China and Hong Kong Equities
Greater China Sales Traders
Stock Connect Northbound Trading
- April recorded a net outflow totalling 18.0 Billion RMB (2.67 Billion USD) from Northbound trading, highest single month outflow since the launch of SZ-HK stock connect in Dec 2016)
- Out of 18 trading days in the month, 14 days booked net sell, amounting to 77% of trading days
- For comparison purposes, both Feb and Mar booked net inflow of 60.3B and 4.4B respectively
- Overseas capital inflow will likely slow down in the near term with A-shares equity valuations returning to par from oversold range after a dismal 2018
- MSCI A-share inclusion will kick off their first step in late May. Foreign funding will progressively return to China equities from Q2.