is decided! Starting next Monday, the mainland and Hong Kong can buy ETFs from each other, which will bring a large inflow of funds to A shares and also give mainland investors more investment options.
During this period, the market has been discussing the interconnection between the mainland and Hong Kong stocks , and each other's ETFs on the market. Finally, starting next Monday, investors from both sides can officially buy, and the relevant ETF list has been announced.
For us, are the Hong Kong ETFs in the list now announced worth buying?
This article will analyze several of the ETFs on the list with you.
1
Prior to this, A-shares could buy Hong Kong stocks, and investors in Hong Kong stocks could also buy A-shares. This was the previous interconnection of stocks. Now that it has been further expanded to ETFs, investors are full of expectations for the interconnection of ETFs, especially A-share investors, who hope to attract more foreign investment through the interconnection of ETFs.
's past data also shows that it is indeed possible to attract funds to buy A shares through this channel. Since the opening of Shanghai Stock Connect and Shenzhen Stock Connect, the total inflow of funds has reached 1.6 trillion. After the opening of Hong Kong Stock Connect , the inflow of funds into Hong Kong stocks has also reached 2 trillion.
However, the comparison of this set of data seems to indicate that the enthusiasm of mainland investors to buy Hong Kong stocks is far greater than the enthusiasm of Hong Kong investors and foreign investors to buy A shares.
The two pictures above are northbound funds and southbound funds respectively.
From the situation since this year, we can clearly see that northbound funds show a net inflow on most trading days, but there are also many trading days where there is a net outflow, and the net outflow amount on some trading days is relatively large.
But in comparison, southbound funds are almost always flowing in, which also shows from another perspective that mainland investors are more obsessed with buying Hong Kong stocks.
So although the current discussion in the market is more focused on how much foreign capital will flow in after the interconnection of ETFs, after a period of time, when you look at the market data, you will definitely find that investors are more concerned about how to use this method. Which Hong Kong ETFs to buy?
2
But unfortunately, after the current list was announced, we found that the list of ETFs open to the mainland has reached 83, while the Hong Kong Stock Exchange has opened up the Hong Kong Stock Connect ETFs to allow mainland investment, but there are only 4 ETFs, including Tracker Fund. , Hang Seng Chinese enterprises, Southern Hang Seng Technology, Anshuo Hang Seng Technology.
In other words, if mainland investors want to buy ETFs in Hong Kong in the short term, there are currently only these 4 ETFs that can be purchased through the Hong Kong Stock Connect channel.
This article takes the lead in analyzing two of the ETFs linked to the Hang Seng Technology Index, namely Southern Hang Seng Technology and iShares Hang Seng Technology.
The fund company to which Southern Hang Seng Technology belongs is CSOP Asset Management Co., Ltd. The fund was established in August 2020 and is linked to the Hang Seng Technology Index. Its current scale has exceeded 20 billion yuan. The
fund ushered in a wave of rapid rise from the end of 2020 to the beginning of 2021 not long after its establishment. At its highest, each quote reached HK$10.89. However, it has continued to fall since the Spring Festival last year. As of March 14 this year, the lowest price was only HK$3.42, a drop of nearly 70%.
You may think that this picture is no different from the previous one, but if you look carefully, you will find that there are two colors on this picture. The blue line is the trend of the Hang Seng Technology Index superimposed. In other words, the trend of Southern Hang Seng Technology is completely consistent with the trend of Hang Seng Technology Index, which is also the normal performance of index funds.
3
Another iShares Hang Seng Technology was also established in the second half of 2020 and is also linked to the Hang Seng Technology Index. Its scale is relatively small, currently 11.5 billion, and its fund company is BlackRock.
We superimposed the trend of iShares Hang Seng Technology and the trend of Hang Seng Technology Index and found that the rise and fall of the two are actually consistent.
Seeing this, mainland investors may have felt disappointed, because the two ETFs in the Hong Kong market that can be purchased through Southbound Stock Connect are linked to the Hang Seng Technology Index. Funds linked to the Hang Seng Technology Index already exist in the mainland market.
In the first half of last year, we issued a batch of ETFs linked to the Hang Seng Technology Index at the same time.
We found out the ETF under Huaxia and overlaid it, and found that the trend of Southern Hang Seng Technology in the Hong Kong stock market and the Hang Seng Technology ETF under Huaxia in the mainland market were exactly the same.
From this perspective, there is no need for mainland investors to purchase these two ETFs in the Hong Kong market through the Hong Kong Stock Connect.
Of course, there are four ETFs in the open list this time, and the other two are Tracker Fund and Hang Seng China Enterprises. We will continue to analyze these two funds in future articles to see if they have investment value.
