Abstract: We analyzed Hong Kong Connect southbound flows for the month ended March 31st, estimating net inflows of USD 8,702.5 million from mainland investors into Hong Kong stocks, marking the 11th consecutive month of inflows albeit 23.5% lower than February's USD 11,369.2 million. These inflows came against a backdrop of a -5.3% decline in the HSCEI over the same period, with Fund ($2,819m), Consumer Discretionary ($1,517m), and Communication Services ($1,341m) leading sector inflows while Materials, Health Care, and Financials saw outflows. On the buy side, Tencent led with $2,082m of inflows followed by Xiaomi ($841m), CNOOC ($743m), and Pop Mart International ($657m); on the sell side, China Life (-$754m), SMIC (-$721m), Zijin Mining (-$514m), and CHALCO (-$477m) saw the largest outflows. Tencent remains the largest southbound holding at $68,633m, followed by CNOOC ($39,235m), CCB ($36,156m), and Alibaba ($34,983m).
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