Foreign investors’ trading and earnings in China’s stock market ——Evidence from Shanghai-Shenzhen Stock Connect

Junkai Wang, Yaoxiang Nie and Baolei Qi

Applied Economics Letters, 2024, vol. 31, issue 20, 2161-2165

Abstract: Based on the trading data of Shanghai-Shenzhen Stock Exchanges from 2017 to 2020, we study whether foreign investors’ trading strategies have an impact on China’s A-share earnings. The results show that the net inflow of foreign capital is positively correlated with the return of A-share, and foreign capital prefers high-quality Chinese stocks. Foreign investors can operate accurately, buying at a low price and selling at a high price; A-share held by foreign investors can obtain excess earnings, and this effect will be amplified over time. This paper provides powerful inspiration for stock investors.

Date: 2024
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DOI: 10.1080/13504851.2023.2211332

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