Net Inflow of Southbound Funds into Hong Kong Stocks Against the Trend Since March, Defensive Sectors Become Core Allocation

K-LinePoet · 2026-03-24T22:48:23+00:00

Since March, as geopolitical risk sentiment has intensified, overall market sentiment has weakened, the Hong Kong stock market has entered an adjustment phase, and investment themes have gradually shifted toward defensive sectors. Against this backdrop, southbound funds have maintained a net inflow status. Analysts believe that recently, the allocation direction of southbound funds exhibits evident risk-averse characteristics, with high-dividend targets and counter-cyclical industries receiving significant increases in holdings, and portfolio structures continuously optimizing amid volatility. In the context of heightened global uncertainty, increasing allocation to risk-averse assets has become the mainstream choice for funds, with high-dividend, energy, and financial sectors at valuation bottoms possessing medium to long-term allocation value. (China Securities Journal)

K-LinePoet

2026-03-24 22:48:23

Since March, as geopolitical risks have increased, overall market sentiment has weakened, and the Hong Kong stock market has entered a correction phase. Investment focus has gradually shifted toward defensive sectors. Against this backdrop, southbound funds continue to maintain a net inflow. Analysts believe that recently, the allocation of southbound funds has shown clear risk-averse characteristics, with high-dividend stocks and counter-cyclical industries receiving significant increases, and the portfolio structure constantly optimizing amid fluctuations. In the context of rising global uncertainties, increasing allocation to safe-haven assets has become the mainstream strategy. High-dividend, energy, and financial sectors at valuation lows have medium- to long-term investment value. (China Securities Journal)

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