Southbound Capital Net Inflow Hits HK$62.9 Billion in July, Up 132% Month-on-Month
Southbound capital net inflow reached about HK$62.9 billion in July, surging 132% month-on-month. The inflows were concentrated in early July when the Hang Seng Index traded below 25,000 points, with several single-day inflows exceeding HK$10 billion. After the index broke above 25,000 points on July 20, southbound funds began reducing positions, recording net outflows for seven consecutive trading days totaling HK$24.45 billion by month-end. By sector, information technology, raw materials, and healthcare saw net inflows of HK$40.84 billion, HK$20.75 billion, and HK$18.00 billion, respectively.
Southbound capital recorded a net inflow of approximately HK$62.9 billion in July, representing a month-on-month increase of about 132% from June. The inflows were mainly concentrated in the early part of the month when the Hang Seng Index was trading below the 25,000-point level, during which single-day inflows exceeding HK$10 billion occurred several times. After the Hang Seng Index stabilized above 25,000 points on July 20 and broke higher, southbound funds began to reduce positions at elevated levels, with net outflows for seven consecutive trading days near the end of the month, totaling a cumulative HK$24.45 billion.
By sector, the information technology, raw materials, and healthcare industries recorded net inflows of HK$40.84 billion, HK$20.75 billion, and HK$18.00 billion, respectively, in July. Financial, telecom, and energy blue-chip sectors also attracted fund attention, while the industrial sector saw a net outflow of HK$5.73 billion due to adjustments in the AI hardware direction.
In terms of individual stocks, southbound funds made significant net purchases of Zhipu (HK$29.62 billion), Alibaba-W (HK$7.39 billion), NetEase (HK$5.81 billion), and GigaDevice (HK$5.24 billion) over the past month. Meanwhile, substantial net sales were recorded for Kingboard Laminates (HK$9.58 billion), SMIC (HK$6.24 billion), Yangtze Optical Fibre and Cable (HK$6.03 billion), and Xiaomi Group-W (HK$3.39 billion).
On July 31, southbound funds posted a net inflow of approximately HK$481 million, with the Shanghai-Hong Kong Stock Connect recording a net inflow of about HK$559 million and the Shenzhen-Hong Kong Stock Connect recording a net outflow of about HK$1.04 billion. On the same day, significant net purchases included Xiaomi Group-W (HK$1.72 billion), Alibaba-W (HK$1.23 billion), Tencent Holdings (HK$795 million), Zhipu (HK$575 million), and GigaDevice (HK$409 million). Major net sales included Meituan-W (HK$636 million) and Yangtze Optical Fibre and Cable (HK$216 million).