Chinese funds cut Hong Kong stock holdings to 2-year low despite strong southbound flow

Chinese mutual funds reduced their Hong Kong stock holdings via the southbound Stock Connect to a two-year low in the second quarter of 2024, with the share of Hong Kong stocks in their portfolios falling to 23.3%, according to a report by China International Capital Corporation. Despite a significant southbound capital flow during the same period, the holdings declined compared to the 23.9% recorded two years earlier.