Chinese mainland investors remain heavily invested in Hong Kong equities, defying the Hang Seng Tech Index's 26% decline since October. Net purchases of onshore-listed ETFs tracking Hong Kong stocks surged to $2 billion in February, the highest since August and the second-largest monthly inflow on record. This persistent buying, across over 140 ETFs, suggests smaller mainland traders without direct Hong Kong market access are undeterred by the index's underperformance.

Their commitment will be tested by ongoing Middle East tensions and concerns about AI firms' profitability. For now, the urge to exit Hong Kong stocks appears contained, also reflected in record local inflows into Hong Kong-listed ETFs, reaching $5.9 billion in the first two months of the year. The Hang Seng Index itself is up 1.4% year-to-date.