In recent days, the overall trend of capital inflows into the Chinese stock market has been mostly outflowing. The net selling amount reached 28.8 billion yuan (RMB) within this month, compared to 44.4 billion yuan net outflow last month.
On July 25th, the three major A-share indices collectively fell, with the Shanghai Composite breaking below the psychological threshold of 2900 points. On the 26th, the northbound funds once again reduced their holdings of A-shares.
According to reports from “Yicai” and the Caijing Society, as of the closing on the 26th, northbound funds net sold 349 million yuan throughout the day, with the Shanghai-Hong Kong Stock Connect net selling 443 million yuan and the Shenzhen-Hong Kong Stock Connect net buying 95 million yuan.
The top three stocks with the highest net selling amounts are Kweichow Moutai, Northern Huacai, and Ningde Times, with net selling amounts of 530 million yuan, 258 million yuan, and 213 million yuan respectively.
By industry (SWS level one), based on data from the past two weeks (July 15th to 25th), home appliances, electronics, non-ferrous metals, and food and beverage sectors have been significantly reduced by northbound funds, with their shareholding values decreasing by over 10 billion yuan. At the same time, the telecommunications, machinery equipment, automotive, basic chemicals, and banking sectors have also seen a significant decline in their shareholding values over the past two weeks.
Looking at specific individual stocks, as of July 25th, a total of 23 stocks have seen their shareholding values decrease by over 1 billion yuan in the past two weeks, with companies like Midea Group, Kweichow Moutai, Zhongjin Xu Chuang, Zijin Mining, and Industrial Fulian being sold off by 9.18 billion yuan, 5.86 billion yuan, 4.59 billion yuan, 3.59 billion yuan, and 3.10 billion yuan respectively.
It is worth noting that some individual stocks have recently experienced a “clearance-style” reduction in holdings by northbound funds.
Since the beginning of this month, the outflow trend of northbound funds has continued, with a total reduction of 287.8 billion yuan as of the closing on July 26th. Excluding the remaining 3 trading days next week (end of the month), the net selling amount of northbound funds this month is the second highest of the year, only lower than June’s 44.44 billion yuan. Currently, market trading data remains light, and major indices have seen more declines than rises this month. Investors are also keeping an eye on how the August market will develop.