Financial News
Written by: Zhang Weilun
2021-01-26 22:15
The last update date: 2021-01-26 22:15
HSBC's latest research report pointed out that the mainland fund market is booming and investors have poured into Hong Kong to look for bargains. It is also expected that this year's southward funds will reach a record-breaking 800 billion yuan (the same below).
Liu Bo, A-share strategist at HSBC Qianhai Securities, pointed out in the report that the total issuance of mutual funds in the Mainland last year was 3 trillion yuan. This trend is expected to continue this year. The number of funds issued in the first quarter reached 139 and 700 billion yuan was raised. About half of the funds will flow into the Hong Kong stock market.
At the same time, it is expected that the annual southward funds will reach 800 billion yuan, an increase of 32% year-on-year.
The bank believes that this round of southward funding will be more sustainable, as investors allocate more funds for retirement in response to an aging population, and also take into account the low exposure to overseas markets.
The bank also pointed out that scarcity and value are the preferred investment targets for mainland investors, including Internet and innovative drug companies that are in short supply in the A-share market, as well as Hong Kong stocks whose valuations are lagging behind A-shares, especially due to the haze of US government sanctions. And the stocks that were sold.
Southbound trading