Chinese Funds Buy Record $1.6 Billion of Hong Kong Stocks Today

Inflows help narrow earlier losses sparked by U.S. selloff
Hong Kong stocks are cheaper relative to mainland peers

Light displays sit on buildings on the city skyline ahead of Chinese President Xi Jinping's arrival in Hong Kong, China, on Wednesday, June 28, 2017. Hong Kong is making preparations to mark the 20th anniversary of the former British colony's return to Chinese rule, with July 1 marking the first time Xi will visit the city since taking office.Photographer: Anthony Kwan/Bloomberg

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By Kana Nishizawa

February 5, 2018 at 3:43 AM UTC

Updated on

February 5, 2018 at 8:22 AM UTC

This article is for subscribers only.

Hong Kong’s stock market now has a sizable bulwark against global bearishness: Chinese buyers from north of the border.

After the benchmark Hang Seng Index plunged as much as 2.7 percent on Monday in the wake of a U.S. slump, mainland investors purchased a net 10.2 billion yuan ($1.6 billion) of the city’s shares through exchange links with Shanghai and Shenzhen. That’s the biggest inflow since Chinese authorities widened the investment channel in December 2016, according to data compiled by Bloomberg using daily quota usages. By the close, the Hang Seng’s losses had narrowed to 1.1 percent.