The public funds in Mainland China continued to increase their holdings in Hong Kong stocks in 2Q25, Guotai Haitong Securities said in a report. By index, mainland public funds mainly increased holdings in small and mid-cap stocks. In 2Q25, the proportion of constituent stocks of the Hang Seng Small and Mid-Cap Index in the total market cap of Hong Kong stocks held by funds increased by 5.6 ppts QoQ, while the proportions of holdings in the HSI and HSTECH sank 4.4 and 8.3 ppts QoQ respectively.Related NewsUBS Rates WUXI APPTEC as Buy w/ TP HKD104.6; Interim Results in LineBy industry, mainland public funds majorly increased holdings in the pharmaceutical and biological, light manufacturing, non-bank and banking sectors in 2Q25, corresponding to concepts such as innovative drugs, new consumption, and dividends. They reduced holdings in the technology sector of Hong Kong stocks, which had leapfrogged in 1Q25 due to Deepseek's catalyst, corresponding to concepts such as the internet and automobiles.