Chinese Investors Dump Hong Kong Stocks at Record Pace, Rotate Into AI and Semiconductors
Hong Kong equity ETFs listed in China posted a record $3.7 billion in outflows last week, marking the fifth consecutive weekly outflow. Investors are rotating into China-listed semiconductor and AI stocks.
Mainland Chinese investors are exiting Hong Kong stocks at an unprecedented rate. Hong Kong equity ETFs listed in China recorded $3.7 billion in outflows last week, the largest weekly outflow on record. This marks the fifth consecutive week of outflows and the tenth in the last twelve weeks.
By comparison, Hong Kong stock ETFs saw only 11 weekly outflows during the entire year of 2025. The selling pressure persists despite a 10% surge in Tencent on Tuesday; mainland investors used the rally to exit approximately $268 million of Tencent shares on the same day.
Capital is flowing into China-listed semiconductor and artificial intelligence stocks, which traders view as more direct beneficiaries of the current AI boom. The rotation underscores a growing divergence in sentiment between Hong Kong and mainland equity markets.
Source: The Kobeissi Letter