2 1 Shi Ji Jing Ji Bao Dao·2025-09-04 05:38Core Viewpoint - The southbound capital inflow into the Hong Kong stock market has exceeded 1 trillion Hong Kong dollars this year, marking a new high since the launch of the Hong Kong Stock Connect in 2014 [4][5]. Group 1: Capital Inflow Data - As of September 2, 2023, the net inflow of southbound capital reached approximately 1,002.21 billion Hong Kong dollars, surpassing the 1 trillion mark [1][5]. - Since the launch of the Stock Connect on November 17, 2014, the total net inflow of southbound capital has reached 4.7 trillion Hong Kong dollars [5]. - The daily trading volume of southbound capital has increased from about 5% at the beginning of the Stock Connect to around 36% currently, maintaining a monthly share above 30% this year [6]. Group 2: Reasons for Capital Inflow - The significant valuation advantage and unique investment targets in the Hong Kong market are attracting southbound capital [6]. - High dividend stocks in the Hong Kong market provide stable cash flow and returns, appealing to institutional investors seeking stable investments [6]. - Policy incentives and a revitalized IPO market in Hong Kong are also contributing to the influx of southbound capital [6]. - The long-term strategic value of Hong Kong stocks, particularly in the context of RMB internationalization and the return of Chinese concept stocks, is drawing more capital for long-term allocation [6]. Group 3: Investment Preferences - The top ten stocks with the highest net purchases by southbound capital this year include Alibaba, Tencent, Meituan, and others, with Alibaba seeing a net buy of 12.67 billion Hong Kong dollars [8]. - Southbound capital is primarily concentrated in sectors such as finance, technology, and biomedicine, driven by the stability of financial stocks, the low valuation of technology stocks, and the growth potential of the biomedicine sector [8]. - The influx of southbound capital is enhancing liquidity in the market and increasing the influence of mainland capital on pricing, thereby stabilizing market expectations [8][9]. Group 4: Market Dynamics and Future Outlook - The shift in the investment landscape of the Hong Kong market is evident, with southbound capital now being driven by professional institutions rather than retail investors [9]. - The Hong Kong market is expected to experience a resonance of technological innovation and capital inflow by 2025, providing significant profit potential [9]. - The allocation of active mixed funds towards the Hong Kong market has increased, particularly in sectors like biomedicine and electronics, indicating a growing interest in these areas [10].