<div id="readability-page-1">Mainland Chinese investors have slowed their purchases of Hong Kong-listed shares this year after last year’s record inflows, as more artificial intelligence investment opportunities have emerged in mainland markets, according to BNP Paribas. Southbound inflows via the Stock Connect cross-border system have reached about US$30 billion so far this year, a slower pace than 2025, when they hit US$180 billion for the full year, according to the French bank. The deceleration reflected changing market dynamics rather than a retreat from Chinese assets, BNP Paribas strategists said at a media briefing on Wednesday. “Investors are still positive on China’s AI story,” said Jason Lui, head of Asia-Pacific equity and derivative strategy, adding that the difference this year was that they had “more options to express those views”. Last year’s rally was driven by the sudden emergence of AI start-up DeepSeek, which caught markets by surprise and led to concentrated buying of Hong Kong-listed technology giants, he said. This year had no event of similar magnitude, while a wave of new listings over the past six to nine months had provided more pure-play AI investment options across both mainland and Hong Kong markets. As a result, investors were increasingly shifting from broad index exposure to more selective bets on individual companies, reducing the need to rely on Hong Kong-listed internet stocks as proxies for the AI theme, according to the bank. The slowdown in southbound inflows also reflected a higher base after last year’s surge, said Kenny Tang Sing-hing, chairman of the Hong Kong Institute of Financial Analysts and Professional Commentators. The shift was closely tied to the AI investment theme, as many of the most sought-after AI and chip companies had already secured funding from mainland cornerstone and strategic investors during their pre-IPO stages. “A lot of the capital has already gone into these companies before they list,” Tang said, noting that new shares were not accessible through the Stock Connect programme. Despite weaker southbound inflows, trading activity in Hong Kong has remained resilient. The average daily turnover in March rose 8 per cent from a year earlier to HK$304 billion (US$39 billion), while the total market capitalisation of Hong Kong’s securities market reached HK$45.9 trillion at the end of March, a 15 per cent increase from a year earlier, stock exchange data showed. The AI investment cycle continued to underpin the global equity market, according to BNP Paribas. Technology stocks, particularly those linked to hardware and supply chains, regained momentum in recent months, supported by strong pricing power and resilience to inflationary pressures, the bank added. </div>

00HSI

07500

02800

07300

03115

159920

07200

513600

03037

<p>Mainland Chinese investors have reduced their purchases of Hong Kong-listed shares this year, with southbound inflows via the Stock Connect system reaching about US$30 billion, down from US$180 billion last year. This slowdown is attributed to the emergence of more AI investment opportunities in mainland markets. Investors are shifting towards selective bets on individual companies rather than relying on Hong Kong-listed internet stocks. Despite the decline in inflows, Hong Kong's trading activity remains strong, with a rise in average daily turnover and market capitalization.</p>

AI-driven Hong Kong stock inflows from mainland China slow as options multiply