China Securities Co., Ltd.: Net buying of southbound funds hits new high year-to-date, continuous net inflow of funds in US bond funds.

China Securities Co., Ltd. released a research report stating that global risk appetite has continued to decline recently, with more funds flowing into U.S. fixed income funds and out of U.S. small and large cap growth stock funds; there has been some net inflow into global and U.S. large cap balanced stock funds. QDII ETFs related to the Hang Seng technology sector have received a significant amount of fund inflow, while funds have slightly flowed out of the Hang Seng Index. Overall, the trend of global fund rebalancing continues, with increasing investment interest in emerging markets and persistent outflow pressure from U.S. stocks. Key points from China Securities Co., Ltd.: Review of global market performance In September 2025, the Hong Kong stock market led global markets, with the Hang Seng Technology Index rising by 13.95% and the Hang Seng Index rising by 7.49%; Vietnam and Germany markets saw slight declines. Overall, most global stock markets rose in September, with technology growth leading the way. In terms of commodities, gold saw a significant rebound, while crude oil continued to decline. Cross-border fund flows AH fund flows: In September, the southbound trading of the Hong Kong stock connect continued to see net buying, reaching a new high for the year; overall, funds flowed into non-essential consumption. In terms of mutual recognition funds, a large amount of funds flowed in for the year, but the cumulative net outflow decreased after April. In August, the cross-border remittance amount for cross-border wealth management channels was 26.31 billion yuan, with 26.20 billion yuan for the southbound channel and 0.11 billion yuan for the northbound channel. Global fund flows: In August, more funds flowed into fixed income funds globally, while there was an outflow from equity funds, reflecting decreased investor risk appetite. Stock funds invested globally continued to receive more net inflows; however, U.S. small and large cap growth style stock funds experienced consecutive net outflows, while large cap balanced stock funds received some net inflows; there were also significant net outflows from Japan and UK stock funds. In terms of fixed income products, there was an overall net inflow of funds, with U.S. fixed income funds receiving the most net inflows, continuing the trend from July. QDII-ETF fund flows: In the past month, there has been a significant net inflow of funds into Hang Seng technology stocks again, followed by Hong Kong innovative pharmaceuticals, Hang Seng internet technology, China internet 50, Nasdaq 100, etc.; the outflow of funds has been relatively small, with slight net outflows from the Hang Seng Index, Hang Seng H-Share Index ETF index, Hang Seng healthcare, and others. Overall, following the trend from the previous month, the technology growth sector of Hong Kong stocks continues to maintain high investment interest, with further concentration, and the high dividend yield heat has decreased slightly.