blockchaininfinity|谁在扫货港股？这些大钱正持续进场！

The Hong Kong stock market is feeling big money.BlockchaininfinityThe impact!

In the last two trading days, without the support of southward funds, the Hong Kong market still experienced a sharp rise, with trading volume exceeding 1.1 trillion Hong Kong dollars in the two trading days. In this process, in particular, we can see that Tencent, Meituan, Shangtang, Weilai and other industry leaders have performed well.

So, who is sweeping Hong Kong stocks, whether these funds are long-term capital or speculative capital, and why are they coming in at this time? At present, the financial and emotional aspects still seem to be in a more complex state.

Information from the outside shows that at present, large international asset managers are the most active, while emerging market experts and regional managers are still on the sidelines. Some long-term funds continue to buy Chinese stocks. At the same time, the proportion of hedge funds and mutual funds investing in China remains low. Ultra-high net worth clients in Asia have also sold more structured notes than they bought on bargain prices in the past two weeks. In addition, it is also reported that the excellent performance of China's stock market is partly due to the unwinding of the popular "long artificial intelligence, long Japan, short China" strategy.

Who is buying Hong Kong stocks?

The past two weeks have been a period of "long face" in the Hong Kong stock market. The hang Seng index rose more than 13%, making it the world's best-performing major index and has technically entered a bull market. Before that, the Hong Kong stock market lost nearly $3, 000bn due to global investors' concerns about the economic outlook and geographical tensions.

The rise came as a surprise to many people. Of course, the opportunity to make money often lies in this kind of "accident". So who is buying shares in the Hong Kong market?

Information from Goldman Sachs shows that in the past, investors in New York have all talked about Hong Kong. Previously, investors were basically only concerned with investment opportunities in Japan and India in the Asia-Pacific region. this time they are all focused on investment opportunities in mainland China and Hong Kong. The questions include how to configure, the proportion of allocation, the trend of the national team, the economic situation and so on.

International investors are re-studying investment opportunities in the Hong Kong market, and some long-term funds continue to buy shares in Chinese companies. But at the same time, the proportion of hedge funds and mutual funds investing in China is still very low and not optimistic, they will continue to watch the relevant data, and if the market continues to be active, the Hong Kong stock market will regain the attention of these funds.

The proportion of Asian ultra-high net worth customers selling high through structured notes in the past two weeks is still greater than buying at low prices, and customers still hope to take advantage of this wave of opportunities to reduce the proportion and risk of Chinese stocks.

Recently, Hong Kong's currency pegged to the US dollar has proved to be a source of flexibility in the face of a sharp sell-off in Asian currencies. The disorderly fall in the yen has forced some money to move back to undervalued markets such as mainland China and Hong Kong. The periodic excellent performance of China's stock market is partly due to the unwinding of the popular "long artificial intelligence, long Japan, short China" strategy, Bank of America said in a report. In the course of the shift in monetary policy between China and the US, Hong Kong stocks appear to be a low-valued, light and less relevant hedging tool. In addition, we can also observe that against the backdrop of yesterday's surge in Hong Kong stocks, India's Mumbai SENSEX index fell nearly 1 per cent, while the Japanese market rose less than 1 per cent.

From the buying point of view, mainly concentrated in the large-cap index stocks, the largest buyers are AIA, Meituan and Tencent Holdings. Some analysts believe that some fund managers who have previously reduced their holdings may be seeking to cover China and quickly build positions.

Why buy it now?

So why do funds choose to buy Hong Kong stocks now?

The initial cause was in April, when the CSRC issued five measures for co-operation with Hong Kong, including relaxing the scope of ETF products, incorporating REITs, supporting RMB trading counters, optimizing mutual recognition of funds and unblocking listing financing channels. The new rules will help smooth the interconnection mechanism, introduce capital flow into Hong Kong's capital market and enhance liquidity. After that, the Hong Kong market gradually became active.

At the same time, the yen has entered a rapid downward channel. After March, although the Bank of Japan released expectations of an interest rate hike, the yen depreciated further, with the USDJPY falling from a peak of 151.5 to above 160.2 from April 9 to April 29. This has directly led to the recent return of foreign investment to Hong Kong.

The recovery of China's economy and the warming of policies are also an important focus of attracting foreign investment. Manufacturing activity grew at its fastest pace in 14 months in April, according to a private survey released on Tuesday. The Caixin / S & P global manufacturing PMI rose to 51.4 in April from 51.1 in March, the sixth consecutive month of expansion, with improved global demand leading to a steady increase in new export orders. In particular, it is worth mentioning that the continuous improvement of real estate policy is the main reason why foreign investors continue to buy.

In the end, there is attraction. Before the rally, valuations in Hong Kong were among the lowest in the world's major markets, with the Hang Seng index trading at just over eight times, compared with more than 25 times in the US and more than 20 times in Japan. The Hang Seng Index is also less than 20% higher than it was at the time of the handover in 1997. It can be said that the mood has reached an extremely low level. Some brokerage analysts said that Hong Kong stock quality companies, especially Hong Kong stock Internet companies, have lower valuations, lighter assets and faster profit growth, which are not only for domestic investors. it is also a very important source of income for overseas investors.

Of course, the current rally has more technical implications: because Hong Kong stocks are undervalued and cheap, such a surge in the market usually leads to "FOMO". The persistence of the market still needs the cooperation of fundamentals. Only when China's economy continues to improve will international capital reverse its pessimistic expectations and put the market on a benign track.

Editor-in-chief: Yang Yucheng

Proofread: Zhu Tian Ting

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This article was first posted on the official account of Wechat: brokerage China. The content of the article belongs to the author's personal point of view and does not represent the position of Hexun. Investors operate accordingly, at their own risk.