Despite the recent rise in geopolitical risks, the HIBOR remained low, with overnight rates still near zero, reflecting ample liquidity in Hong Kong's financial market, BOCI released a research report saying.

As of 18 June, southbound trading recorded strong net inflows, with southbound fund scale reaching RMB650.7 billion, up 104% YoY. The broker believed that this is mainly driven by the dual factors of economic recovery expectations and rising geopolitical risks.

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BOCI forecasted that the demand for Chinese investors to allocate Hong Kong stocks will remain strong, with the total southbound net inflow expected to grow to RMB1.2 trillion in 2025, compared to RMB289.4 billion/ RMB744 billion in 2023/ 2024, respectively.

BOCI suggested investors focus on actively traded stocks for the southbound trading, and believed that southbound inflows will play a significant role in improving investment sentiment and stock selection logic in the Hong Kong stock market.

It is also expected that funds will favor high-quality technology and high-end manufacturing stocks and stocks with attractive valuations and higher dividend returns, including BABA-W (09988.HK)  0.000 (0.000%)    Short selling $969.99M; Ratio 11.138%   (BABA.US)      , MEITUAN-W (03690.HK)  0.000 (0.000%)    Short selling $1.13B; Ratio 15.295%   , CHINA MOBILE (00941.HK)  0.000 (0.000%)    Short selling $68.76M; Ratio 6.897%   , TENCENT (00700.HK)  0.000 (0.000%)    Short selling $836.48M; Ratio 12.627%   , SMIC (00981.HK)  0.000 (0.000%)    Short selling $138.32M; Ratio 4.443%   and LI AUTO-W (02015.HK)  0.000 (0.000%)    Short selling $350.13M; Ratio 36.552%   , all of which are rated at Buy.
(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2025-07-08 16:25.) (Real-time Streaming US Stocks Quote; Except All OTC quotes are at least 15 minutes delayed.)

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