NorthboundRatio

Northbound Holding Ratio — Lundblad Shi Zhang and Zhang 2026

Liquidity

Quick facts

Factor ID NorthboundRatio
Display name Northbound Holding Ratio
Family Predictor
Category Liquidity
Direction higher_expected_return
Status supported
Paper Lundblad Shi Zhang and Zhang 2026
Source tables
Required fields
PIT required no
Coverage 2023-06-02 – 2026-03-31 · 66,721 rows · 9.7% of panel

Formula

Stock Connect northbound holding ratio (%)

China adaptation

Uses Tushare hk_hold API; only covers Stock Connect eligible stocks post-2014.

Direction-adjusted cumulative return

0.87 0.92 0.97 1.02 1.07 2023-06 2023-11 2024-05 2025-03 2026-03

Return metrics

Metric Value
Months in sample 20
Monthly mean -0.2400%
Monthly std 4.3583%
Annualized Sharpe -0.19
t-stat (simple) -0.25
Hit rate (months > 0) 45.0%
Last 12M compounded -9.47%
Cumulative wealth (start = 1) 0.936

Recent 12 months

Month L/S return Cumulative Names
2024-02 -3.59% 0.997 3282
2024-04 +1.88% 1.015 3295
2024-05 +5.34% 1.070 3299
2024-06 -3.53% 1.032 3324
2024-07 -2.58% 1.005 3327
2024-09 -10.75% 0.897 3338
2024-12 +2.10% 0.916 3379
2025-03 -1.66% 0.901 3392
2025-06 +0.39% 0.904 3534
2025-09 -3.32% 0.874 3541
2025-12 +2.76% 0.898 3736
2026-03 +4.18% 0.936 3750

Known data issues

None recorded.

Notes

Coverage limited to Connect-eligible universe (~2000 stocks).

See also: Liquidity family, Factor library, Factor returns.