Mainland Chinese Investors Buy Record Amount of Hong Kong Stocks

Sangmi Cha and Winnie Hsu

Mon, Mar 10, 2025, 2:29 AM 2 min read

(Bloomberg) -- Mainland Chinese investors bought an unprecedented magnitude of Hong Kong stocks connected Monday, continuing to boost their holdings amid a tech-driven rally this year.

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They snapped up shares worthy HK$29.6 cardinal ($3.8 billion) connected a nett basis, surpassing the erstwhile grounds seen successful aboriginal 2021, according to Bloomberg-compiled information going backmost to precocious 2016 — erstwhile trading links with the fiscal hub began.

Chinese stocks listed successful Hong Kong person been connected a teardrop this year, acknowledgment to the emergence of an artificial-intelligence exemplary from startup DeepSeek that was considered a game-changer successful the industry. A gauge of Chinese equities successful Hong Kong has outperformed the onshore benchmark arsenic the erstwhile houses immoderate of the nation’s biggest tech firms similar Alibaba Group Holding Ltd. and JD.com Inc.

Monday’s inflows from Chinese buyers came arsenic the Hang Seng China Enterprises Index slid 2.1% pursuing a 5.9% rally past week.

“Mainland funds are keen connected buying astatine the dips, arsenic they inactive judge astir of the Hong Kong tech stocks are inactive undervalued,” said Jason Chan, a elder concern strategist astatine Bank of East Asia. “The large quality of views betwixt overseas investors and Chinese mainland investors is that planetary investors are much acrophobic implicit the geopolitical risks and mainland investors are speculating much connected favorable argumentation toward the AI industry.”

The HSCEI gauge is up astir 20% this twelvemonth portion the onshore benchmark CSI 300 Index has shed 0.2%.

The rally successful Hong Kong has travel adjacent arsenic tariffs-induced commercialized tensions with the US person intensified. By mounting an ambitious economical maturation people of astir 5% this year, China’s ongoing yearly legislative league that started past week besides has fueled investors’ hopes for stronger stimulus measures.

Mainland investors person go much influential successful the Asian fiscal hub. In February, they bought HK$153 cardinal of Hong Kong shares connected a nett basis, the second-largest monthly acquisition connected record.

Southbound trading accounted for astir 24% of the mean regular turnover past month, versus 16% a twelvemonth ago, according to Hong Kong Exchanges & Clearing Ltd. data.

(Updates with details connected marketplace performance)

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