Overview

• Southbound purchases via Stock Connect reached HK$731.2 billion in the first half of 2025, lifting mainland investors’ share of daily turnover to about 50 percent
• Hang Seng Index gains of 21 percent in H1 outpaced China’s CSI 300 as domestic capital reallocated to offshore equities
• The premium of onshore A-shares over Hong Kong H-shares tightened to under 30 percent, the lowest in five years, as arbitrage activity intensified
• A re-rating of China’s technology sector and cheaper offshore valuations attracted both retail and institutional money into Hong Kong listings
• Standard Chartered and UBS cite policy support and easing U.S. tariff tensions as drivers for continued H-share upside and tighter A/H valuation spreads