China mainland investors bought the most Hong Kong shares in over two years

The Hang Seng is up around 1% today, Tuesday, 6 June 2023.

Bloomberg carry a report with the info:

• A net HK$10.9 billion ($1.53 billion) of shares were purchased by onshore investors, the biggest daily flow since February 2021, following three straight days of net selling.

The mainland buyers had come in via trading links with the city on Monday.

Bloomberg graph of the inflow to HK:

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What are these 'trading links'?

Shanghai-Hong Kong Stock Connect is one:

• a mutual market access program through which investors in each market can trade shares on the other market directly
• launched in 2014
• Northbound Trading allows international and Hong Kong investors to trade eligible shares listed on the Shanghai Stock Exchange Stock Exchange A stock exchange, or securities exchange is defined as a facility where stockbrokers and traders can buy and sell securities.This includes shares of company stocks, bonds, exchange-traded funds (ETFs), or other financial instruments. Stock exchanges can also provide facilities for the issue and redemption of such securities and instruments and capital events. This commonly includes the payment of income and dividendsStock exchanges have developed into a permanent fixture in the financial market A stock exchange, or securities exchange is defined as a facility where stockbrokers and traders can buy and sell securities.This includes shares of company stocks, bonds, exchange-traded funds (ETFs), or other financial instruments. Stock exchanges can also provide facilities for the issue and redemption of such securities and instruments and capital events. This commonly includes the payment of income and dividendsStock exchanges have developed into a permanent fixture in the financial market Read this Term via the Hong Kong Stock Exchange.
• Southbound Trading allows mainland Chinese investors to trade eligible shares listed on the Hong Kong Stock Exchange via the Shanghai Stock Exchange.
• The Shanghai-Hong Kong Stock Connect allows foreign investors to access China's A-shares market (shares in mainland China-based companies that were previously difficult for foreign investors to access) and it allows mainland Chinese investors to access the Hong Kong market.

In addition to the Shanghai-Hong Kong Stock Connect, there is also the Shenzhen-Hong Kong Stock Connect

• launched in 2016
• links Shenzhen Stock Exchange with the Hong Kong Stock Exchange in a similar way