Net inflows from southbound trading have slowed YTD in 2026, while the HSTECH came under pressure amid escalating geopolitical risks, BOCI recently published a research report saying.
As of 21 April 2026, the average daily turnover of Hong Kong stocks reached $272.5 billion, higher than $254.2 billion in the same period last year and the 2025 average of $249.7 billion. As of 21 April, the HSI mounted a total of 3.34%, while the HSTECH sank 8.24%.
Looking ahead, the broker expected strong demand from mainland Chinese investors for Hong Kong equities via southbound trading to persist in 2026, mainly supported by a broader selection of high quality techs and high-end manufacturing stocks, attractive valuations of Hong Kong stocks and high dividend yields.
Southbound trading will become an important driver of the long-term potential re-rating of the Hong Kong market. Investment behavior data shows that southbound investors are focusing on the internet, new consumption and semiconductor sectors.
Repost: AASTOCKS