Mainland Chinese traders sell record amount of Hong Kong stocks

[HONG KONG] Investors in mainland China sold a record HK$20.4 billion (S$4.1 billion) worth of Hong Kong-listed stocks on Thursday (Aug 28), a sign the country’s army of investors are returning to their local market amid a breakneck rally.

The amount surpassed an earlier record of almost HK$20 billion set in 2021, amid a rout fuelled by a hike in stamp duty on stock trades.

Chinese equities are in the midst of a US$1 trillion rally, fuelled by optimism the nation’s vast pool of savings will provide a further boost to stock prices. While there have been some early signs of overheating in the market, average monthly stock turnover on the mainland is on track to hit a record high, suggesting retail interest remains elevated.

But the rush to the mainland in part just balances out a buying spree in Hong Kong earlier this year.

“There may be some funds reverting back to the mainland in a re-balancing of positions after the strong inflows lately,” said Wang Mingli, executive director at Shanghai Youpu Investment. BLOOMBERG