Southbound Capital Records Annual Net Purchase of HK$1.19 Trillion in Hong Kong Stocks
Claire Weston
In the 12 months to March 2026, mainland investors bought a net HK$1.19 trillion of Hong Kong stocks via southbound Stock Connect — a record that signals a structural shift in who drives Hong Kong's liquidity.
How big is HK$1.19 trillion?
Mainland investors purchased a net HK$1.19 trillion (≈US$151.8 billion) of Hong Kong equities through southbound Stock Connect, the highest annual figure on record.
The data comes from the Securities and Futures Commission's (SFC) annual report, released Wednesday.
This means → mainland capital is no longer a supplementary flow — it is becoming a price-setting force in Hong Kong's market.
How much of Hong Kong's turnover now comes from the mainland?
Southbound daily turnover jumped 84% year-on-year to HK$124.1 billion.
Its share of total Hong Kong market turnover rose from 20% to 24%.
In plain terms = for every HK$100 traded in Hong Kong, HK$24 now comes from mainland investors — and the ratio is still climbing.
This reflects a structural shift in Hong Kong's liquidity mix, with mainland capital's marginal influence expanding steadily.
What drove this surge?
The SFC attributes the trend to a revival in Hong Kong's IPO market — a growing pipeline of new listings drew accelerated inflows from both mainland and international capital.
SFC Chairman Tim Lui stated: "Global capital flows will continue to be shaped by macroeconomic uncertainty, shifts in the geopolitical landscape, rapid advances in digital finance and AI, and the transition to a sustainable economy."
This means → the southbound surge was not driven by a single factor. The IPO recovery was the catalyst, but macro and technology variables will determine whether it lasts.
Can the momentum continue?
SFC CEO Julia Leung stressed that the regulator will focus on "fostering resilience to support market transformation and technological innovation."
Whether next fiscal year sustains this pace depends on two variables: the continued vitality of Hong Kong's IPO pipeline and the trajectory of mainland and global macro conditions.
Put simply = money arriving is not money staying — whichever shifts first, IPO supply or the macro wind, will rewrite this story.
Content is for reference only, not financial advice.