China's Shanghai and Shenzhen stock markets are expected to see a net capital inflow of 3.3 trillion yuan in 2016, more moderate as compared with some 4.4 trillion yuan inflow seen in 2015, said Haitong Securities.
The broker forecast that approximately 5.5 trillion yuan of fresh capital may enter domestic stock market in 2016, including two trillion yuan from banks' wealth management and private banking accounts, 630 billion yuan from social security and pension funds, 2.7 trillion yuan from bank deposits and 170 billion yuan from overseas markets.
Meanwhile, the aggregate fresh market demand for capital is estimated at 2.2 trillion yuan, including 400 billion yuan for IPOs, one trillion yuan for listed firms' refinancing activities, 320 billion yuan for trading fees and 600 billion yuan for net share selling by major industrial funds.
As the capital supply is higher than the demand at present, the domestic stock market is expected to keep bullish momentum, said the broker.
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