Chinese investors snap up Hong Kong stocks as flows near record
Southbound net inflows expanded by another HK$2.7 billion (S$440.8 million) on Tuesday (Jul 22), taking this year's total to HK$800 billion, a whisker away from 2024's previous record of HK$808 billion.
The accelerated buying came as the Hang Seng China Enterprises Index gained 24 per cent this year, in a rally fuelled by DeepSeek-led technology breakthroughs, mainland investors' hunt for quality assets and global funds' diversification needs. Also driving the southbound flows is a less robust onshore market, where the CSI 300 benchmark has risen 4.7 per cent in the same period.
Southbound flows may exceed HK$1 trillion this year, according to estimates by China International Capital Corp (CICC) analysts including Kevin Liu. They expect the purchases to taper in the current half year as mainland mutual and insurance funds run low on dry powder.
Mutual funds may add only HK$100 billion for the rest of the year before they approach the 50 per cent cap for Hong Kong equity positions that applies to most funds, while insurance firms may buy another HK$200 billion, CICC's analysts estimate.
The level of mainland investor participation has climbed with the inflows, with southbound turnover accounting for 47 per cent of the Hong Kong market's year-to-date average and up about 10 percentage points from 2024's level. Still, there may be room for retail demand to increase, as exchange-traded funds' turnover was less than 1 per cent of the total last month under the stock link between Hong Kong and the mainland. BLOOMBERG
Hashtags

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles

Straits Times
42 minutes ago
- Straits Times
S-E Asia's transshipments a target as US takes aim at China's supply chains
Sign up now: Get ST's newsletters delivered to your inbox Some analysts believe the ultimate goal of the focus on transshipment is an attempt to reshape South-east Asia's trade dynamics. SINGAPORE - US President Donald Trump is dragging South-east Asian countries deeper into his trade war with China, insisting they crack down harder on Chinese exporters allegedly using them to dodge his tariffs, analysts said. After complaining for years, the Trump administration has finally zeroed in on the region's transshipment trade – a logistics strategy to facilitate the efficient movement of goods through strategically located hubs.

Straits Times
an hour ago
- Straits Times
Trump says he thinks US will have a ‘very fair deal' on trade with China
Sign up now: Get ST's newsletters delivered to your inbox China is facing an Aug 12 deadline to reach a durable tariff agreement with Mr Trump's administration. WASHINGTON - US President Donald Trump said on July 30y that talks were moving along with China and he expected the two sides would reach a fair deal on trade. 'We're moving along with China. We're doing fine with China,' Mr Trump told reporters at the White House. 'I think it's going to work out very well. We're right in step. I think we're going to have a very fair deal with China.' US and Chinese officials met in Stockholm on July 28 for more than five hours of talks aimed at resolving economic disputes with a goal of extending their truce on a trade war by three months. China is facing an Aug 12 deadline to reach a durable tariff agreement with Mr Trump's administration, after Beijing and Washington reached preliminary deals in May and June to end escalating tit-for-tat tariffs and a cut-off of rare earth minerals. Mr Trump's administration has agreed trade deals with the European Union, Britain and Japan. It is negotiating with multiple other countries to achieve more. REUTERS Top stories Swipe. Select. Stay informed. Singapore Water supply issues during Toa Payoh blaze affected firefighting operations; SCDF investigating Singapore 3 taken to hospital after fire in Marsiling flat Singapore School, parents on alert after vape peddlers approach primary school pupil Singapore Tampines, Toa Payoh BTO flats most popular among first-time home buyers in July HDB launch Sport Leon Marchand sets first world record at World Aquatics C'ships in Singapore Singapore Jail, fine for man linked to case involving 3 bank accounts that received over $680m in total Singapore Provision shop owner who raped 11-year-old gets more than 14 years' jail Singapore Escape, discover, connect: Where new memories are made

Straits Times
an hour ago
- Straits Times
Trump says he thinks US will have a 'very fair deal' on trade with China
Sign up now: Get ST's newsletters delivered to your inbox A U.S. and Chinese flag flutter outside Sweden's government offices \"Rosenbad\" in Stockholm, Sweden, July 29, 2025, ahead of the second day of trade talks between China and the U.S., TT News Agency/via REUTERS/File Photo WASHINGTON - U.S. President Donald Trump said on Wednesday that talks were moving along with China and he expected the two sides would reach a fair deal on trade. "We're moving along with China. We're doing fine with China," Trump told reporters at the White House. "I think it's going to work out very well. We're right in step. I think we're going to have a very fair deal with China." U.S. and Chinese officials met in Stockholm on Monday for more than five hours of talks aimed at resolving economic disputes with a goal of extending their truce on a trade war by three months. China is facing an August 12 deadline to reach a durable tariff agreement with Trump's administration, after Beijing and Washington reached preliminary deals in May and June to end escalating tit-for-tat tariffs and a cut-off of rare earth minerals. Trump's administration has agreed trade deals with the European Union, Britain and Japan. It is negotiating with multiple other countries to achieve more. REUTERS