Southbound funds continue to "sweep up" Hong Kong stocks, with real estate, finance, and other sectors favored.

Since the beginning of the year 2026, southbound funds have continued to "sweep up" and have become an important force supporting the Hong Kong stock market. Among major global markets, Hong Kong stocks are still undervalued, with the price-to-earnings ratio of the Hang Seng Tech Index lower than that of most mainstream market indices globally, highlighting the value of allocation. Several institutions believe that against the backdrop of stabilizing corporate profit expectations and continuous inflow of various funds, the Hong Kong stock market has the potential for a "valuation + profit" rebound. In terms of fund flows, the southbound funds have been increasing their positions. As of the close of February 13, 2026, the net cumulative purchase amount of southbound funds since the beginning of the year has reached 152.84 billion yuan. In just February alone, the net cumulative purchase amount of southbound funds has reached 83.869 billion yuan. In terms of industry distribution, the allocation direction of southbound funds is relatively clear, with a high concentration of industry distribution. As of February 13, the top three industries in terms of net purchases by southbound funds in the past month are real estate, finance, and optional consumer goods, followed by the information technology industry.