BEIJING, Oct. 30 (Xinhua) – Southbound investments, which refer to fund flowing into Hong Kong stock market via the Shanghai-Hong Kong Stock Connect and Shenzhen-Hong Kong Stock Connect programs, exceeded 460 billion yuan from the beginning of this year, reported Xinhua-run Shanghai Securities News Thursday.
The newspaper cited data with Choice, a financial data platform as saying, highlighting that the sluggish performances of Hong Kong stock market by far this year did not hamper the robust southbound investment.
By Wednesday, the Hang Seng Index (HSI), a market capitalization-weighted index of the largest companies that trade on the Hong Kong bourse, retreated more than 12 percent over the end of 2019 and lagged far behind the Shanghai Composite Index which rose 7.18 percent during the same period.
Currently, the relatively low valuation of Hong Kong stocks compared with other markets worldwide represents a good timing for long-term investment alongside the gradually improved risk appetite of investors, held many fund managers.
Latest quarterly financial results of fund products showed that publicly-offered funds kept adding their positions of Hong Kong stocks in the first three quarters.
By the end of September, a fund managed by Xiao Nan, a fund manager with E Fund, had 29.75 percent of its net value contributed by the market cap of Hong Kong bourse-listed stocks.
Analysts with HSBC Jintrust Fund Management Co., Ltd. reckoned that Hong Kong stock market stays still among the stock markets with the lowest market capitalization at present as the price to book ratio of the HSI hovers around its 10-year average, which indicates relatively high attractiveness.
In the rest of the fourth quarter, a round of upward correction driven by improving corporate profits and recovered investors risk appetite may arrive, according to analysts with the HSBC Jintrust Fund Management Co., Ltd. (Edited by Duan Jing with Xinhua Silk Road, duanjing@xinhua.org)
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