CITIC Construction Investment: Southbound funds net purchases hit a new high for the year, and US bond funds continue to see net inflows
CITIC Construction Investment released a research report indicating that recent trends in global capital flows show that net inflows of southbound funds have reached a new high for the year, primarily flowing into U.S. fixed income funds, while U.S. stocks are facing outflow pressures. Overall, global capital rebalancing continues, and investment enthusiasm in emerging markets is rising. In September, the Hong Kong stock market performed excellently, with the Hang Seng TECH Index rising by 13.95%
According to the Zhitong Finance APP, CITIC Securities released a research report stating that global risk appetite has continued to decline recently, with significant funds flowing into U.S. fixed income funds and out of U.S. small-cap and large-cap growth stock funds; there has been some net inflow into global and U.S. large-cap balanced stock funds. In the QDII ETF, products related to the Hang Seng Technology Index have seen substantial inflows, while the Hang Seng Index has experienced slight outflows. Overall, the trend of global capital rebalancing continues, with increased investment enthusiasm in emerging markets and ongoing outflow pressure from U.S. stocks.
CITIC Securities' main viewpoints are as follows:
Global Market Performance Review
In September 2025, the Hong Kong stock market led globally, with the Hang Seng Technology Index rising by 13.95% and the Hang Seng Index rising by 7.49%; the Vietnamese and German markets saw slight declines. Overall, most global stock markets rose in September, with technology growth performing relatively well. In terms of commodities, gold rebounded significantly, while oil continued to adjust.
Cross-Border Capital Flow
AH capital flow: In September, the southbound trading of the Hong Kong Stock Connect maintained a net buying position, with net inflows reaching a new high for the year; overall funds flowed into non-essential consumer sectors. In terms of mutual recognition funds, a large amount of capital flowed in during the year, but the cumulative net outflow amount decreased after April. In August, the cross-border wealth management funds amounted to 2.631 billion yuan, with 2.620 billion yuan for southbound and 0.11 billion yuan for northbound.
Global fund capital flow: In August, a significant amount of global funds flowed into fixed income funds and out of equity funds, as investors' risk appetite declined. Global equity funds still achieved considerable net inflows; however, U.S. small-cap and large-cap growth style stock funds faced continuous net outflows, while large-cap balanced stock funds received some net inflows; Japanese and UK equity funds also experienced significant net outflows. Among fixed income products, there was an overall net inflow of funds, with U.S. fixed income funds receiving the most net inflow, continuing the trend from July.
QDII-ETF capital flow: In the past month, the Hang Seng Technology Index saw a significant net inflow of funds again, followed by Hong Kong innovative drugs, Hang Seng Internet Technology, China Internet 50, and Nasdaq 100; the net outflow was relatively small, with slight net outflows from the Hang Seng Index, Hang Seng China Enterprises Index, and Hang Seng Healthcare. Overall, the trend of capital flow from last month continues, with the Hong Kong technology growth sector maintaining a high level of investment enthusiasm and further concentration, while the enthusiasm for high dividends has somewhat decreased
