According to Jinshi Data, Huatai Securities research report pointed out that through analysis of the US 13F report, overseas leading asset management institutions reduced their holdings of Chinese stocks in the second quarter, and the over-allocation ratio fell to the historical low since 2018.
In terms of industries, finance and daily consumption are the common directions for A-shares and Hong Kong stocks to increase their positions, but there is a slight differentiation within them. A-shares mainly increase their positions in household and personal products, food and beverages, and insurance, and reduce their positions in retail, consumer services, and pharmaceuticals; Hong Kong stocks increase their positions in high dividend and growth stocks, and reduce their positions in automobiles, parts, and retail.
Looking ahead, the Federal Reserve is expected to start a cycle of interest rate cuts, and foreign capital may flow back. We recommend paying attention to four high-probability clues: the convergence of the AH premium, the "parity" of dividends for A50, the continued prosperity of consumer electronics and shipping, and the pharmaceutical and Hong Kong-listed Internet that benefit from interest rate cuts.
