A way of foreign investment funds shares
The first one: to obtain foreign funding can apply for QFII (qualified foreign institutional investors) investment quota, have QFII status after the quota can invest in China's capital market.
- First, there is a total QFII quota;
- Each QFII institutions need to apply for approval for QFII status;
- Each QFII institutions still have their QFII quota.
Second: Buy Hong Kong and Shanghai and Shenzhen and Hong Kong through pass directly through the mechanism of the Shanghai and Shenzhen-Hong Kong Hong Kong Stock Exchange (the Shanghai and Shenzhen-Hong Kong):
- Foreign investors can buy Shanghai Stock Exchange and Shenzhen Stock Exchange qualified stock directly through the Hong Kong Stock Exchange.
- Domestic investors through the Shanghai Stock Exchange, the Shenzhen Stock Exchange buy Hong Kong-listed shares in Hong Kong in the south.
North of funds means the Hong Kong capital and international capital to enter the mainland through land shares through the A-share market. Domestic north-south dividing line in Hong Kong, Hong Kong on behalf of the South, the North represents the mainland stock market , and thus capital inflows from Hong Kong to the mainland stock market is known as the north capital inflows Hong Kong from the mainland stock market is called south funds.
By the Shanghai and Shenzhen-Hong Kong trade benefits
Because bought by the Shanghai and Shenzhen-Hong Kong
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It does not require approval
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There is no limit on the amount
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Information disclosure, what stocks to buy, how much money to buy, there is public data
So now determine foreign participation in China's capital market, the most important indicator is the observed northward flow of funds.
The rise north and south funds of funds derived from the interconnection mechanism, the Mainland and Hong Kong-listed shares by other investors in the Stock Exchange of Hong Kong and Shanghai Tong, Hong Kong and Shenzhen through the sale of the specified range.
North of funds, also known as hot money, smart money, during the appreciation of the renminbi, there will be a lot of money into the north mainland stock market, the mainland stock purchase, stock and then sell the mainland into Hong Kong dollars flow out, to win benefits of RMB appreciation. When a large amount of foreign capital flowing out devaluation is the same reason.
About Shanghai and Shenzhen-Hong Kong stocks
To Shanghai and Hong Kong stocks through an example:
Reference: http://edu.sse.com.cn/col/shhkconnect/intro/intro/
for the Mainland and Hong Kong to promote the common development of the capital market, China Securities Regulatory Commission, the Hong Kong Securities and Futures Commission released on April 10, 2014 joint announcement, decided to approve in principle the Shanghai stock Exchange (the Shanghai stock Exchange), the stock Exchange of Hong Kong limited (SEHK), China Securities Depository and clearing Corporation limited, Hong Kong central clearing Limited stock market trading pilot interoperability mechanisms Shanghai and Hong Kong (Hong Kong and Shanghai short pass).
Hong Kong and Shanghai through the establishment of the Shanghai Stock Exchange and the Stock Exchange technology to connect the mainland and Hong Kong investors can buy and sell each other within the provisions of the Stock Exchange-listed shares through a local securities firm or broker. Shanghai and Hong Kong through Hong Kong stocks including Shanghai stock through and through in two parts.
Shanghai shares through means Hong Kong investors commissioned the Hong Kong brokerage, securities trading services via a company set up by the Stock Exchange, to declare to the Shanghai Stock Exchange, the Shanghai Stock Exchange trading within the provisions of the listed shares.
The initial pilot, Shanghai shares through stock range includes the SSE 180 Index and SSE 380 Index constituent stocks listed on the Shanghai Stock Exchange and A + H shares of company stock. However, the implementation of the Shanghai Stock Exchange warning of the risk of the stock (ie ST, * ST shares) not included in the Shanghai stock through stock; stock-quote currencies other than the renminbi (B-share) is not included in shares on the Shanghai stock. As of April 10, 2014, Shanghai shares through a total of 568 stocks.
Shenzhen and Hong Kong stocks through is the same reason.
Day fund balance
In the stock market, through the balance it refers HGM HGM through day remaining amount. Shanghai and Hong Kong on the amount of shares on the Shanghai and Hong Kong stocks divided on Shanghai shares through daily quota of 52 billion yuan, Hong Kong stocks through the daily limit in Shanghai and Hong Kong through to 42 billion yuan.
Investors can analyze the pros and cons of the market depending on the circumstances by Shanghai and Hong Kong through daily quota remaining needs. For example: in Shanghai less Shanghai and Hong Kong through the remaining shares through a daily amount, and less on the same day Shanghai stock buying, selling more, it means there are more Shanghai stock through the outflow of funds, the A-share market funds will face greater pressure. Conversely, fewer Hong Kong and Shanghai in Shanghai through the remaining shares through a daily limit, while Shanghai shares on the same day more buying, selling less, it means that through shares in Shanghai have more capital inflows, the A-share market will there are promoting. And if shares through the Shanghai Daily remaining amount is more, it means the Hong Kong market funds less the A-share market trading volume, it is possible to make the lower A-share market activity. Similarly in HGM HK pass through.
reference
https://www.csai.cn/v/11109.html
Updated: 2020-3-27
