On Tuesday (1st), the Hong Kong stock market rebounded, with the three major indices generally rising. The Hang Seng Tech Index jumped over 1%, reaching the highest increase of 39% so far this year. Previously, Hong Kong stocks experienced a period of pullback, yet funds from the south increased their positions against the trend, with a net inflow for seven consecutive trading days, indicating strong investor confidence. Statistics show that in March, the net buying amount from southern funds in Hong Kong stocks reached HKD 160.2 billion, marking the largest monthly net purchase since January 2021, and the second largest monthly net purchase since the opening of the Shenzhen-Hong Kong Stock Connect in late 2016. It is worth mentioning that the net purchase amount in January 2021 was HKD 310.6 billion.
Since the beginning of this year, the cumulative net purchase from southern funds has reached HKD 438.6 billion, nearly 54% of the total net inflow level of last year. This inflow of capital not only reflects investors' confidence in the Hong Kong stock market but also further elevated the market valuation.
Analysts from CITIC Securities pointed out that the rapid valuation increase of the Hang Seng Tech Index might bring a series of spillover effects, especially in fields such as innovative drugs, artificial intelligence, and healthcare, where investment opportunities will emerge. Meanwhile, the pullback of the Hang Seng Tech Index also provides mid-term investors with excellent buying opportunities. These signals indicate that the Hong Kong stock market still holds appeal, particularly as investment opportunities in the tech and innovation industries gradually surface.
