A-share “magnet” effect attracts foreign accelerated delivery
The “magnet” effect of A shares has attracted a large number of accelerated inflows into the market. The International Finance Association (IIF) released a report saying that the availability of international capital flowing into China this year is about 575 billion US dollars, and China will continue to be a key driver of capital inflows into emerging markets.
The report also predicts that China’s stock market net inflows this year and next will reach 105 billion US dollars and 111 billion US dollars respectively.
The author believes that China’s capital market is gradually becoming the preferred place for global capital allocation. It is a general trend that stems from three major attractions: a stable and progressive economy, an accelerated opening of the capital market, and undervalued corporate value.
The Chinese economy has entered a new stage of “heavy quality” while maintaining overall stable and steady development.
The overall macroeconomic data released from January to February 2019 can show a good start to the economic structure. The “stable” economic operation is mainly reflected in the following aspects: Looking at investment, there are many fixed asset investments from January to February.Increase by 6.
1%, the growth rate accelerated by 0 over the previous year.
The two averages have shown a substantial pick-up since September last year. Looking at consumption, the total retail sales of consumer goods increased from January to February.
The growth rate is 2%, which is the same as that of December last year. Looking at the leading indicators, the total investment growth rate of newly started projects from January to February is 4%.
9%, an increase of 22 over the same period last year.
This can be polished, the economic structure continues to be optimized, the high-end development of the manufacturing industry has maintained a strong momentum, and the production efficiency has maintained an upward trend.
Positive changes in the economic structure are expected to boost growth momentum.
In addition, further tax and fee reduction policies can be implemented, and infrastructure investment will accelerate with the support of more local special debt.
At the same time, external expectations are expected to improve to some extent.
The state continues to increase policy support in promoting investment to make up for shortcomings, optimize the business environment, and promote opening to the outside world.
Although the economic growth rate has entered a shift period, the “heavy quality” of the Chinese economy has entered a new stage of rapid development.
The author believes that the stable development of China’s economy is the cornerstone of the prosperity of the capital market.
The steady improvement of the “quality enhancement” of the economy fundamentally supports the long-term prosperity of the capital market. The steady and progressive economic development situation is also an important factor in attracting alternative inflows.
The acceleration of China’s capital market opening to the outside world and diversified cross-border investment channels have brought rare opportunities to foreign countries.
In the past two 淡水桑拿网 years, the pace of China’s capital market opening up has accelerated markedly, and a trend of accelerated foreign inflows into A-shares has taken shape.
Data show that since this year, the net inflow of funds to the north has reached 1,270.
50ppm, became an important source of incremental funds for A shares.
As of February 27 this year, QFII and RQFII approval quotas reached 1014, respectively.
$ 4.6 billion and 6604.
7.2 billion yuan.
In addition, international index companies have successively split olive branches towards A-shares, helping overseas institutions and funds to deploy A-shares.
Currently, the world’s three largest stock index companies including MSCI, FTSE Russell and S & P Dow Jones have announced or started to replace their A shares with their systems.
On March 1, MSCI announced that it will 北京夜生活网 increase the Chinese market A-share segmentation factor from 5% to 20% in three steps in 2019, and will include the mid-cap A-shares division index system within GEM stocks.
FTSE Russell and S & P Dow Jones Indices will also start the process of replacing A shares in June and September, respectively.
Therefore, the author believes that this year’s accelerated foreign transfer has both the passive allocation needs of A-shares “entry into Morocco” and “entry into wealth”, as well as the active demand for rare possibilities brought by the expansion of China’s capital market.
In addition, many high-quality A-share companies are still undervalued, and the underestimation of A-shares is also an attractive magnet.
Last year, the A-shares were estimated to have fallen to historical lows, and the stock index has risen to a certain level since the beginning of the year. However, the forecast of blue-chip stocks is still low, and the global market is in a “depression” where the long-term investment value appears.
Therefore, A shares are estimated to be attractive to institutional investors and long-term value investors.
Therefore, while optimistic about China’s economic prospects, it is logical for overseas funds to choose the currently undervalued A shares for investment.
The “magnet” effect of A shares is gradually exerting its power.