Comprehensive news, the Hong Kong stock market has recently seen a surge of southbound funds. Some analysis points out that this is because Chinese investors are worried about the emergence of a bubble in the mainland stock market, and began to turn to the Hong Kong stock market resulting in the phenomenon.
According to Reuters, investment sources analyzed that mainland blue-chip stocks have been in a relatively large bubble lately, with many stocks in sectors such as consumer, pharmaceutical and liquor valuations having exceeded historical high valuations and potentially having huge risks. This has forced some investors to switch to shares of Hong Kong-listed Chinese companies, especially those that have been forced out of the U.S. exchanges. Industry insiders believe the U.S. ban tells people what’s good for them.
As of last Thursday, the amount of money moving south to the Hong Kong stock market since January has exceeded $220 billion.
Morgan Stanley, a leading international investment bank, attributed the influx of capital to China’s policy of encouraging outbound investment and the existence of a high premium for A shares versus H shares.
On the other hand, professional analysis points out that the big rise in the market value of Chinese A-shares is also driven by foreign investment, and UBS estimates that the inflow into the A-share market will be as high as RMB 200 billion in 2021.
Recent Comments