Core Insights - Southbound funds recorded a net inflow of HKD 80.62 billion from August 11 to 15, 2025, with significant investments in non-bank financials, hardware equipment, pharmaceutical biology, software services, and real estate II sectors, totaling a net inflow of HKD 130.61 billion across the top five industries [2][5][30] - On August 15, 2025, southbound funds achieved a single-day net inflow of HKD 358.76 billion, marking the highest level since 2018 [2][5][30] Industry Performance - The Hang Seng Index rose by 1.65% and the Hang Seng Tech Index increased by 1.52% during the period from August 11 to 15, 2025, with healthcare, information technology, and materials sectors leading the gains, while utilities lagged [5][12][27] - The top five industries for southbound fund inflows were: - Non-bank financials: HKD 47.23 billion - Hardware equipment: HKD 37.1 billion - Pharmaceutical biology: HKD 22.62 billion - Software services: HKD 14.31 billion - Real estate II: HKD 9.36 billion [2][5][30] Fund Flow Dynamics - Southbound funds showed a divergence from foreign institutional flows, with southbound investments focusing on non-bank pharmaceuticals while foreign capital targeted media and software sectors [5][30] - From August 1 to 15, 2025, southbound funds had a net inflow of HKD 543.79 billion, primarily into software services, hardware equipment, non-bank financials, consumer discretionary retail, and pharmaceutical biology [5][45] Sectoral Trends - The report highlighted that the inflow of southbound funds was concentrated in technology sectors, while foreign capital increased its stake in pharmaceuticals and non-ferrous metals [5][45] - The major outflows were observed in sectors such as telecommunications services, durable consumer goods, and automotive components [5][30][45]