During a surge in the Chinese stock market, the main funds in Shanghai and Shenzhen showed signs of fleeing, with a net outflow of 169.8 billion yuan on the 8th.
On October 8, A-shares experienced significant volatility, with the Shanghai Composite Index pulling back intraday and rising again in the afternoon.
According to a Weibo post by Sina Finance, since the sharp rise in A-share market at the end of September, over a hundred companies have announced plans to reduce their holdings. Incomplete statistics show that on October 8 alone, more than 30 listed companies announced plans for reduction.
Amidst the sharp rise in A-shares, in addition to shareholders of listed companies choosing to reduce their positions, main funds also showed signs of exiting on a large scale.
Securities Times reported that on the 8th, 404 stocks had a net outflow of main funds exceeding 100 million yuan, with Oriental Fortune, Wuliangye, and Chang’an Automobile ranking top three in terms of net outflow amounts, all exceeding 2 billion yuan; stocks like Vanke A, China Yangtze Power, Kweichow Moutai, and Hikvision also had net outflow amounts of over 1 billion yuan.
Among popular industries, leading liquor companies Wuliangye, Kweichow Moutai, and Luzhou Laojiao were heavily sold off by main funds, with amounts of 2.096 billion yuan, 1.406 billion yuan, and 0.892 billion yuan respectively.
In the automobile sector, main funds were seen flowing out from Chang’an Automobile, Saic Group, and BYD, with outflow amounts of 2.015 billion yuan, 1.103 billion yuan, and 0.862 billion yuan respectively; power sector stalwarts China Yangtze Power and China Nuclear Power also faced outflows from main funds.
According to data by Wind, there was a net outflow of 169.815 billion yuan in main funds from both Shanghai and Shenzhen on the 8th. This included a net outflow of 45.182 billion yuan from the ChiNext Board and 55.736 billion yuan from the Shanghai and Shenzhen 300.
According to Economic Observer, Li Hui, an investment adviser at Western Securities, said that during the upcoming National Day holiday, there has been a constant stream of investors coming to the branch seeking advice on account opening and investments.
Li Hui, who has been working in the securities industry for over 14 years since 2010, also witnessed the bullish market in 2014. He feels that this market compared to the last one is more intense.
On October 8, A-shares opened significantly higher but quickly fell, making many investors cautious.
A post-80s investor stated that he sold off one stock that was high in the morning to ensure a profit. He still has two stocks that are not performing well, but he plans to wait for the market to rise further to break even.
Another seasoned professional investor mentioned that on the morning of the 8th, he also reduced his positions. He believes the market has risen too much in the short term and anticipates a pullback.
There are also investors who revealed that their family invested all of their savings into stocks before the holiday, and on the 8th, the rise and fall resulted in a loss of nearly 30,000 yuan.