Investors bought Chinese equities in Nov but prices did not rise

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Singapore, Dec 7 2020

November was the month of buying equities and we saw net buying in every single equity asset class we track (see chart above). Essentially

  • US equities saw a lot of trading volume but relatively modest net purchase.
  • Chinese equities saw lesser trading but net buy amounts more than 4 times what we saw in the US listed equities

To find which stocks were most popular please look at the chart below.

  • AT&T was the most bought US stock amongst our investors. This lines up with the steady rise in AT&T stock price during Nov and nicely anticipated Warner’s announcement a few days ago about streaming movies direct to HBO Max in 2021.
  • Iron Mountain had strong quarterly earnings which likely resulted in it being bought
  • Rest of the US market purchases had a technology angle to them. There was also some pharma like J&J (and also Gilead — it could not labelled due to lack of space in the chart above)

Chinese stocks were bought but prices did not rise

The chart above shows that Alibaba and Tencent were the most bought Chinese stocks. However the stock prices of both these stocks hardly moved in Nov. This is very intriguing. Had it not been for the US China tensions, so much buying would have been a classic bullish signal (investors have bought in size but the stock has not reacted). It will be interesting to see how this pans out over the coming weeks

Please note that this newsletter is just a data analysis of actual investor behavior and does not constitute investment advice in any form.

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Written by

Tanmai is the CEO and Founder of Canopy, which is an investment reporting and analytics company. Here he analyses investment trends seen in Canopy's meta-data

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