Huatai Securities: Active foreign capital sees net inflow for the first time this year.

Huatai Securities pointed out that last week the market continued to trade with increased volume, in terms of fund perspective, we observed the following: 1) Trading funds continued to flow into the market, with over 90 billion yuan in margin financing inflows last week, and activity levels reached a new high since 2016; 2) Since the end of June, new public offerings have continued to recover, with nearly 20 billion shares of public funds issued last week, with over 50 new equity funds established, showing an increase compared to the previous period; 3) Active positioning foreign investors have shifted to net inflows for the first time since mid-October last year, and as of early August, the position of active foreign investors in A shares is still at a central level since 2021, indicating there may still be room for further increases. In addition, in the short term, the breakout of margin financing activity out of the normalization range, a slight decrease in fund positions, and an increase in net selling may indicate a slight increase in market crowding pressures.