February 19, Wednesday

High-Level Voices:
The National Development and Reform Commission stated that China will further remove market access barriers.

Overall Sentiment:
The market mood is still surging due to the conference. Yesterday, southbound funds net bought Hk$22.4 billion, with mainland funds rushing to increase their holdings in Hong Kong stocks. The last time this was so frenzied was at the beginning of
2023. However, northbound funds have been very calm; after withdrawing from Hong Kong stocks on Monday, they clearly started reducing their holdings in A-shares yesterday. The sectors that fell sharply in A-shares were those heavily invested in by northbound funds.
Overall, Chinese capital seems to view this conference as a turning point in the market trend, while foreign capital is treating it more as a rebound.