Mainland Investors Pour Record $95bn into Hong Kong Stocks in H1 2025

In 2025, Hong Kong's stock market has demonstrated a strong recovery and outperformance relative to mainland China's markets, driven by a surge in mainland Chinese investment and an active tech rally. The Hang Seng Index rose notably, supported by gains in major technology stocks like Alibaba, Tencent, and Meituan, as well as robust IPO activity with over 40 listings and fundraising exceeding HK$100 billion. Mainland investors have poured a record amount into Hong Kong stocks, with net southbound purchases reaching historic highs via the Stock Connect program. This influx contrasts with stagnant mainland A-share performance, which struggles amid economic headwinds including deflationary pressure, weak consumer demand, and a property crisis. Experts attribute Hong Kong's market strength to favorable valuations, improved earnings, and its role as a vital financing hub for mainland enterprises, while mainland retail investor confidence remains subdued. Beijing's commitment to fostering a unified national market and improving corporate quality further underpins the positive outlook for Hong Kong's capital markets.