Investors snapped up shares worth HK$29.6 billion (S$5.1 billion) on a net basis, surpassing the previous record seen in early 2021
[HONG KONG] Mainland Chinese investors bought an unprecedented amount of Hong Kong stocks on Monday (Mar 10), continuing to boost their holdings amid a tech-driven rally this year.
They snapped up shares worth HK$29.6 billion (S$5.1 billion) on a net basis, surpassing the previous record seen in early 2021, according to Bloomberg-compiled data going back to late 2016 – when trading links with the financial hub began.
Chinese stocks listed in Hong Kong have been on a tear this year, thanks to the emergence of an artificial-intelligence model from startup DeepSeek that was considered a game-changer in the industry. A gauge of Chinese equities in Hong Kong has outperformed the onshore benchmark as the former houses some of the nation’s biggest tech firms like Alibaba Group Holding and JD.com.
Monday’s inflows from Chinese buyers came as the Hang Seng China Enterprises Index slid 2.1 per cent following a 5.9 per cent rally last week.
“Mainland funds are keen on buying at the dips, as they still believe most of the Hong Kong tech stocks are still undervalued,” said Jason Chan, a senior investment strategist at Bank of East Asia. “The major difference of views between foreign investors and Chinese mainland investors is that global investors are more concerned over the geopolitical risks and mainland investors are speculating more on favourable policy towards the AI industry.”
The HSCEI gauge is up nearly 20 per cent this year while the onshore benchmark CSI 300 Index has shed 0.2 per cent.
The rally in Hong Kong has come even as tariffs-induced trade tensions with the US have intensified. By setting an ambitious economic growth target of around 5 per cent this year, China’s ongoing annual legislative session that started last week also has fuelled investors’ hopes for stronger stimulus measures.
Mainland investors have become more influential in the Asian financial hub. In February, they bought HK$153 billion of Hong Kong shares on a net basis, the second-largest monthly purchase on record.
Southbound trading accounted for about 24 per cent of the average daily turnover last month, versus 16 per cent a year ago, according to Hong Kong Exchanges & Clearing data. BLOOMBERG
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