For nearly three years, mainland Chinese money flowed into Hong Kong equities with the consistency of a tide that only seemed to know one direction. That streak just broke.
In May, mainland investors recorded a net sell-off of approximately HK$3.55 billion through the Southbound Stock Connect programs. It’s the first monthly net outflow since June 2023, and it comes after a first quarter that saw more than HK$220 billion pour into Hong Kong stocks.
From record buying to sudden retreat
Average daily turnover for southbound flows in early 2026 roughly doubled compared to the prior year. Technology and consumer stocks were the primary magnets.
The single-day swings tell the story even more vividly. On March 5, southbound investors dumped a record HK$27.7 billion in a single session. Days later, they reversed course and bought HK$37.2 billion worth, also a record.
