Investment Bank Goldman Sachs has reviewed its projection of funds flows to the south within the action connections between the Chinese continent and Hong Kong.
The new estimate provides for $ 110 billion inputs by 2025, compared to the previous projection of US $ 75 billion. The institution points out as justification the greatest attractiveness of the actions listed in Hong Kong, known as actions H.
In a report recently released, Goldman Sachs stressed that the review reflects the improvement in H stock indicators, such as profit growth, market evaluations and dividend income.
It also contributed to the new forecast to increase the universe of investments available, driven by recently listed companies or in the process of returning to the Hong Kong Stock Exchange.
According to the report, the flows to the south have been the most intense beginning of recent years and are currently the main capital channel for the Horas Market H.
The data indicate that South investors made net purchases of US $ 78 billion in the 2024 accumulated, which corresponds to 75% of the scheduled entries for the year.
Among the main sectors that received contributions are technology focused on artificial intelligence (AI) and high -performance dividend actions, which totaled $ 29 billion and US $ 22 billion, respectively, or about 65% of investments made.
South investors currently hold $ 577 billion in shares listed on the Hong Kong Stock Exchange, which is 13% of the market value of the eligible stocks for these flows, above 10% registered the previous year. The participation of these investors in the total volume of transactions has also grown from 17% by 2024 to an average of 21% in the year.
In addition to Goldman Sachs, other international financial institutions have also reviewed their predictions for Chinese assets. In March, the institution raised its target price for emerging market actions, based on the expectation that the performance of Chinese AI-related actions positively influences other markets, according to Reuters agency.
XI Junyang, professor at the University of Finance and Economics of Shanghai, told Global Times state newspaper that there are two main factors behind the expansion of negotiations to the south.
The first is the relatively low assessment of Hong Kong’s actions, which makes them more attractive. The second is the significant volume of international capital that these actions have attracted, which, according to him, indicates a tendency of appreciation.
China Galaxy Securities, in a statement published on Monday, pointed out that the central government’s commitment to more active macroeconomic policies can contribute to stable growth in the profits of the companies listed in Hong Kong.
The institution cited the uncertainty caused by changes in the external scenario as one of the factors that justify the most intense action of the Chinese authorities in economic stabilization.
Data released by a Chinese financial information provider show that sectors such as wind energy, technology, consumption and finance have concentrated southern investments. The movement reflects the diversification strategy of the funds and the alignment with the sectors that have been increasingly growing.
In a publication of April 13, Hong Kong Financial Secretary Paul Chan Mo-PO highlighted the city’s willingness to attract international broadcasters to the local market. “The city already has a regulatory framework that facilitates the double or secondary listing of companies listed abroad,” said Chan.
The secretary also reported that he ordered the Brazilian Securities and Future Values Commission and the Hong Kong Exchanges and Clearing Limited (HKEX) to prepare for the possibility of return of Chinese publicly traded Chinese companies to the local market.
“In the light of recent global events, I instructed the Securities and Future Values Commission and HKEX to prepare completely for the potential return of Chinese conceptual actions listed abroad,” he wrote.
Chan added that HKEX should intensify its performance in the Southeast Asia and the Middle East markets to attract more quality companies to these regions to Hong Kong listing. He also highlighted the importance of capturing additional international capital and strengthening the city’s position as a global financial center.
Based on current data, analysts accompany the movement of flows to the south as an indicator of investor trust in the Hong Kong market and the region’s ability to consolidate their position in the international financial system.
The increase in the volume of transactions and the participation of southern investors reflects the growing role of these connections in the regional capital dynamics.
With information from Global Times
Source: https://www.ocafezinho.com/2025/04/29/goldman-sachs-eleva-previsao-de-fluxos-de-capital-para-acoes-de-hong-kong-em-2025/
