Capitals’ preference on choosing A shares is always attracting much attention since the introduction of Shanghai-Hong Kong Stock Connect and Shenzhen-Hong Kong Stock Connect. So what’s the result since the beginning of this year? The reporter of Shanghai Securities News (SSN) found that the top ten stocks with active trading favored by capitals will rise by as high as 49 percent within a year on average. If regarding them as an investment portfolio, investors can gain remarkable earnings since building positions at the beginning of this year till now.
Prices of 10 stocks with active trading see remarkable rise
According to SSN’s statistics, five stocks from northbound trading under Shanghai-Hong Kong Stock Connect and another five from northbound trading under Shenzhen-Hong Kong Stock Connect are the top ten stocks with active trading since early this year. These ten stocks include Hangzhou Hikvision Digital Technology Co., Ltd., Midea Group Co., Ltd., Gree Electric Appliances, Inc. of Zhuhai, Founder Securities Co., Ltd., Ping An Insurance (Group) Company Of China, Ltd., Inner Mongolia Yili Industrial Group Co., Ltd., Yunnan Baiyao Group Co., Ltd., Jiangsu Hengrui Medicine Co., Ltd., China Yangtze Power Co., Ltd., and Wuliangye Yibin Co., Ltd.
Statistics showed that during the same effective trading period, Hangzhou Hikvision Digital Technology was on the list for 169 times, Midea and Ping An Insurance for 168 times, Gree Electric Appliances and Wuliangye Yibin for 161 and 162 times respectively, and Jiangsu Hengrui Medicine, Inner Mongolia Yili Industrial Group and Yunnan Baiyao for over 50 times.
During the trading days, Hangzhou Hikvision Digital Technology gained net purchase worth 20.482 billion yuan, Midea and Ping An Insurance gained net purchase worth 18.766 billion yuan and 7.731 billion yuan respectively.
These ten stocks also saw brilliant growth. Hangzhou Hikvision Digital Technology witnessed the highest growth with 105 percent, Wuliangye Yibin rose by 67 percent, Midea, Gree Electric Appliances, Ping An Insurance and Jiangsu Hengrui Medicine hiked by over 50 percent during the period. On the whole, they have hiked by 49 percent on average since the beginning of this year.
Overseas capitals still buy some individual stocks
In view of single quarter, the above-mentioned ten stocks moved up by about 16 percent on average in the first quarter of this year and went up by 26.19 percent in the second quarter.
Founder Securities suffered the biggest decline with nearly 11 percent since July, and Yunnan Baiyao dived by about 7 percent. Hangzhou Hikvision Digital Technology, Midea and Gree Electric Appliances dropped by 0.65 percent, 2.42 percent and 5.14 percent respectively. However, Ping An Insurance, Inner Mongolia Yili Industrial Group and Jiangsu Hengrui Medicine rallied by 9.91 percent, 12.83 percent and 16.17 percent respectively.
Regarding proportion of shareholdings, except Founder Securities, shareholdings of overseas capitals in other stocks kept growing since the first quarter. Overseas capitals continued to buy the stocks and stock prices kept increasing, resulting in increasing market value of the above individual stocks held by the capitals.
As of September 19, capitals held 9.48 percent shareholdings in Hangzhou Hikvision Digital Technology, whose market value rose by 4 times to 28.1 billion yuan when compared with that in the first quarter. Capitals held 8.47 percent shareholdings in Midea, whose market value surged significantly. Market value of capitals’ shareholdings in Gree Electric Appliances, Inner Mongolia Yili Industrial Group, Yunnan Baiyao, Jiangsu Hengrui Medicine and Ping An Insurance hiked by about 100 percent since the first quarter.
However, as for the market value of stocks held by overseas capitals, that of Kweichow Moutai Co., Ltd. ranked NO.1. By September 19, overseas capitals held 6.35 percent equity of the stocks with market value worth 39.3 billion yuan, up by 45.98 percent from the end of the first quarter.
Market participants analyzed that overseas investors attach more importance to the continuity of company’s profitability and stable dividends. On the whole, they focus more on those companies with lower evaluation, better fundamentals and unique advantages.
In the opinion of Hong Hao, managing director and chief strategist of blue chips in the A-share market, like liquor and spirits sector, and individual stocks with consumption upgrading concept are more favored by overseas capitals.
Translated by Vanessa Chen
Latest comments