What Is The Reason Why Foreign Capital Once Again Accurately Copy A Shares?

Over the past three months or so, we have talked more about the volatility of the A share market. However, when we pay much attention to the volatility of the A share market, every move of foreign investment has gradually attracted our attention.

It is probably not too much to describe the behavior of foreign institutions in recent months with the "accurate copy of the bottom to escape the roof".

However, for foreign institutions, they also have certain advantages. However, this series of advantages has also created positive conditions for its accurate bottom hunting.

Among them, there is a general sense of smell for policy messages, which is the special advantage of foreign institutions. Looking back at previous data, foreign institutions can always make corresponding strategic adjustments with their sensitive smell before the major events in the domestic market or important data are released, in order to adapt to the market environment after the policy is introduced.

At the same time, foreign institutions also have broad mastery. News channel And for the policy oriented A share market, this advantage further strengthens the accuracy of operation of foreign institutions. This is also impossible for other ordinary institutions.

Therefore, after many years of practice, foreign investment institutions have gradually attracted the attention of market investors, and foreign institutions have often become the vane of the market.

Among them, as early as the beginning of June this year, some foreign institutions were singing empty A shares, which included not only Morgan Stanley but also famous institutions such as the Bank of Paris, France. From the perspective of related capital flows, while foreign institutions are singing empty A share market, they are also showing a large flow of capital in the market.

Before the outbreak of the stock market crash in June 15th, funds that track Chinese stocks have basically shown a pattern of accelerated outflow of capital. Subsequently, the A share market has officially entered an irrational drop in the market, during which the largest cumulative decline of the index is more than 40%.

Before July 8th this year, with the squeeze of the A share market bubble, foreign institutions changed their attitude instantly, and actively sang the multi A share market. Among them, from the analysis of the capital flow at that time, after the process of large capital flight in June, the desire of foreign investors to buy Chinese ETF was quite strong in the week before and after July 8th. Sure enough, in the next trading day, the A share market went out of a warm cycle, and the market index once reached the target target set by HSBC at that time.

It took more than 1 months to reach the end of August this year. Foreign institutions But once again optimistic about the investment opportunities in the A share market. In the recent two weeks, the A share market has been favored by many foreign investment institutions.

It is worth mentioning that during this period, some overseas investment institutions such as QFII and RQFII accelerated the pace of investigating A share listed companies. At the same time, in September this year, China's new QFII and RQFII investment quota also achieved the goal of double speed increase. According to statistics, in September this year, the foreign exchange bureaus issued new investment quota of 5 billion 527 million yuan and 6 billion 600 million yuan respectively for qualified foreign institutional investors and RMB qualified foreign institutional investors, representing an increase of 3 billion 175 million yuan and 1 billion 100 million yuan respectively compared with August.

Today, with the end of the National Day holiday, after the holidays A share market The performance has once again confirmed the accuracy of early foreign investment institutions' bottom copy.

In this regard, for foreign institutions once again accurately copy the A share market, in fact, has also received high attention from all sides. However, taking a look at the actions of these foreign investors, there are some commonalities.

Among them, foreign investors like to choose a more aggressive strategy after a significant reduction in market valuations. At the same time, looking at the timing of foreign capital institutions' bottom hunting, they basically choose to return to a relatively reasonable market value before making the corresponding action.