The China stock market has been moving up and down around 3,300 points. The bull/bear divergence is widening. Yet foreign investment banks, including Morgan Stanley and Goldman Sachs, expressed bullish view on the A-share market. Signs show that foreign investors are doing bottom fishing in the A-share market. According to statistics of the market research center of the Securities Daily, from July 1 to August 7, a total of 34.988 billion yuan has flown into the mainland market via Shanghai-Hong Kong Stock Connect and Shenzhen-Hong Kong Stock Connect. Meanwhile, 59 A-share listed companies were surveyed by foreign institutions. In addition, among those listed companies in the Shanghai and Shenzhen markets that have released their mid-year report, 23 saw QFII (Qualified Foreign Institutional Investors) in their top ten shareholders list.
Northbound trading saw a net inflow of around 35 billion yuan
According to statistics from Hithink RoyalFlush Information Network, a financial information provider, from July 1 to August 7, 14.633 billion yuan has flown into the mainland market via Shanghai-Hong Kong Stock Connect, while 20.355 billion yuan flown via Shenzhen--Hong Kong Stock Connect. In aggregate, the Northbound Trading saw a net inflow of 34.988 billion yuan.
Specifically, as of yesterday, the Northbound Trading in Shanghai-Hong Kong Stock Connect saw net inflow for 12 consecutive trading days; while that in Shenzhen-Hong Kong Stock Connect saw net inflow for 22 consecutive trading days. As foreign investment banks expressed bullish views on the A-share market, capital swarms into the Northbound Trading. An industry insider said that as the China stock market opens wider and the investment environment continues to optimize, the A-share market will attract more foreign capital.
According to data of the top ten active stocks in the Northbound Trading in Shanghai-Hong Kong Stock Connect and Shenzhen-Hong Kong Stock Connect, from July 1 to August 7, 72 stocks in both Shanghai and Shenzhen bourses made on the top ten active stocks list in the Northbound Trading in Shanghai-Hong Kong Stock Connect and the Shenzhen-Hong Kong Stock. Ping An Insurance (Group) Company of China, Ltd. (601318.SH), Wuliangye Yibin Co., Ltd. (000858.SZ), Midea Group Co., Ltd. (000333.SZ), Hangzhou Hikvision Digital Technology Co., Ltd. (002415.SZ), Gree Electric Appliances, Inc. of Zhuhai (00651.SZ), Kweichow Moutai Co., Ltd. (600519.SH), China Merchants Bank Co., Ltd. (600036.SH), Zhejiang Dahua Technology Co., Ltd. (002236.SZ) made on the list for an average of or over 20 times. These stocks have been relatively active in the Northbound Trading.
Among the 72 active-traded stocks in the Northbound Trading, 52 saw net buying in the period. Gree Electric Appliances, Midea Group, Hikvision Digital Technology, Kweichow Moutai, Ping An Insurance (Group) respectively saw a net buying of 3.509 billion yuan, 2.933 billion yuan, 2.249 billion yuan, 1.525 billion yuan, 1.483 billion yuan in the Northbound Trading in the period.
Foreign institutions surveyed 59 companies
According to statistics from Hithink RoyalFlush Information Network, from July 1 to August 7, a total of 59 listed companies were surveyed by foreign institutions.
Specifically, Hikvision Digital Technology, Han's Laser Technology Industry Group Co., Ltd. (002008.SZ) and Universal Scientific Industrial（Shanghai）Co., Ltd. (601231.SH) were surveyed by 75, 27 and 10 foreign institutions. And Vatti Corporation Limited (002035.SZ), Tianma Microelectronics Co., Ltd. (000050.SZ), BYD Company Limited (002594.SZ), Inner Mongolia Yili Industrial Group Co., Ltd. (600887.SH) and BOE Technology Group Co., Ltd. (000725.SZ) were surveyed by four or more foreign institutions. In addition, GF Securities Company Limited (000776.SZ), Yifan Pharmaceutical Co., Ltd. (002019.SZ), Shenzhen Capchem Technology Co., Ltd. (300037.SZ), Meinian Onehealth Healthcare Holdings Co., Ltd. (002044.SZ), Beijing Yanjing Brewery Co., Ltd. (000729.SZ), Shanxi Meijin Energy Co., Ltd. (000723.SZ) and Angang Steel Company Limited (000898.SZ) were surveyed by three foreign institutions.
Among those listed companies surveyed by foreign institutions, some companies saw QFIIs in their top ten shareholders list. Foreign institutions continue to be bullish on those stocks, which may make them attract attention from other investors.
The most typical case is Hikvision Digital Technology. As of now, QFII held the most shares in Hikvision Digital Technology among listed companies that have disclosed mid-year report. Since the beginning of July, the number of foreign institutions that surveyed Hikvision Digital Technology also ranked top at 75. The company reported steady growth in its mid-year report. Intelligentized business and its expansion in overseas market have become major reasons for the bullish view from both foreign institutions as well as domestic institutions. AVIC Securities said that Hikvision Digital Technology has made active investment in the research and development of artificial intelligence to solidify its leading position in security protection. The company really has the foresight in the investment in innovative business and overseas business. AVIC Securities expects that the two businesses will contribute a lot to the company’s earnings, and remain its rating of “buying” unchanged.
QFIIs open or build up positions in 17 stocks
According to statistics from Hithink RoyalFlush Information Network, a financial information provider, as of August 7, among those listed companies in the Shanghai and Shenzhen markets that have released their mid-year report, 23 saw QFIIs in their top ten shareholders list. 17 companies saw QFIIs open or build up positions in their stocks.
Specifically, QFIIs first bought shares of Sinosteel Engineering & Technology Co., Ltd. (000928.SZ) and Shanghai Weihong Electronic Technology Co., Ltd. (300508.SZ). QFIIs increased over 10 million shareholdings in Wanhua Chemical Group Co., Ltd. (600309.SH), Venustech Group Inc. (002439.SZ), Fiberhome Telecommunication Technologies Co., Ltd. (600498.SH) and over 1 million shareholdings in Jiangsu Nhwa Pharmaceutical Co., Ltd. (002262.SZ), Sichuan Swellfun Co., Ltd. (600779.SH), Hangzhou Robam Appliances Co., Ltd. (002508.SZ), Zhejiang Weixing New Building Materials Co., Ltd. (002372.SZ), Shandong Haihua Co., Ltd. (000822.SZ), By-health Co., Ltd. (300146.SZ), Shandong Shanda Wit Science and Technology Co., Ltd. (000915.SZ), Angel Yeast Co., Ltd. (600298.SH). QFIIs also increased shareholdings in Tibet Summit Resources Co., Ltd. (600338.SH), Nanjing Yunhai Special Metals Co., Ltd. (002182.SZ), Nanjing Chemical Fibre Co., Ltd. (600889.SH) and Zhejiang Huace Film & TV Co., Ltd. (300133.SZ)
It is noteworthy that entering August, stocks that are heavily held by QFIIs have shown mixed performance. Only 8 stocks added in August, led by Nhwa Pharmaceutical with an increase of 6.12 percent, followed by Shenzhen Das Intellitech Co., Ltd. (002421.SZ) with an increase of 3.96 percent. Fiberhome Telecommunication Technologies and Venustech Group recorded a growth of 2.65 percent and 2.33 percent respectively. Meanwhile, Swellfun, Huace Film & TV and Kweichow Moutai also advanced in the month.
Translated by Coral Zhong
Latest comments