Southbound funds continued to have a net inflow this week, and dividend stocks became a safe haven.

This week, the Hong Kong stock market has shown resilience, with the Hang Seng Index rising by 1.1%. Southbound funds surged with a net inflow of 18.959 billion Hong Kong dollars, surpassing 622.9 billion Hong Kong dollars in cumulative net inflows since the beginning of the year, nearly 1.5 times higher than the same period last year. The banking sector and other dividend-related sectors are favored by investors, with China Construction Bank attracting nearly 6 billion Hong Kong dollars in the week. It is worth noting that with the continuous inflow of southbound funds, the Hang Seng AH shares premium index has dropped to its lowest level in nearly four years, and the premium of A shares relative to H shares has narrowed to 31%. Institutions indicate that Hong Kong dividend assets are currently becoming a "ballast stone" for funds to resist uncertainty. With the US economy weakening cyclically and the US dollar entering a downward trend, Hong Kong stocks are expected to benefit from the liquidity dividend brought by the outflow of US dollars.