New data from cmsmc.com indicates the inflow of foreign capital into the Chinese A-share market has been accelerating, The Paper reported.
Over the first seven months of the year, foreign investors recorded a total net purchase of A shares worth 169.16 billion yuan (US$24.64 billion) via the Shanghai-Hong Kong Stock Connect, Shenzhen-Hong Kong Stock Connect, Qualified Foreign Institutional Investor System and RMB Qualified Foreign Institutional Investor System — significantly higher than that of the same period last year.
With the exception of February, the amount of monthly net purchase of A shares has exceeded 13 billion yuan (US$1.89 billion) during this period.
According to Haitong Securities, as of the end of July, the value of A-share stocks held by foreign investors accounted for 6% of the total value of the A-share market.
Insiders think the attractiveness of the Chinese economy, the opening up of the Chinese capital market as well as the valuation of A-shares are important factors in attracting foreign capital.
At present, A-share stocks’ price-earnings ratio and risk are at a relatively low level. Under this circumstances, it is wise for foreign investors to accelerate their investment in A-shares, said Xia Chun, chief research officer of Noah Holdings.