Chart of the day: Shenzhen stocks in limelight
Over the past year, overseas investors have bought more shares of Shenzhen-listed companies than those in Shanghai in 10 of the 12 months through the Stock Connect schemes. Except February and August, the average daily purchase of Shenzhen stocks by foreign investors exceeded that of those in Shanghai during the period. This reflects that overseas traders may have bought into China’s growth stocks, given that the Shenzhen exchange is dominated by small-caps. While lagging the broader markets in 2017, small firms, particularly those listed on the ChiNext board, are worth being put on the radar screen as foreign investors have been quietly making allocations to these stocks through the connect programmes, according to Essence Securities. As at December 21, the combined volume of shares in the ChiNext firms held by foreign investors through the stock links came to 691 million, an increase of 22 per cent from July, the brokerage said.