Prime Highlights:
Mainland Chinese investors set a new record with net purchases of Hong Kong stocks, totaling 29.62 billion HKD ($3.81 billion) on March 10, 2025.
Alibaba and Tencent, which are not traded on mainland exchanges, saw the largest net purchases.
Key Background:
Mainland Chinese investors have made significant strides in the Hong Kong stock market, with net purchases hitting a record 29.62 billion Hong Kong dollars (approximately $3.81 billion) on Monday, as per the Wind Information database. This marks the highest net buy since the launch of the Hong Kong “connect” program, which facilitates easier access to offshore stocks for Chinese investors. The Shanghai Connect, initiated in 2014, and the Shenzhen Connect, introduced in 2016, have played key roles in this surge.
The tech-heavy Hang Seng Index, recently trading near three-year highs, has seen a particular interest from investors, with stocks of major Chinese tech firms, Alibaba and Tencent—both unavailable on mainland exchanges—recording the highest net purchases. The uptick in investments follows recent pro-growth measures from Beijing, including increased fiscal stimulus and an expansion of consumer subsidies.
As part of China’s ongoing push to support technological innovation, analysts are optimistic about the performance of Chinese equities, particularly in the tech sector. A notable shift in global investment patterns is expected, with many experts predicting a flow of capital out of the U.S. and into Europe and Asia. Investment banks, such as Citi, have upgraded their outlook on Chinese stocks, citing technological advancements like Tencent’s AI-driven video generator and Alibaba’s QwQ-32B as proof of China’s growing prowess in the tech space.
The continued enthusiasm for Hong Kong stocks is also linked to the affordability of Chinese equities, which many investors now see as “cheap and under-owned.” As global markets recover, experts suggest that Greater China, including Hong Kong’s internet and consumer-related stocks, will be a key area for investment.
