Since 2026, southbound funds have continued to flow in, and institutional personnel believe that Hong Kong stocks are expected to fluctuate upward

In 2025, southbound funds recorded a net inflow of HKD 1,404.844 billion. Entering 2026, southbound funds continued to increase their positions in the Hong Kong stock market. According to Wind data, as of January 13, there has been a cumulative net inflow of HKD 41.296 billion from southbound funds since the beginning of 2026. Driven by the continuous inflow of southbound funds, the Hong Kong stock market has performed impressively. As of the close on January 13, the Hang Seng Index has risen over 4% since the beginning of 2026, the Hang Seng Tech Index has risen over 6%, and more than 60% of the stocks in the Hang Seng Index with a total market capitalization exceeding HKD 1 trillion have risen, with an average increase of over 3%. Institutional personnel believe that the current market is facing a resonance of three factors: an increase in expectations for overseas liquidity easing, accelerated inflow of funds, and upward revisions of profit expectations, which suggests that the Hong Kong stock market is likely to experience a volatile upward trend. (China Securities Journal)