Guosen Securities: Second quarter Northbound capital inflow into A-shares hits a record high, increasing holdings in sectors such as outbound chains and computing power chips.

Guosen Securities stated that in the second quarter of this year, the overall inflow of northbound funds into A-shares reached 219.3 billion yuan, setting a new quarterly high since the launch of the Shanghai-Hong Kong Stock Connect. Northbound funds increased their holdings in offshore chains and computing power chips, while reducing their holdings in consumer and dividend stocks. Analysts such as Wu Xinkun pointed out in their report that the proportion of A-shares' free float market value held by the Shanghai-Hong Kong Stock Connect increased from 5.1% in the first quarter to 5.5% in the second quarter. In the second quarter, foreign funds flowed into companies such as Nande Times, Zhongwei Corporation, and Cambrian, while flowing out of companies such as Sanhuan Group, Guizhou Moutai, and Tianfu Communications. In the second quarter, foreign funds shifted to inflow into Hong Kong stocks by about 49.4 billion Hong Kong dollars, marking the first quarterly inflow since 2024. Foreign holdings in Hong Kong stocks amounted to about 16 trillion Hong Kong dollars, accounting for approximately 55% of the total market, decreasing from 56% in the first quarter. Foreign funds mainly flowed into sectors such as technology and non-ferrous metals in Hong Kong stocks, but overall pricing power in the technology sector has noticeably declined.