Recently, Goldman Sachs has raised its forecast for the 2025 Inflow of southbound funds from 75 billion USD to 110 billion USD, an increase of 46.7%.
According to the Zh Tong Finance APP, Goldman Sachs has recently raised its forecast for the 2025 Inflow of southbound funds from 75 billion USD to 110 billion USD, an increase of 46.7%. This adjustment is mainly based on the following factors:
Enhanced attractiveness of Hong Kong stocks: H shares demonstrate better value for money in terms of profit growth potential, valuation levels, and dividend yield.
Market expansion effect: The increase in the number of investable symbols in Hong Kong stocks driven by new listings and the return of Chinese concept stocks.
Demand for Exchange Rate hedging: The demand from domestic investors to hedge against fluctuations in the renminbi exchange rate through southbound channels is on the rise.
Cross-border allocation trend: Funds within China are increasing efforts in cross-border asset allocation, and the pricing power of Hong Kong stocks is gradually enhancing.
As of April 25, 2025, the total net inflow of Southbound Capital for the year has reached 557.9 billion yuan, reflecting a continuous warming of market activity.
Editor/Lee