Southbound capital net purchases have approached HK$430 billion year-to-date, with institutions saying the overall trend of Hong Kong stocks is expected to improve.

Since the beginning of this year, southbound capital has significantly increased its positions in the Hong Kong stock market, making it one of the most important sources of incremental capital for the Hong Kong stock market. Wind data shows that as of September 29, southbound capital has recorded cumulative net inflows of nearly HK$430 billion this year. Over the past month, industries such as information technology, industrials, and financials have been favored by southbound capital, with net buying amounts ranking at the top. Institutional figures believe that in the short term, repeated fluctuations in overseas liquidity expectations and valuation volatility in the technology sector remain the main disruptive factors for the Hong Kong stock market. Looking ahead, under the combined catalysis of improving liquidity expectations, earnings improvement, and enhanced valuation cost-effectiveness, the overall trend of the Hong Kong stock market is still expected to improve.