Core Insights - As of November 4, cumulative net inflow from southbound funds has exceeded 1.27 trillion HKD, marking a historical high for annual net inflows despite nearly two months remaining until the end of 2025 [1] - The primary source of incremental capital in the Hong Kong stock market this year has been southbound funds, with significant inflows observed since October [1] - The low valuation and high dividend yield of the Hong Kong stock market compared to A-shares are key factors driving this trend, with the dividend yield of the Hong Kong central enterprise dividend ETF at 5.72% and the Hong Kong financial ETF at 4.93%, while A-share ordinary dividend yield is below 4% [1] - For ordinary investors, the trading threshold for southbound investment may pose challenges, making southbound ETFs a viable investment option [1]