Trading data for Northbound investments (funds flowing to China from Hong Kong) under the seven-month-old Shanghai-Hong Kong Stock Connect showed that investors from the former British colony favoured financial firms, a dairy company, and a car manufacturer, who were among the 10 most actively traded stocks for the period June 1 to 5, according to Red Pulse.
Red Pulse also noted that flows to China have been been negative for most of last week, as investors in Hong Kong have started getting worried about structural issues hounding the A-share market, prompting them to take profit and reduce their holdings.
But Chinese IT company Insigma Technology was the best performer, as it gained 10% each day from June 1, after it announced that it was acquiring stakes in four companies.
Below are the graphs from Red Pulse showing: a) trading volume and outstanding quota for Northbound investment from June 1 to 9; and b) net inflows to China from Hong Kong.
A: Trading Volume and Outstanding Quota for Northbound Investment
B: Net Inflows
Photo credit: Dennis Jarvis via Flickr