Southbound funds bought approximately HK$43.9 billion this week, increasing their holdings in Alibaba and Tencent while reducing their holdings in SMIC.

According to data from Wind, the net inflow of Southbound funds this week totaled approximately 43.959 billion Hong Kong dollars, an increase of about 20% compared to last week. At the same time, Southbound funds had a total turnover of 756.196 billion Hong Kong dollars for the week, accounting for about 50% of the turnover of the Hang Seng Index during the same period, with trading volume continuing to be at a relatively low level. There was a significant net purchase of Alibaba-W shares at 19.607 billion Hong Kong dollars; Shandao Holdings at 3.656 billion Hong Kong dollars; Tencent Holdings at 3.427 billion Hong Kong dollars; SMIC at 2.137 billion Hong Kong dollars; Meituan-W at 2.105 billion Hong Kong dollars; and Pinduoduo at 1.753 billion Hong Kong dollars. There was a significant net sale of Huahong Semiconductor at 0.866 billion Hong Kong dollars.