The net purchase of northbound funds rose to 90 billion yuan this month, which has exceeded the total amount of last year

Since the opening of the A-share market this year, northbound funds have started to sweep goods, and they have been in a state of net inflow for 10 consecutive trading days.

Before January, the accumulated net inflow of northbound funds exceeded the whole of last year. On the one hand, last year’s northbound net inflow hit a new low. Compared with last year’s data, the current performance is naturally very impressive. On the other hand, the main crisis in the investment market has been lifted: China has relaxed the supervision of the strong epidemic that has lasted for 3 years, and the Fed’s interest rate hike is also coming to an end.

However, compared with the positive inflow of northbound capital this month, domestic funds are more conservative, which can be seen from the recent performance of the broader market. The overall preference for northbound is towards stable leading companies. Although stocks represented by liquor and banks have performed well in recent days, the overall performance of small and medium-cap stocks has been lacklustre. And in the past two days, some capital has obviously been cutting foreign leeks. For example, as a stock favored by foreign investors, Moutai’s stock price has not risen but fallen in the past two days. In summary, it is still difficult to judge whether foreign capital can drive the overall A-share market to actively buy and form a bull market.