The premium of AH shares continues to narrow, and the net purchase amount of southbound funds exceeds the full-year amount in 2024.

On July 25, the net total purchase of southbound funds was 20.184 billion Hong Kong dollars, with 11.474 billion Hong Kong dollars of net purchases through the Shanghai-Hong Kong Stock Connect and 8.71 billion Hong Kong dollars of net purchases through the Shenzhen-Hong Kong Stock Connect. So far this year, the net total purchase of southbound funds has reached 820.28 billion Hong Kong dollars, exceeding the full year total of 807.9 billion Hong Kong dollars last year, setting a new historical high for the same period, demonstrating a significant increase in mainland investors' demand for Hong Kong stocks. This is the 25th consecutive month of net purchases of Hong Kong stocks by southbound funds. Guotai Haitong Securities stated that there is still room for further increase in southbound funds allocation, and the net inflow of southbound funds for the whole year is expected to exceed one trillion Hong Kong dollars. In terms of allocation direction, in the past month, southbound funds have mainly bought into internet leaders, pharmaceutical, banking, insurance companies, and other industries.