Net inflow of southbound funds exceeds HK$5 trillion for the first time, boosting pricing power.

On November 10th, the southbound funds flowed into the Hong Kong stock market via the Stock Connect program with a net inflow of 6.654 billion Hong Kong dollars, pushing the net inflow for the year to over 1.3 trillion Hong Kong dollars. The cumulative net inflow since the launch of the Stock Connect program has also exceeded 5 trillion Hong Kong dollars, setting a new record since the establishment of the mutual market access mechanism. Interviewees told Securities Times reporters that the continuous record-breaking net purchase amount of southbound funds not only signifies a qualitative change in the liquidity and activity of the Hong Kong stock market but also highlights the strategic allocation needs of mainland funds for undervalued and scarce assets in the Hong Kong stock market. At the same time, with the triple benefits of policy support, industrial upgrading, and global liquidity easing, the Hong Kong stock market is expected to continue the slow bull market of "valuation restoration + growth premium," becoming a key window for global investors to allocate Chinese assets. The continuous increase in southbound funds not only improves the liquidity of the Hong Kong stock market but also enhances the pricing power of mainland funds in the Hong Kong stock market.