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<Research>BOCI Expects Net Southbound Capital Inflow into HK Stocks to Hike by 61% to RMB1.2T This Yr, Calls for Attention to Active Stocks Like CHINA MOBILE/ BABA
Recommend 69 Positive 113 Negative 47 |
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Hong Kong stocks were very volatile since the beginning of the year, according to BOCI's research report. Average daily turnover as of 9 April reached $254.3 billion, much higher than the $99.4 billion for the same period of 2024 and the $131.8 billion for the whole 2024. The HSTECH leaped a total of 4.95% YTD to 4,689 as of 9 April 2025. In addition, southbound trading played a key role in improving investment sentiment and stock selection ideas in the Hong Kong equity market. Over the past decade, China-related companies gradually dominated the Hong Kong stock market. As of the end of March 2025, shares of China-related companies accounted for 81.44% of the total market capitalization and 91.4% of the total trading turnover, according to data from HKEX (00388.HK). Year to 9 April 2025, southbound trading accounted for 21.4% of Hong Kong's average daily turnover, up from 17.3% in 2024, 14.1% in 2023 and 11.8% in 2022. BOCI forecasted a net inflow of RMB1.2 trillion in 2025, higher than RMB744 billion in 2024, from southbound trading between mainland China and Hong Kong. BOCI believed that the Stock Connect mechanism between mainland China and Hong Kong equities will be a key driver of the potential re-rating of Hong Kong stocks in the long term. YTD investment behavior data shows that southbound investors have focused on internet, telecoms, semiconductors and automakers. The broker advised investors to pay close attention to actively traded stocks for the southbound link, including TENCENT (00700.HK), XIAOMI-W (01810.HK), CHINA MOBILE (00941.HK), BABA-W (09988.HK), POP MART (09992.HK), HUA HONG SEMI (01347.HK) and MEITUAN-W (03690.HK). AAStocks Financial News |
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