Chinese Investors Shift AI Bets from Hong Kong to Mainland Amid New Listings

Mainland Chinese investors have slowed their purchases of Hong Kong-listed shares in 2026, following record inflows in 2025, as more artificial intelligence investment opportunities emerged in mainland markets. South China Morning Post reported that southbound inflows via the Stock Connect cross-border system have reached about US$30 billion so far in 2026.

This marks a slower pace than the US$180 billion recorded for the full year in 2025, according to BNP Paribas.

BNP Paribas strategists, speaking at a media briefing on Tuesday, described the deceleration as a reflection of changing market dynamics rather than a retreat from Chinese assets. “Investors are still positive on China’s AI story,” said Jason Lui, head of Asia-Pacific equity and derivative strategy at BNP Paribas.

He added that the difference in 2026 was that investors had more options to express views on China’s AI story.

Last year’s rally in 2025 stemmed from the sudden emergence of AI start-up DeepSeek, which caught markets by surprise and prompted concentrated buying of Hong Kong-listed technology giants, Lui said. In contrast, 2026 had no event of similar magnitude to the 2025 DeepSeek emergence.

A wave of new listings over the past six to nine months has provided more pure-play AI investment options across mainland and Hong Kong markets, according to BNP Paribas.

As a result, investors were increasingly shifting from broad index exposure to more selective bets on individual companies, reducing the need to rely on Hong Kong-listed internet stocks as proxies for the AI theme, the bank noted. The slowdown in southbound inflows also reflected a higher base after last year’s surge, said Kenny Tang Sing-hing, chairman of the Hong Kong Institute of Financial Analysts and Professional Commentators.