New logic of A-share investment hidden behind two trillion yuan capital data

category:Finance
 New logic of A-share investment hidden behind two trillion yuan capital data


It can be seen that with the rebound of this round of a shares, the hot flow of funds has become the focus of the market. In particular, the breakthrough of Beijing Capital and the two financing funds at the trillion yuan level has attracted hot discussion among investors. The author believes that behind the two trillion yuan, it is not only the most powerful sign of A-share market recovery, showing that the fund side is optimistic about the future market and investors confidence is enhanced, but also indicates that all parties are optimistic about Chinas future economic development potential.

According to the latest data, in 2019, Chinas gross domestic product (GDP) is expected to be close to 100 trillion yuan and the per capita will step up to 10000 US dollars.

Relevant experts believe that under the background of slowing growth of world economy and international trade and pressure on domestic economic growth, GDP has reached a new level, indicating that Chinas economy is resilient and full of momentum. In the long run, under the two core driving forces of technological progress and production efficiency improvement, Chinas economy has a good momentum and huge development potential.

It has been more than five years since the official launch of the Shanghai Hong Kong stock connect in November 2014, and the inflow of capital to the North has entered an accelerated stage in the last two years.

In 2019, Chinas capital market has made important progress in expanding and opening up. With the inclusion or expansion of A-share by major international indexes, global capital is increasing its strategic allocation of A-share. In 2019, foreign capital continued to flow into the A-share market, and the accumulated net inflow through the interconnection mechanism reached 351.743 billion yuan.

It can be seen that the acceleration of the inflow of foreign capital into A-shares shows that A-shares are in a low valuation position in the global capital market and have certain attraction. On the other hand, it shows that under the background of Chinas economic stability, the value of a number of high-quality companies is recognized by foreign capital.

Standing at the milestone of 1 trillion yuan, for the future trend of foreign investment, some insiders believe that the allocation of foreign capital to a shares will continue to increase in the next 10 years, and the mode of buying and buying will not change.

In general, northbound capital is still dominated by long-term logic, and its continuous inflow not only affects the pricing of some sectors, but also promotes the change of A-share investment logic.

On December 18, 2019, the total balance of margin trading in Shanghai and Shenzhen stock markets reached 1006.846 billion yuan. This is the first time since April 16, 2018 that the balance of the two financial sectors has returned to trillion yuan.

Statistics show that as of January 2, 2020, the balance of Shanghai and Shenzhens two financial markets totaled 1025.075 billion yuan, an increase of 18.229 billion yuan compared with December 18, which is in a steady growth trend.

There is a strong correlation between the two financing balances and A-share market. In recent two years, trillion yuan has always been the bottleneck of the balance of the two financing. Guo Yiming, chief investment adviser of Jufeng investment consulting, said that at present, no matter from the valuation level, investor sentiment and the incremental capital inflow brought by the three international indexes Na a, the positive factors have increased significantly, which may continue to boost the balance of the two financing.

For this years market funds, Haitong Securities strategy team predicts that the net inflow of stock market funds will exceed 1 trillion yuan in 2020. Among them, retail capital is expected to flow into 600 billion yuan, leverage capital is expected to flow into 400 billion yuan, and the bull market will rise in 2020.

In a word, with Chinas economic aggregate reaching a new level, the market confidence is rising steadily, and the hot flow of capital undoubtedly brings a new investment mode and new investment opportunities to the A-share market.

Source: responsible editor of Securities Daily: Yang bin_nf4368