China Strategy - Northbound Stock Connect: Net fund inflow surged 150% mom in Aug

■   Northbound trading recorded net fund inflows of Rmb26.9bn in Aug, a surge of 150.0% mom.

■   The average daily turnover (ADT) of northbound trading decreased slightly from Rmb137.1bn (buy and sell) in Jul to Rmb136.9bn in Aug.

■   By sector, the greatest focus for northbound flow (both inflow and outflow) in Aug 2021 was on IT, industrials and materials. Interest in the property, energy, and utilities sectors was low in Aug 2021.

■   The top five companies recording the largest net fund inflows in Aug were Shenzhen Mindray Bio-Medical Electronics (300760.CH), CITIC Securities (600030.CH), Zhejiang Sanhua Intelligent Controls (002050.CH), China Merchants Bank (600036.CH), and Midea Group (000333.CH).

■   The top five stocks with the largest net fund outflows in Aug were Kweichow Moutai (600519.CH), Wuliangye Yibin (000858.CH), Ping An Insurance (601318.CH), Jiangsu Hengrui Medicine (600276.CH), and Gree Electric Appliances (000651.CH).