Chinese Investors Record HK$435 Billion Inflows into Hong Kong Stocks

Mainland Chinese investors have made a historic influx into Hong Kong's stock market in the first quarter of 2025, with net inflows surpassing HK$435 billion ($55.93 billion) through the Stock Connect scheme, driven by enthusiasm for artificial intelligence and portfolio diversification. This surge has propelled tech giants like Alibaba and Tencent, leading to significant gains in the Hang Seng Tech Index, which is now one of the top-performing global benchmarks. HSBC's survey indicates that affluent investors are optimistic about the prospects for Hong Kong equities, with 55% expecting a rise in major indices by the end of the year, fueled by AI advancements. However, concerns about technological disruptions persist, with nearly half of the surveyed high-net-worth individuals viewing them as potential investment risks. Investment banks such as Morgan Stanley and J.P. Morgan have also raised their targets for Chinese equity indices, reflecting renewed confidence amid an earnings rebound and improving policy signals. The positive sentiment is further bolstered by successful IPOs and advancements in AI technology, particularly from companies like DeepSeek.