Year-to-Date Southbound Stock Connect Inflows Exceed HKD 900 Billion for the First Time

According to Securities Times’ Data Treasure, the southbound segment of the Stock Connect program registered a net capital inflow of HKD 21.751 billion during the week of August 4–10. This figure represents a significant 63.15% decline compared to the previous week. Despite the weekly drop, cumulative southbound inflows since the beginning of the year have reached HKD 900.8 billion, crossing the HKD 900 billion threshold for the first time.

A research commentary from BOC International highlights that as the Stock Connect framework continues to evolve, capital from mainland China flowing into Hong Kong has become a critical source of incremental liquidity for the local equity market. Investors are notably inclined toward China concept stocks—firms that blend domestic support with innovative, new-economy business models. Compared to the regulatory scrutiny these companies face in U.S. markets, particularly concerning disclosure and audit standards, Hong Kong is perceived as offering a more stable institutional environment and clearer policy direction, contributing to a valuation premium.

Technology stocks led southbound investment activity during the reporting period. Alibaba-W recorded the highest net purchase volume, totaling HKD 3.339 billion. This marks the fourth consecutive week of increased southbound holdings in the company, which now total 1.579 billion shares—equivalent to 8.26% of its issued share capital. Other major tech firms also saw substantial inflows, with Tencent Holdings, Xiaomi Group-W, and SMIC each receiving more than HKD 1 billion in net southbound investment.