HKEX Insight

Record trading activity, expanded product eligibility and growing investor participation helped Stock Connect reach new milestones in H1 2026, underscoring its increasingly important role in facilitating two-way capital flows and connecting investors with diversification opportunities.

Northbound Stock Connect average daily turnover (ADT) reached a record RMB345.3 billion in H1 2026, more than double the RMB171.3 billion recorded in H1 2025, and up 62.6% compared with ADT of RMB212.4 billion in 2025, according to HKEX data.

Southbound Stock Connect ADT reached HK$123.1 billion in H1 2026, exceeding the HK$121.1 billion full-year record set in 2025.

 

On Northbound, there was robust trading activity around A-share growth and hard-tech supply chains, including semiconductors and advanced manufacturing, with sector names displacing more established stocks in the top 10 traded stocks on Northbound during H1 2026.

Southbound trading activity was also more concentrated in technology and innovation-related sectors, including semiconductor and AI-linked names.

A new cohort of Hong Kong-listed AI and semiconductor companies, including Z.AI (formerly Knowledge Atlas), Biren Technology and Iluvatar CoreX, quickly emerged among the most actively traded Southbound securities, alongside established names such as SMIC, Kingboard and major financial institutions.

Their rapid integration into Southbound flows highlights how Hong Kong's evolving technology ecosystem is creating new opportunities for investors in the Chinese Mainland while reinforcing the city's role as a gateway to innovation and international capital.

The investible opportunity set expanded as more A-shares met Connect eligibility requirements on market capitalisation and liquidity metrics.

By the end of June 2026, the number of Northbound-eligible A-shares had increased to 3,503 from 3,258 at end-2025, with many of the new additions coming from the STAR and ChiNext markets and from sectors including technology hardware, biotech, new-energy vehicle supply chain and advanced materials. The range widened on the Southbound side as well, with 47 more Hong Kong-listed stocks and 8 more ETFs joining the channel over the period.

In its May 2026 Index Review, MSCI added several A-share technology companies to its Emerging Markets and China indices.

This was followed by the semi-annual rebalances of the CSI, CNI and STAR indices, which increased the representation of technology, healthcare and advanced manufacturing companies in the benchmarks. Together, these changes supported trading by passive and active strategies toward the end of H1 2026.

The number of Northbound-eligible ETFs rose to 365 at the end of June 2026, broadening the sector, thematic and index exposures available to international investors. ETF ADT on Northbound reached RMB4.8 billion in H1 2026, up 44.1% compared with 2025.

Southbound ETF ADT reached HK$6.2 billion by the end of June 2026, representing 6.1% of Hong Kong's ETP market ADT, while the number of Southbound-eligible ETFs increased from 23 at end-2025 to 31 following the May 2026 eligibility review.

 

 

Rising ETF activity points to broader investor participation, with strong demand reported from retail and wealth-management investors seeking diversified exposure through listed products.

As the eligible universe expanded, Stock Connect offered access to a wider range of domestic and international opportunities.

New additions included '60/40' ETFs, which combine Hong Kong equities with up to 40% international exposure. By end-June 2026, seven Southbound-eligible products offered exposure to US and Korean technology, AI and global income strategies.

In sum, Stock Connect set new records in the first half of 2026, supported by strong investor participation, expanded product eligibility and growing ETF adoption.

Building on this progress, HKEX will continue working with partners and stakeholders to enhance the broader Connect ecosystem, creating more opportunities for investors and issuers and deepening cross-border capital market connectivity linking the Chinese Mainland, Hong Kong and the world.