Mainland investors buy Hong Kong stocks at record high

As of Dec. 20, traders in Shanghai and Shenzhen had bought HK$778 billion ($100 billion) in Hong Kong stocks this year, the highest annual total since the city opened trade ties in 2016, according to Bloomberg. Key purchases included shares of Alibaba, Bank of China and China Mobile.

The revival was fueled by Beijing’s stimulus measures, a weaker yuan and rising demand for dollar-denominated assets.

In the fourth quarter, onshore investors accounted for a record 45% of Hong Kong trading. Analysts predict that the future of the Hong Kong market will depend on the interplay between domestic demand and global fund outflows.

Since the establishment of the trading channel, onshore traders have bought Hong Kong stocks worth HK$3.3 trillion.