Northbound funds have always attracted the attention of investors due to their transparent flow and timely disclosure. So why did northbound funds buy in large quantities? Which stocks are easy to favor? Hong Kong United Securities has also prepared relevant content for your reference.
Why are northbound funds buying in large quantities?
1. China's economic growth is expected to be better. This provides relatively reliable fundamental support for northbound funds, especially when economic activities gradually stabilize, and the market has high expectations for China's economic growth. Northbound funds are optimistic about the long-term development potential of the Chinese economy, so they choose to buy in large quantities.
2. The A-share market has a valuation advantage. Compared with overseas markets, especially the U.S. stock market, the valuation of the A-share market is relatively low, and it has high investment value and attractiveness. The price-earnings ratio of the A-share market is at a relatively low level among global stock markets. Against the background of better global liquidity and rising inflation, foreign capital seeks investment opportunities with higher yields, and the A-share market is one of their choices.
Which stocks are easy to favor?
1. Stocks in the technology sector. In recent years, the technology industry has achieved rapid development in China, and many innovative high-tech companies have become popular choices for investors. These companies have broad room for development, and their stocks are easily favored by northbound funds.
2. Stocks in the consumer industry. China's huge population base and growing consumer demand have brought huge growth potential to stocks in the consumer industry. Those companies that enjoy high brand awareness and market share in the market are the focus of northbound funds.
3. Northbound funds like to focus on popular stocks and sectors with thematic opportunities . These themes or sectors are supported by policies or driven by market demand, and have great development space and value-added potential.
It should be noted that the buying behavior of northbound funds is affected by various factors, such as the macroeconomic environment, policy changes, industry trends, etc. When investors pay attention to the buying trend of northbound funds, they should comprehensively consider these factors and make decisions based on their own risk tolerance and investment goals.