news flash·2025-07-02 01:42Core Viewpoint - The article discusses the significant inflow of southbound funds into the Hong Kong stock market, highlighting record net purchases and sector performance as of mid-2025. Group 1: Southbound Fund Inflows - In April 2025, southbound funds recorded a net purchase of 166.72 billion HKD, marking the second-highest monthly total in history, following January 2021's record of 310.62 billion HKD [4] - The average daily net purchase of southbound funds in the first half of 2025 was 6.36 billion HKD, with 96 trading days showing net buying, accounting for 83.5% of the half-year market activity [6] - The highest single-day net purchase was 35.59 billion HKD on April 9, 2025, while the highest net sale was 18.53 billion HKD on May 12, 2025 [7] Group 2: Sector Performance - The banking, pharmaceutical, and electronics sectors saw the largest increases in southbound holdings, while the power equipment and building materials sectors experienced declines [9] - The banking sector had a net increase in holdings of 318.52 billion HKD, followed by pharmaceuticals at 210.98 billion HKD and electronics at 157.08 billion HKD [9] - Notably, 34 stocks had southbound holdings exceeding 10 billion HKD, with Tencent Holdings, Alibaba, and Xiaomi Group leading the list [10] Group 3: Individual Stock Performance - The top ten stocks with the largest increases in southbound holdings included Tencent Holdings (501.56 billion HKD), China Mobile (271.95 billion HKD), and China Construction Bank (252.54 billion HKD) [13] - Xiaomi Group, despite a significant increase in market value, saw a nearly 2% decrease in shareholding volume [10] - The top five stocks favored by southbound funds are Tencent Holdings, China Mobile, China Construction Bank, Xiaomi Group, and Industrial and Commercial Bank of China [12]