Chapter 134 Northbound Funds

As soon as Zuo Yuliang saw the four words of northbound funds, a sentence immediately appeared in his mind: The sub-line is a mountain wolf, and the ambition is rampant. Are these funds the Zhongshan wolves that Zuo Yuliang feels? This has aroused Zuo Yuliang's great interest in research.

There is no good or bad money, but it depends on whose hands it is manipulated, Zuo Yuliang always believes that this is a wise saying. Therefore, for the northbound funds, Zuo Yuliang searched all the information that could be found at hand, and worked hard to enhance the knowledge and understanding of this fund, and achieved the goal of knowing the other.

According to the information collected by Zuo Yuliang, Zuo Yuliang believes that a more reasonable explanation is this: Northbound capital generally refers to a large number of first-class stock market funds and international capital that have entered China's mainland stock market. Since the implementation of the stock market interconnection mechanism of Shanghai-Hong Kong Stock Connect and Shenzhen-Hong Kong Stock Connect, China's financial academic circles have taken ** as the boundary, using the south to refer to Hong Kong stocks, and the north to refer to the stock market in Chinese mainland. Therefore, the funds flowing into Hong Kong stocks from the mainland are called southbound funds, and the funds flowing into the mainland stock market from Hong Kong stocks are collectively referred to as northbound funds.

In Zuo Yuliang's view, all funds that enter the stock market from the financial system are made to make profits as the first priority. The entry of northbound funds into the mainland market is nothing more than this purpose. They also entered the market to buy stocks in order to make huge profits from the prosperity and development of China's stock market. From the perspective of the long-term development of the stock market, as long as it does not violate the domestic stock market management regulations, we are theoretically welcome. In particular, the introduction of foreign capital can also receive the effect of living water at the source. Isn't there a saying that "asking where the canal is as clear as it is, only the source of living water comes"?

In Zuo Yuliang's view, the positive impact of this living water may have two aspects: one is to increase the amount of funds entering the market, which can alleviate the tight situation in the stock market, and the other is to bring some new shareholding concepts, invest in high-quality stocks, and hold them for a long time. The latter point, in particular, is where the management is most looking forward to the future development of the stock market. After all, the situation of a large number of retail investors in China's stock market is easy to rise and fall in a hurry, resulting in extreme market fluctuations that affect the stable development of the economy.

Of course, in addition to the positive effect, Zuo Yuliang also thought of another aspect, the so-called advantages and disadvantages, that is, when these funds make a lot of money in the market, once they want to withdraw, the huge selling pressure may also cause a large fluctuation in the stock market. It seems that the two-sided blade of northbound funds should be used with extra caution, strengthen monitoring and management, and not hurt others while it is self-interested, let alone hurt the market, otherwise, it will not be soft.

In the current market, Zuo Yuliang feels that the biggest problem is that a huge amount of money is needed to take over the huge sell-off of industrial capital arbitrage. As an enterprise, it is not easy to become a century-old store and prosper for a long time. Many industries, which were originally industrial spoils in the social era, are facing the risk of bankruptcy and elimination after a few years. The pace of science and technology to promote the development of the times is too fast, and enterprises have no innovation and vitality, and sooner or later they will be abandoned by the times. For those who do business, it is also a good way to sell their business at a good price at the right time, and it is also a good way to take 10,000 steps back.

After all, no one is a victorious general, and it is not a very good choice to leave the enterprise to those who have the ability to make it more brilliant?

Glory is only temporary, and more is the ordinariness and decline after the glory! This is Zuo Yuliang's shallow view of life and human nature after thinking about it.

But at present, the entry of northbound funds should be positive for the impact of large A shares. After all, the A-share market, which has recovered from a long illness, needs to recuperate for a long time, and needs funds to continue to enter the market to take over the market in order to accumulate the strength of the market to rise in the future.

In other words, even if the northbound funds are really Zhongshan wolves in the future, at present, they have not yet achieved their aspirations, but are in the stage of preparing for future ambitions, and they are comprehensively laying out the A-share market. In particular, listed companies with good quality in the market are the objects of their favor. But for big A shares that can only go long to make money, they are now one of the rare bullish allies in the market. Therefore, at present, most people still welcome the large-scale entry of northbound funds, and they are also happy to see them enter the market. Of course, Zuo Yuliang can't judge whether this phenomenon will be good or not in the future, maybe! It is not too late to wait until the future to talk about what will happen in the future.

Foreign capital has entered the market, and it has been continuously entered on a large scale, and it is obvious that they are optimistic about A-shares. Only investors in the A-share market are worried about which day the stock market will fall and which day the stock price will fall to the limit. From this point of view, domestic investors are still full of some lack of confidence in their own market. After so many years of construction and development of the stock market, we have not even cultivated the concept of self-confidence in the majority of stockholders, which shows how much suffering our stock market has caused many investors to suffer! Once bitten by a snake, I am afraid of the well rope for ten years! Especially for retail investors, once they are trapped or lose their principal, I am afraid that it will be difficult to turn over for ten years!

Northbound funds buy stocks, and there is one thing that Zuo Yuliang agrees with, that is, once they are optimistic about a certain stock, they will often continue to build positions within its value investment range. Imperceptibly, moderately building a position, not showing the mountains and waters, but after a long time, it will be found that the original stock price has hit a record high, and a typical example of this kind of stock is CTI.

Zuo Yuliang once saw an online report when he was 4.5 yuan, saying that the stock had received a large proportion of foreign investment. At that time, Zuo Yuliang just took a look and found that the stock had been in the process of falling, and he didn't take it seriously. This method of operation is not only in line with the management's desire to slow the stock market, but also avoids the crazy speculation brought about by the short-term participation of domestic funds.

It is conceivable that at this time, if there is a receiver who dares to follow the trend, foreign capital will contribute the chips in his hand with a smile. The bottom is open and the head is reduced, it seems that the northbound funds are doing better. This is really not admirable. But what is the deep-seated reason? Zuo Yuliang was puzzled. I really wanted to break the sky, only to get the revelation of God, it turned out that foreigners only have three words of stock speculation: can afford to wait!

The larger the amount of funds, the more you should be able to wait, the market is always spiraling, and the money that makes time is the money that makes the times continue to move forward, and to achieve this goal, you can only afford to wait.

Choosing an excellent company, buying it, and holding shares patiently can afford it, which should be the preferred investment strategy for funds with a certain strength in the market, and it is also a relatively excellent investment method obtained by Zuo Yuliang's research on northbound capital entering the market. Instead of practicing the harmful act of trying to make waves every day and attracting retail investors to follow the trend and chase the rise and cut leeks.

A good shareholding investment concept, coupled with patient waiting and cultivation, is a stock speculation enlightenment that Zuo Yuliang has drawn from studying northbound funds, and it is also an internal motivation for him to achieve long-term holdings.

It seems that at present, the northbound funds are entering the market, and the role shown is still positive and introverted, and they have not yet become Zhongshan wolves.

Before they became Zhongshan wolves, we had more places to learn from him than to guard against them!