GMTEight offers exclusive prices | Southbound 1.41 trillion "ballast" Korean retail investors "ignite" - Hong Kong stocks welcome the era of pricing rights stratification.

From 2025 to early 2026, the Hong Kong stock market welcomed two distinctly different but resonant incremental funds - mainland southbound funds with an annual net purchase of 1.41 trillion Hong Kong dollars, breaking historical records and becoming the core builder of Hong Kong stock pricing power; South Korean retail funds, on the other hand, with centralized bets in the style of "Dongxue Ants," high leverage trading, and extreme pursuit of cutting-edge technology, triggered a structural wave on the edge of the Hong Kong stock market. One focused on long-term allocation and value as an anchor, while the other on high-frequency trading and narrative-driven industry, outlining a new map of diversified funding sources and layered pricing logic in the Hong Kong stock market. Scale and structure: Absolute main force and marginal catfish There is a significant difference in the funding size between the southbound funds and South Korean stock investors in the Hong Kong stock market, but their functional positioning and market influence are irreplaceable. Southbound funds have been established as a core source of incremental funding and a reshaper of the valuation system of the Hong Kong stock market. By the end of 2025, the accumulated net inflow of southbound funds reached 5.11 trillion Hong Kong dollars, with a net purchase of 1.41 trillion Hong Kong dollars in 2025, close to the total of the three years from 2022 to 2024. The total market value exceeded 6.3 trillion Hong Kong dollars, accounting for 12.7% of the total market value of Hong Kong stocks. This magnitude indicates that southbound funds have crossed the "marginal replenishment" stage and evolved into an "endogenous pricing variable" in the Hong Kong stock market. South Korean stock investors have a relatively limited funding size in the Hong Kong stock market. However, their trading behavior is highly concentrated, with significant leverage characteristics and strong social synchronization in decision-making, allowing them to generate short-term pricing shocks and liquidity premiums in specific targets - especially in new economy IPOs, semiconductor industry chains, and artificial intelligence theme leaders. At the beginning of 2026, South Korean retail investors net purchased over $20 million in MiniMax-WP in a single month, and the stock's IPO recorded a 1837 times oversubscription, making South Korean funds an important catalyst for valuation premiums in the early stages of listing. Industry preferences: Layered configuration of value anchoring and growth sharpness The two funds exhibit significant hierarchical differentiation and limited track resonance in terms of industry coverage, reflecting fundamental differences in fund attributes, return targets, and decision durations. The financial industry and high dividend public utilities are the "independent configuration domains" of southbound funds. Targets such as China Construction Bank Corporation (00939), Industrial and Commercial Bank of China (01398), Ping An Insurance (02318), China Mobile Limited (00941), and China Shenhua Energy (01088) received systematic increases of hundreds of billions by southbound funds, driven by high dividend yields, low valuation percentiles, renminbi asset properties, and assumptions of sustainable operation. South Korean stock investors have nearly zero holdings in this sector.