CITIC Construction Investment: Recently, global capital risk appetite has declined in stages, and global capital has been drastically withdrawn from the Japanese and South Korean markets

The Zhitong Finance App learned that CITIC Construction Investment released a research report saying that global capital risk appetite has recently declined in stages, capital inflows from fixed income funds have increased, and equity funds from Japan, South Korea, and global emerging markets have experienced significant net capital outflows, reversing the previous net inflow trend. In the QDII ETF, Hong Kong stock innovative drugs have high dividends, the US stock index maintained a certain net inflow of capital, and Hang Seng Technology once again experienced a sharp phased outflow.

CITIC Construction Investment's main views are as follows:

Global market performance review

In June 2026, global stock market performance was divided, with Japan leading gains. France, A shares, and the UK closed higher overall, while Hong Kong stocks, gold, and crude oil fell significantly; since July, the market has intensified turbulence, Hong Kong stocks and commodities have rebounded, and South Korea has pulled back sharply.

Cross-border capital flows

AH capital flow: In June 2026, the Hong Kong Stock Exchange Southbound capital resumed net purchases, but the net inflow was at a low level of nearly a year; capital inflows into industry, information technology, etc.; non-essential consumption continued to flow out. In terms of mutual recognition funds, the cumulative net remittance amount fell back to 106.9 billion yuan in May. In May, the amount of cross-border remittance funds from Cross-border Banking Connect was 1,155 billion yuan, including 1,142 billion yuan for Southbound Connect and 0.14 billion yuan for Northbound Connect, a decrease from the previous month.

Global fund capital flows: In May, global capital risk appetite declined in stages, and capital inflows from fixed income funds increased. Among stock funds, the US large balance stock base, the large global investment stock base, and the Greater China stock base received more net capital inflows; the US market grew and the mid-market share base continued to have a net outflow trend. In addition, stocks in Japan, South Korea, and global emerging markets recently experienced significant net outflows of capital, reversing the previous net inflow trend. Among fixed income products, US fixed income funds obtained the most net inflows. The net inflow for a single month rebounded sharply from the previous month, reaching a new high during the year.

Overseas funds hold A shares: As of the first quarter of 2026, the total holdings of overseas public funds in Chinese assets were approximately RMB 5.50 trillion, including RMB 1.07 trillion (19.5%) for A-shares, RMB 4.00 trillion (72.8%) for Hong Kong stocks, and RMB 0.43 trillion (7.8%) for Chinese capital stocks. From an industry perspective, A-shares focus on manufacturing, Hong Kong stocks focus on finance and platforms, and Chinese securities focus on the consumer internet.

QDII-ETF capital flow: In terms of net capital outflows, the Hong Kong stock innovative drugs and dividends, and the US stock index maintained a certain net inflow in January, including Hong Kong Stock Innovative Drugs, NASDAQ 100, S&P 500, and Hong Kong Stock Connect dividends. Hang Seng Technology experienced significant phased outflows under market influence, and the net outflow of Hang Seng Internet Technology and Hang Seng consumption also ranked high. Overall, the capital flow of Hong Kong stocks has shifted from Hang Seng Technology to innovative drugs and high dividends in the Hong Kong stock market. Driven by the global technology market, stocks related to US stocks continue to be favored by investors. Furthermore, the FTSE Asia Pacific Low Carbon Select Index also maintained a net inflow of capital.

Risk warning: This report is for investment reference only. The fund's past performance does not indicate its future performance, nor does it constitute a guarantee of investment income or investment advice. The data statistics in this article come from third-party databases. The update time for different databases is different. The completeness of the data is related to the extraction time, and the data may be inaccurate. Information such as size and positions disclosed in the fund's regular report is static point-in-time data. There is a possibility of short-term position adjustments to whitewash the statements, which may not necessarily reflect the actual investment behavior of the fund. Due to the fact that there is a certain time lag in the disclosure of the fund's regular reports, the fund's investment behavior may have changed, and there are certain deviations.