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CICC: Southbound Funds Mainly OW China Mobile, China Telecom, China Tower in 1Q, UW Tencent
2024-04-25 12:08:31
CICC released a statistical report on fund holdings of Shanghai-Hong Kong Stock Connect in the first quarter of this year. Judging from the recently disclosed data on holdings of Chinese public funds in the first quarter, the holdings in the electronics sector turned south for five straight quarters, whereas the holdings in communications sector elevated quarterly.

In the first quarter, Chinese funds majorly raised their holdings in TFC (300394.SZ), EOPTOLINK (300502.SZ) and ZHONGJI INNOLIGHT (300308.SZ). On the Shanghai (Shenzhen) Hong Kong Stock Connect, northbound funds mainly hiked holdings of ZHONGJI INNOLIGHT, while southbound funds mainly increased holdings of CHINA MOBILE (00941.HK) and CHINA TELECOM (00728.HK).

In terms of inflow amount, the southbound capital primarily lifted holdings of CHINA MOBILE, CHINA TELECOM, CHINA TOWER (00788.HK) and other high-dividend shares. The single-quarter net inflow of the three companies totaled $16.647 billion (CICC's calculations).

Meanwhile, southbound funds continued to considerably reduce their holdings of TENCENT (00700.HK) in the first quarter of this year, with a net outflow of $5.378 billion in a single quarter. The market value of their holdings in Southbound Connect was $260.4 billion.
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