BEIJING, Jan. 13 (Xinhua) -- Northbound investors, referring to investors trading A-shares through the Chinese mainland-Hong Kong stock connect schemes, added more than 50 billion yuan of A-share holdings in last seven trading days, reported Xinhua-run Shanghai Securities News on Friday.
As a matter of fact, northbound investors kept raising their A-share holdings since the beginning of 2023, signaling their confidence in the A-share market.
On Thursday, they contributed net capital inflows of 9.545 billion yuan into the A-share market, which sent their net A-share buying in last seven trading days to more than 50 billion yuan.
It also marked the first time for northbound capital to report more than five billion yuan of net daily A-share buying for six consecutive days since December 2022 while combined turnover on Shanghai and Shenzhen stock exchanges fell below 700 billion yuan on Thursday.
After going through the recent rallies since the start of this year, valuation of both blue chip stocks and growth stocks on the A-share market recovered notably, but investors generally remained relatively prudent before the upcoming Spring Festival in late January, said Everbright Securities.
In light of the habitual profit taking demand before the Spring Festival, the short-term fluctuations on the A-share market is normal, held Everbright Securities, highlighting that continued large amount of net capital inflows contributed by northbound investors indicated relatively controllable correction risks on the A-share market.
Apart from these, the securities broker suggested investors should seize the chance to deploy investment in suitable A-shares again given the ongoing "honey moon" period for them created by related policies at present. (Edited by Duan Jing with Xinhua Silk Road, duanjing@xinhua.org)
A single purchase
