Since the beginning of this year, the net inflow of southbound funds has surpassed 900 billion Hong Kong dollars for the first time.

According to statistics, this week's net inflow of southbound funds totaled 21.751 billion Hong Kong dollars, a decrease of 63.15% from the previous week. The cumulative net inflow since the beginning of the year has reached 900.8 billion Hong Kong dollars, surpassing 900 billion for the first time. China International Capital Corporation's research report believes that with the continuous deepening of the Hong Kong Stock Connect system, mainland southbound funds have become an important source of incremental funds for the Hong Kong stock market, especially favoring Chinese concept stocks that have a Chinese background and align with the new economy direction. Compared to the U.S. stock market's institutional pressure on Chinese concept stocks in terms of information disclosure, audit compliance, etc., the Hong Kong stock market is seen as a more institutionally inclusive and policy-safe capital harbor, thus forming a certain premium valuation expectation. In terms of net buying amount, large technology stocks have all received additional southbound funds. Among them, Alibaba-W received the highest net buying amount from southbound funds this week, reaching 3.339 billion Hong Kong dollars. Alibaba-W has seen its southbound funds holdings increase for 4 consecutive weeks, with the latest holding amount being 1.579 billion shares, accounting for 8.26% of the total number of shares in the Hong Kong stock market. In addition, Tencent Holdings, Xiaomi Corporation-W, and SMIC International all had net buying amounts of over 1 billion Hong Kong dollars.