Hong Kong Strategy - Southbound Stock Connect: much smaller net outflow; auto-related stocks led the

■   Monthly southbound trading recorded a net fund outflow of HK$19.8bn in August, a significant reduction from the net fund outflow of HK$63.5bn in July. 

■   The average daily turnover (ADT) of southbound trading (buy and sell) was HK$40.4bn in August, a drop of 16.08% from HK$48.2bn in July.

■   By sector, the greatest focus for southbound flow (both inflow and outflow) in Aug 2021 was on the consumption, real estate and financial sectors. Interest in the financial, consumer discretionary and IT sectors was low in Aug 2021.

■   Auto-related stocks led the net inflow list in August. Geely Automobile (0175.HK) ranked at the top in terms of net fund inflows in August, with a net fund inflow of HK$9.02bn, followed by Tencent Holdings (0700.HK), BYD (1211.HK), CR Power (0836.HK) and Dongyue Group (0189.HK).

■   The top five stocks in the net fund outflow list in August were Meituan (3690.HK), Anta Sports (2020.HK), HKEx (0388.HK), Li Ning (2331.HK) and Wuxi Biologics (2269.HK). Two of them are consumption related, one is internet related, and one is financial.