Stock Connect Capital Continues to Flow In
Since the beginning of 2025, Hong Kong Stock Connect southbound capital has shown a sustained net inflow trend. According to statistics, cumulative net inflow has exceeded 100 billion HKD year-to-date, demonstrating strong allocation demand from mainland investors for the Hong Kong market.
Tech Leaders Receive Concentrated Capital Inflows
Tencent Holdings, Meituan and Xiaomi have become the primary targets of southbound capital. Tencent has received over 20 billion HKD in net buying, while Meituan and Xiaomi have each attracted tens of billions in capital inflows. Market analysts believe tech sector valuations at historical lows are the core factor attracting inflows.
Valuation Recovery Rally Unfolds
Driven by sustained capital inflows, the Hong Kong tech sector has shown a clear valuation recovery. The Hang Seng Tech Index has rebounded over 15% from its year-start low. Institutions believe the recovery could extend as China economic recovery expectations strengthen.
