1. Hello brothers and sisters, there is a sudden news over the weekend! There is a big adjustment in northbound funds! [Hong Kong Stock Exchange: The adjustment of the real-time turnover and daily quota balance of northbound trading will be officially implemented on May 13], we have to officially say goodbye to foreign investors, The market will open next Monday, and it is estimated that you will not see the real-time data. What happened and what will be the impact on A-shares? Dalong will tell you right away!
2. Let's take a look at the news: The Hong Kong Stock Exchange announced on Saturday that following the successful completion of the pre-launch test today, the adjustment of the real-time turnover and daily quota balance of northbound trading will be officially implemented on May 13 (Monday).
You should remember that on April 12, the Shanghai-Shenzhen-Hong Kong Stock Exchange announced that it would adjust the information disclosure mechanism of Shanghai-Shenzhen-Hong Kong Stock Connect transactions at the same time, indicating that it would no longer disclose the real-time buy transaction amount, sell transaction amount and total transaction amount of Shanghai and Shenzhen Stock Connect; When the quota balance of SSE Stock Connect is greater than or equal to 30% on the day, "sufficient quota" will be displayed; When it is less than 30%, the balance of the quota will be announced in real time, and the simple point is that the data of foreign capital can only be seen after the close of the market from next week, and the real-time data can not be seen in the intraday.
Real-time data of Northbound trading is no longer fully disclosed
According to the latest announcement of the Hong Kong Stock Exchange, starting from 13 May, the disclosure of real-time trading volume and daily quota balance of Northbound trading will have the following significant changes:
1. When the daily quota balance is greater than or equal to 30%, the real-time balance will no longer be displayed on the exchange website, and the specific data will only be displayed when the balance is less than 30%.
2. When the daily quota is exhausted, the Exchange will issue a trading suspension message on its website for all relevant SSE and SZSE Securities. When the balance of the quota is not less than 5%, the transaction can be resumed and the balance information can be disclosed.
This means that during the vast majority of trading sessions, investors will not be able to know the real-time movement of northbound funds. This will undoubtedly be a big challenge for investors who are accustomed to grasping the direction of northbound capital flow through the changes in the quota of Hong Kong Stock Connect.
After-hours data disclosure arrangements will also be adjusted
In addition to the changes to real-time data disclosure, HKEX also announced that it will make adjustments to the after-hours disclosure arrangements for Stock Connect and Southbound Stock Connect, which cover the following key points:
1. The websites of SSE and SZSE will disclose for the first time after each trading day the shareholding and market capitalization of SSE and SZSE on the previous trading day.
2. HKEX will adjust the existing daily after-market disclosure arrangement to disclose the data of Southbound holdings and market capitalisation of shares held in Southbound Stock Connect for the first time after each trading day.
3. In addition, HKEX will also publish the total number of stocks held by Stock Connect investors at the end of the previous quarter on a quarterly basis, so that investors can have a more comprehensive understanding of the position of Northbound funds.
Today's latest news is to confirm that this measure will be officially implemented from next Monday (May 13), which is another big feat after the cancellation of fund valuation, and it is really convincing.
3. Why do you want to cancel the intraday real-time trading amount of foreign capital (northbound funds)?
According to the relevant person in charge of the Shanghai and Shenzhen stock exchanges, the cancellation of the real-time data release of northbound funds is to ensure the fairness of investors' access to information, and then it is also said that most international stock markets and European and American stock markets do not publish the transaction information of a specific category of investors in real time during the session, nor do they make differentiated arrangements for domestic investors and international investors in the transaction information disclosure mechanism, so the real-time disclosure of northbound funds is cancelled.
However, in Dalong's view, the reason for canceling the real-time data of foreign capital (northbound funds) is that in the past few years, northbound funds have had a very great impact on the market of A-shares. Northbound funds also continue to outflow to drive most of the funds out of the market, because many investors and funds in A-shares like to follow the investment of northbound funds, resulting in the decline of A-shares, so now in order to reduce the situation of retail investors and funds from all walks of life following foreign capital, the real-time data of foreign capital (northbound funds) has been cancelled.
4. Cancel the intraday real-time trading amount of foreign capital (northbound funds)? What is the impact on A-shares?
Da Long first said that the northbound capital is simply the flow of funds into the mainland stock market through the Hong Kong market, they come from overseas, hold a huge amount of funds, and have a decisive impact on the trend of the mainland stock market. In the past days, every action of northbound funds has tugged at the heartstrings of retail investors.
In recent years, a lot of funds have been staring at foreign capital (northbound funds) to buy and sell, northbound funds seem to have become the vane of domestic stock speculation, northbound funds buy, most of the funds of A shares will be bought, northbound funds are sold, most of the funds of A shares will follow, which is why foreign capital only billions can affect the 100 billion A-share market, more to affect market sentiment.
Why do so many people believe in northbound funds, because according to history, the rise and fall of northbound funds on A-shares is almost 99% correct, foreign capital (northbound funds) outflow, A-shares are falling most of the time, and only when foreign capital (northbound funds) continues to flow in, A-shares have more time to rise
Now it is said that it is to reduce the impact on us so shut down, in fact, it is to judge the rise and fall of the stock market effective data to block, before the closure of the fund valuation is also, this dragon is quite speechless, although this news has no impact on the short-term market, but it is more shocking to the confidence of funds, nothing can be seen, nothing is allowed to see, it stands to reason that the development is to be more and more transparent, open and fair, and now it is closed not to look on, which is very hard to hit the confidence of the stock market.
Although it can reduce the volatility of foreign capital on A-share funds, it has also greatly damaged the confidence of stock market investors.
The code word is not easy, hard work to give Dalong homeopathic praise and support, with everyone's encouragement and support, Dalong has the motivation to insist on sharing one by one, I wish everyone to eat meat every day!