Hong Kong Connect Flows (May): $0.6bn Outflows

Abstract: We analyzed Hong Kong Connect southbound flows for the month ended May 29th, estimating net outflows of USD 458.7 million from mainland investors into Hong Kong-listed stocks, a sharp reversal from inflows of USD 5,669.5 million in April. The HSCEI returned -0.8% over the same period. By sector, Information Technology ($2,676 million), Financials ($1,124 million), and Energy ($1,118 million) led inflows, while Consumer Discretionary ($2,370 million), Fund ($854 million), and Materials ($689 million) led outflows. On a stock level, SMIC was the top inflow recipient at $1,610 million, followed by China Mobile ($843 million) and Petrochina ($790 million), while Alibaba (-$1,514 million) and Tencent (-$1,486 million) saw the largest outflows. Among stake changes, Wellcell Hold gained the most at +37.18 percentage points, while Sunshine Lake Pharma saw the largest reduction at -24.22 percentage points.