GuShiio.com ① Since the Spring Festival, the Hong Kong stock market has ushered in a resonant allocation of global funds. The “AI+” sector has become a consensus between capital and foreign investment in the south, but there are differences in the specific allocation links.
② The top ten net inflows of the four types of institutions show that funds from the south follow the “technology + dividend” allocation, foreign investment favors leading China’s technology companies, and Chinese intermediary funds flow into high-dividend stocks such as banks, petroleum, and insurance.
The research report of Zhang Qiyao’s team of Xingzheng Strategy pointed out that as of February 21, 2025, compared with the end of 2020, the share of the market value of Hong Kong Stock Connect held increased by 6.7 percentage points from 4.9% to 11.6%, while the share of the market value of international intermediaries decreased by 2 percentage points to 45.6%.
The full text of the research report is as follows:
Previously, domestic capital, represented by capital from the south, has always been an important force in the allocation of Hong Kong stocks, and its pricing power in the Hong Kong stock market is gradually increasing. As of February 21, 2025, compared with the end of 2020, the market value of Hong Kong Stock Connect held increased by 6.7 percentage points from 4.9% to 11.6%, while the market value of international intermediaries held decreased by 2 percentage points to 45.6%.
Since the Spring Festival, the Hong Kong stock market has welcomed a resonant increase in global funds. By dismantling the inflow structure of various types of funds:
1) The “AI+” sector is the consensus between capital and foreign investment in the south, but the specific additional allocation links are different. Foreign investment has significantly increased the allocation of middle and upper reaches represented by software services and information technology equipment. In addition to adding professional retail (mainly Alibaba), telecommunications, media entertainment, semiconductors and other links, foreign investment has also been widely allocated to a large number of “AI+” fields, including medical medicine, automobiles, etc.
2) In addition to the “AI+” sector, funds from the south continue to flow into the dividend sector and resonate with some Chinese-funded intermediaries and local intermediary funds in Hong Kong. Funds from the south continue to flow into the dividend sector represented by banks, utilities, and insurance, and resonate with Chinese-funded intermediaries and Hong Kong local intermediary funds in public utilities, insurance and other industries.
Judging from the net inflow of the top ten stocks in the four types of institutions:
1) The capital from the south follows the “dumbbell” configuration of “technology + dividends” and not only flows into AI leaders represented by Alibaba, China Mobile, Fast Hand, SMIC, etc., but also continues to flow into high-dividend stocks represented by banks;
2) Foreign investment significantly favors leading China technology companies, including Tencent, Xiaomi, Meituan, Shangtang, etc.;
3) Chinese-funded intermediary funds continue to flow into high-dividend stocks such as banks, petroleum, and insurance;
4) Hong Kong’s local intermediary funds significantly favor individual stocks in optional consumer industries such as retail, automobiles, trendy toys, entertainment, and medical care.
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Only public information is compiled, not involving investment suggestions and research opinions
