basic concepts
"North" refers to the Shanghai and Shenzhen stock, "South" refers to the means the Hong Kong stock.
North of funds refers to the inflow of funds into Hong Kong from mainland stock market stocks,
While the mainland stock market also inflow of funds into Hong Kong, and this fund is called south funds.
North of funds has been the reputation of the market as the "smart money" ,
Many investors want to know the flow of capital to the north, that their trading decisions provide a reference.
The impact on the A shares
In the A-share market, foreign capital is not allowed to be directly involved,
The market is regulated capital market can not achieve free circulation.
China's Hong Kong stock market is an international financial center, many foreign funds can invest in Hong Kong stocks,
In China, respectively in 2014 and 2016, the opening of the
Hong Kong and Shanghai through
and
Shenzhen and Hong Kong through
the opening of the A-share market in Hong Kong stock market and mutual fund flows,
In the actual trend, the capital of the north face appear crazy sweep goods when, A-share market volatility usually occurs, and the amplitude of the day is relatively large, and the trend appears Dikaigaozou,
This is usually bargain-hunting opportunities Bo north of funds for the rebound.
However, China's stock market investors is the overall retail-led, can really affect the stock market run trend of retail or investment behavior,
These funds are not able to go north a real impact on the A-share market, the market will only lead to instability in the transaction.