Southbound Stock Connect flows surge to record US$152b driven by Hong Kong’s IPO revival

Mainland Chinese investors poured a record US$151.8 billion into Hong Kong-listed stocks over the past year, demonstrating robust confidence in the city's financial market. This significant inflow, channeled through the Southbound Stock Connect program, reflects a strong appetite for Hong Kong equities, bolstered by a resurgence in initial public offerings (IPOs).

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Global capital flows will continue to be influenced by macroeconomic uncertainty, geopolitical shifts, rapid technological advances including digital finance and artificial intelligence, and the transition to a more sustainable economy.

According to the Securities and Futures Commission's (SFC) annual report, mainland investors acquired HK$1.19 trillion (US$151.8 billion) in Hong Kong shares in the 12 months leading up to March. Daily turnover for southbound flows saw an 84 percent increase year-on-year, reaching HK$124.1 billion. This accounted for 24 percent of the city's total market turnover, up from 20 percent a year prior.

SFC Chairman Kelvin Wong Tin-yau acknowledged that global capital flows are subject to macroeconomic uncertainty, geopolitical shifts, and rapid technological advancements. However, he emphasized the SFC's commitment to preserving Hong Kong's unique position as a crucial financial bridge between mainland China and the rest of the world.

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Amid emerging challenges, the SFC will stay focused on its strategic priorities to entrench Hong Kong’s irreplaceable position as the vital financial gateway bridging the mainland and the world.

CEO Julia Leung Fung-yee echoed this sentiment, stating the SFC's dedication to fostering resilience and supporting market transformation and technological innovation. The surge in investment highlights Hong Kong's enduring appeal as a financial hub, despite evolving global economic and political landscapes.

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In this ever-changing landscape, we are more committed than ever to fostering resilience as a powerful engine to support market transformation and technological innovation.