• Mainland investors poured a net HKD 12.9 billion into the Tracker Fund of Hong Kong via southbound stock connect. • The buying spree signals renewed confidence in Hong Kong equities despite a weak macro backdrop in mainland China. • The Hang Seng Tech Index saw significant inflows, with HSCEI ETF and Hua Hong Semiconductor also being top buys.
Mainland Chinese investors purchased a net HKD 12.9 billion of the Tracker Fund of Hong Kong (2800.HK) on Friday, the largest southbound inflow of the year, signaling a potential bottoming of sentiment toward the city’s battered equity market. The move comes as investors seek value in Hong Kong-listed shares, which have lagged their mainland counterparts.
"The sustained southbound inflows suggest that mainland investors are starting to see deep value in the Hong Kong market, especially in the large-cap and tech sectors," said a Hong Kong-based hedge fund manager. "This could be the start of a significant re-allocation."
The buying was concentrated in large-cap ETFs, with the HSCEI ETF (2828.HK) seeing a net inflow of HKD 4.7 billion. Semiconductor firm Hua Hong Semi (1347.HK) also saw strong buying, with a net inflow of HKD 775.9 million. The inflows come even as China's own economy shows signs of weakness, with April credit data falling significantly short of expectations.
This renewed interest in Hong Kong stocks could provide a much-needed lift to the Hang Seng Index, which has been one of the worst-performing major indices in 2026. The total transaction amount for southbound trading was HKD 153.18 billion. While some individual stocks like Alibaba (9988.HK) and YOFC (6869.HK) saw net outflows, the overall trend was clearly positive for the Hong Kong market.
This article is for informational purposes only and does not constitute investment advice.
