BEIJING, Oct. 29 (Xinhua) -- Overseas institutions scaled up their purchasing of A-shares through northbound trading under the Stock Connect program on Thursday, with daily net purchasing at 7.17 billion yuan, reported Xinhua Finance Friday.
Under the Shanghai-Hong Kong stock connect, foreign institutions reported net purchases of 4.56 billion yuan A-shares and contributed 2.61 billion yuan of net purchases of A-shares via the Shenzhen-Hong Kong stock connect.
In a longer term, net purchasing of A-shares through northbound trading is expected to reach a new high this year. In the third quarter, net capital inflows through the Shanghai-Hong Kong and Shenzhen-Hong Kong stock connect programs reached 68.2 billion yuan in total.
Zhang Qiyao, chief strategist with Industrial Securities attributed the recent hefty overseas capital influx into A-share market to speculations on appreciation of the Renminbi (RMB) and the recovered risk appetite of global investors.
In his opinion, short-term investment contributed over a half of the recent overseas capital inflows and if this round of RMB appreciation slows down, capital influx via northbound trading is likely to return back to portfolio investment, which may be stable.
In the third quarter, overseas investors added through northbound trading their positions of new energy and manufacturing stocks, hinting preferences similar to those of publicly-offered funds.
Nevertheless, overseas investors merely slightly added, different from publicly-offered funds, their positions of new materials stocks, but hunted bargain in consumption stocks from July to September.
Previously in 2019, net capital flow through northbound trading amounted to a historical high at 351.74 billion yuan.
In the first three quarters of this year, net capital inflows via northbound trading rose to 291.85 billion yuan, a new high since the comparable periods of previous years. (Edited by Duan Jing with Xinhua Silk Road, duanjing@xinhua.org)
A single purchase
