Chinese households to buy USD100bn more in HK stocks: HSBC

Mainland Chinese households hold CNY160tr (USD22tr) in cash, mostly in time deposits, with HSBC estimating that up to CNY50tr in excess savings could shift into equities as interest rates fall. About USD80bn has already flowed into Hong Kong stocks this year via the Stock Connect’s southbound channel, and inflows could rise to USD180bn by year-end. HSBC said lower onshore rates are boosting Hong Kong’s appeal as a gateway for regional and global investments. Cash makes up 70% of Chinese household financial wealth, while equity holdings fell to 10% in 2024. Recent IPO activity, led by Contemporary Amperex Technology’s USD5.2bn debut, has helped propel Hong Kong to the top of the global IPO rankings.