Southbound funds have maintained a steady flow of net purchases into Hong Kong stocks, amassing HK$820.028 billion in the first seven months of this year. This figure not only surpasses the total for the entire year of 2023 but also sets a new record for the same period in history. The primary sectors attracting these funds include internet, pharmaceuticals, banking, and insurance, which have significantly enhanced the liquidity of Hong Kong stocks and contributed to a narrowing of the AH premium. Consequently, the Hang Seng Index has witnessed notable gains this year, underscoring the growing influence of southbound funds on the Hong Kong stock market.