Stock Connect programme

The Stock Connect programme is a cross-border investment channel facilitating trading between mainland China and Hong Kong. It allows mainland Chinese investors to purchase eligible Hong Kong-listed securities, and vice versa. Recently, the programme has become newsworthy due to significant shifts in mainland investor behavior. In July and August, mainland investors demonstrated a clear rotation within the Hong Kong market. They increased their purchases of Hong Kong stocks, with July seeing HK$62.9 billion in net buying. This trend is particularly notable as investors pivoted away from traditional sectors and into technology, specifically artificial intelligence (AI)-linked companies. For instance, in August, AI model developer MiniMax Group saw substantial net buying. This strategic reallocation suggests mainland investors are seeking growth opportunities in cutting-edge technology and potentially using Hong Kong as a market to diversify or capitalize on specific sector trends, even amidst volatility in AI-related shares.