China Traders Are Buying Hong Kong Stocks Like Never Before
- Mainlanders have purchased record amount of shares this year
- The city’s equities have slid on China-U.S. political tensions
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Mainland money is flowing into Hong Kong’s stocks at an unparalleled pace, offering support to a market at the center of rising tensions between Beijing and Washington.
Eligible investors, which can range from brokers to insurers or individuals with at least 500,000 yuan ($70,000) in their trading accounts, had been net buyers of Hong Kong stocks in all but six sessions this year and pumped $35.4 billion so far across the border, the most for the period in data going back to 2017. Buying accelerated as Beijing’s plan to impose a security law on the city sparked an equity crash last week. The top targets of inflows were Chinese state-owned firms.