Hong Kong's mainland inflow via Stock Connect hits record HK$820B in 2025, up 1.5% from 2024

Hong Kong’s stock market has attracted an unprecedented influx of capital from mainland China in 2025, with investments through the Stock Connect program reaching HK$820 billion ($104 billion) year-to-date, surpassing the previous year’s record of HK$807.9 billion [1]. This surge underscores the deepening integration of China’s domestic capital with Hong Kong’s financial system, positioning the city as a critical conduit for mainland investors seeking access to technology stocks and regulated cross-border opportunities. The total value of inflows via Stock Connect since its 2014 launch has now exceeded HK$4.5 trillion, with over a third—HK$1.5 trillion—occurring in just the last two years [2].

The program, which links mainland exchanges with Hong Kong, has reshaped trading dynamics. Southbound transactions—funds moving from mainland China into Hong Kong—now account for over 50% of daily trading volume on Hong Kong’s main board, a sharp rise from under 20% in 2019 [3]. This shift is driven by the program’s access to tech firms like Tencent and Alibaba, listed in Hong Kong but inaccessible to mainland investors under China’s capital controls. The rebound in shares of these firms has been amplified by easing regulatory pressures and breakthroughs in domestic AI innovation, such as DeepSeek’s large language model [4].

Policymakers have actively reinforced this trend. At a January 2025 conference in Hong Kong, People’s Bank of China Governor Pan Gongsheng announced plans to support “more high-quality enterprises” listing and issuing bonds in the city while increasing the allocation of national foreign exchange reserves to Hong Kong [5]. These measures follow 2024 regulatory changes by the China Securities Regulatory Commission to streamline cross-border listings and tighten market integration, which have spurred a record IPO pipeline in Hong Kong [6].

The capital inflow reflects a broader reallocation of wealth within China rather than global investment. Despite Hong Kong’s historical role as an international financial hub, the current surge is largely driven by domestic capital seeking higher returns amid a stagnant real estate sector and regulatory uncertainty in other industries. While policymakers emphasize Hong Kong’s role in fostering market openness, the dominance of mainland funds highlights the city’s evolving function as a domestic capital reservoir rather than a traditional offshore gateway [7].

Source: [1] [title1Hong Kong enjoys all-time high investment flow from mainland China] [url1https://coinmarketcap.com/community/articles/68839f6d52a2d235956dd1f8/] [2] [title2Hong Kong enjoys all-time high investment flow from mainland China] [url2https://coinmarketcap.com/community/articles/68839f6d52a2d235956dd1f8/] [3] [title3Hong Kong enjoys all-time high investment flow from mainland China] [url3https://coinmarketcap.com/community/articles/68839f6d52a2d235956dd1f8/] [4] [title4Hong Kong enjoys all-time high investment flow from mainland China] [url4https://coinmarketcap.com/community/articles/68839f6d52a2d235956dd1f8/] [5] [title5Hong Kong enjoys all-time high investment flow from mainland China] [url5https://coinmarketcap.com/community/articles/68839f6d52a2d235956dd1f8/] [6] [title6Hong Kong enjoys all-time high investment flow from mainland China] [url6https://coinmarketcap.com/community/articles/68839f6d52a2d235956dd1f8/] [7] [title7Hong Kong enjoys all-time high investment flow from mainland China] [url7https://coinmarketcap.com/community/articles/68839f6d52a2d235956dd1f8/]