The Hong Kong stock exchange reported its highest quarterly profit in almost four years after the China’s incentive measures had stimulated the trade and listing volume.
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Beijing-Chinese investors on the mainland are stacking on the stock market in Hong Kong on record volumes while the technically heavy Hang Seng-Index will be traded in three years.
Net mainland Chinese purchases of shares in Hong Kong reached a record 29.62 billion Hong Kong dollars ($ 3.81 billion) on Monday, according to the Wind Information Database.
That was the most since the stock market of Hong Kong launched its “Connect” program with the mainland, making local investors more easily access to a select number of shares that were traded offshore. The Shanghai Connect was launched in November 2014, while the Shenzhen Connect was opened in December 2016.
The Hang Seng-Index traded on Tuesday morning around 0.7% lower lower lower lower lower after a sharp sale in US shares at night for worrying about the impact of rates on global growth.
Just buys almost 18 billion HKD through the Shanghai Connect on Monday, while those of the Shenzhen Connect reached 11.63 billion HKD, according to the data.
Hong Kong-treated shares of Alibaba And TentBoth are not traded on mainland China, saw the largest net purchases, according to wind data.
China confirmed his pro-growth position last week by emphasizing plans to support technical innovation in the private sector and increase its tax deficit to a rare 4% of the gross domestic product – Including an extensive program for consumer subsidies.
The global macro strategy team of CITI has upgraded its vision of Chinese shares on Monday – namely the Hang Seng China Enterprises Index – to overweight, while he downgrade to neutral.
“An important reason why we are not focused on Chinese shares is the rate risk,” said the analysts.
“Summary of this issue, we believe that the case was clear to China Tech. A) Deepseek proved that China Tech is on the Western technological border (or beyond) despite the export controls. This was followed by the release of Tencent’s Hunyuan (an AI-Videogerator) and Alibaba’s added.
‘Cheap and subject’ shares
Chinese and foreign institutional investors started to stack back into Chinese shares after Beijing started announcing more powerful stimulus plans at the end of September. Chinese shares received another boost after the rise of the newest model of Deepseek at the end of January led to a global tech sale. More large technology companies are traded in Hong Kong than on mainland China.
Manishi Raychaudhuri, CEO of Emmer Capital Partners, said that investors could soon return money to emerging markets, in particular Asian emerging markets, as soon as worldwide shares come out of the current rut.
“I would largely say that it would still be larger China, which largely means Hong Kong, China. The shares are cheap and investigated under it,” Raychaudhuri told CNBC’s “Street Signs Asia” on Tuesday.
“We have seen a certain degree of consumption in the form of what the policy makers have been doing since January. It is not yet in the full extent that the market would like to have, but at least it is a deviation from the trend of many years,” he continued.
“So, in addition to my list, it would still be Hong Kong, China, the internet stocks, the large internet platforms and also some of the consumption-related names, usually in Athleisure, the restaurant stocks and other travel and tourist names,” said Raychaudhuri.
– Sam Meredith and Anniek Bao from CNBC contributed to this report.