assumed favor of core China assets and science and technology- and consumption-related stocks, held the strategic research team with Kaiyuan Securities.
In future, the influx and outflow of these active northbound capital may continue to appear, Kaiyuan Securities strategic research team said. (Edited by Duan Jing with Xinhua Silk Road, duanjing@xinhua.org)
A single purchase
