Overseas investors contribute record high capital flows into A-share market through Stock Connect in Jan.

Updated: February 6, 2023 Source: Belt and Road Portal
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Photo taken on Dec. 5, 2016 shows the interior of Shenzhen Stock Exchange after the launching of the Shenzhen-Hong Kong Stock Connect in Shenzhen, south China's Guangdong Province.

Northbound investors, referring to investors entering China's A-share market through the Chinese mainland-Hong Kong Stock Connect programs, contributed an all-time high 141.3 billion yuan of net monthly capital inflows into A-share market in January, reported Securities Times on Friday.

Their hefty January net purchases, also marking the first month of over 100 billion yuan capital inflows into A-share market since 2014 when Stock Connect was launched, resulted from their optimism towards China's economy and Renminbi-denominated assets.

Since the end of 2022, multiple leading foreign financial institutions generally raised their forecasts for China's gross domestic product (GDP) in 2023 and the upward adjustment of Renminbi-denominated assets.

What's more, overseas institutional investors posted more and more optimistic prospects in their recent surveys and research reports about A-share market apart from their material buying.

By February 1, overseas institutions conducted as many as 424 times of surveys over A-share market listed companies this year, showed statistics with Wind, a financial data provider in China. 

Editor: Yang Yifan