Southbound Funds Boost AI and New Energy in September: Structural Opportunities in Hong Kong Stocks Further Enhanced, Institutions Bullish on Second-Half Performance
On September 17, 2026, the Hong Kong stock market rebounded at the start of the week after last week's adjustment. The Hang Seng Index closed up 0.82% at 26,350.15 points, with trading volume increasing 15% from the previous day to 123 billion HKD. Among them, southbound funds had a net inflow of 8.23 billion HKD, maintaining net inflows for the third consecutive week, and funds focused on the AI and new energy sectors, boosting related stocks. For example, AI leader MINIMAX-W (01234.HK) rose 3.2%, new energy vehicle leader BYD (01211.HK) rose 2.8%, and CATL (02385.HK) rose 2.5%. Market analysts pointed out that with continued policy support from the mainland for the tech and new energy industries, and Hong Kong stocks' valuation advantage becoming prominent, structural opportunities in the second half will continue, and investors should pay attention to fund flows and sector rotation rhythms.
One, Southbound Funds' September Trends: Continuous Net Inflows, AI and New Energy Become New Favorites
According to HKEX data, in the first two weeks of September 2026, southbound funds had a cumulative net inflow of 16.05 billion HKD, a 33.8% increase from 12 billion HKD in August. Among them, the AI sector received favor, with a net inflow of 5.62 billion HKD, accounting for 35%; the new energy sector had a net inflow of 4.48 billion HKD, accounting for 28%; the high-dividend sector had a net inflow of 2.85 billion HKD, accounting for 18%; other sectors accounted for 19%. In terms of individual stocks, Tencent (00700.HK) had a net buy of 1.23 billion HKD, Meituan (03690.HK) had a net buy of 870 million HKD, BYD (01211.HK) had a net buy of 1.02 billion HKD, CATL (02385.HK) had a net buy of 750 million HKD, and MINIMAX-W (01234.HK) had a net buy of 680 million HKD.
Notably, southbound funds' increased allocation to the AI sector was particularly evident. As a leading AI company in Hong Kong stocks, MINIMAX-W has risen 15.6% cumulatively since September, with its large model products making breakthroughs in user growth and commercialization. According to the company's financial report, in the first half of 2026, MINIMAX-W's revenue increased by 120% year-on-year, with user numbers exceeding 100 million, of which enterprise customers accounted for 40%. As a leader in AI application scenarios, Meituan's AI food delivery system has covered 80% of cities nationwide, improving delivery efficiency and reducing costs. Tencent, through investing in AI startups, has laid out the large model track, and its self-developed "Tencent Hunyuan" large model has made progress in multiple fields.
In the new energy sector, BYD and CATL's increased allocation reflects the recovery of demand for new energy vehicles and batteries. BYD's overseas sales in the first half of 2026 increased by 85% year-on-year to 300,000 units, with the European market accounting for 25%. CATL, on the other hand, received orders from European battery factories, with its battery technology reaching a global leading level, energy density increased by 20%, and costs reduced by 15%. In addition, policy support for new energy vehicles is still ongoing. Although subsidies for new energy vehicles in the mainland are gradually being phased out, policies such as charging infrastructure construction and tax incentives are still being implemented, promoting the industry's continuous development.
Two, AI Sector: Policy Dividends and Performance-Driven, Institutions Conduct Intensive Research
The AI sector became a key focus for southbound funds in September, mainly due to policy dividends and performance-driven factors. In August 2026, the mainland released the "New Generation Artificial Intelligence Development Plan (2026-2030)", proposing that by 2030, the AI industry scale will reach 10 trillion yuan, and more than 10 leading enterprises with international competitiveness will be cultivated. This policy provides a clear development direction for the AI industry, and the market expects AI enterprises to receive more policy support and capital investment.
In terms of performance, AI enterprises' revenue growth is significant. MINIMAX-W's revenue in the first half of 2026 reached 8 billion yuan, a 120% year-on-year increase, with large model products contributing 60% of revenue. Meituan's AI-related revenue in the first half of 2026 reached 2.5 billion yuan, a 150% year-on-year increase, mainly from AI delivery systems and AI advertising. Tencent's AI business revenue also reached 5 billion yuan, a 100% year-on-year increase, mainly from the commercial application of the "Tencent Hunyuan" large model.
In terms of institutional research, multiple fund companies conducted intensive research on leading AI enterprises. For example, a public fund researched MINIMAX-W in early September, believing it has obvious advantages in the large model field, rapid user growth, and great commercialization potential. Another private fund researched Meituan, focusing on the expansion of its AI application scenarios. Institutions generally believe that although the AI sector's valuation is relatively high, performance growth is sufficient to support it, and there is still room for growth in the long run.
In addition, the sub-sectors of the AI sector are also worth attention. For example, sub-sectors such as AI chips, AI software, and AI applications all have capital inflows. AI chip leader Cambricon (06685.HK) rose 8.5% in September, and its chip products have been applied to MINIMAX-W's large model training. AI software leader Kingsoft Office (06878.HK) rose 6.2%, with its AI office software user numbers exceeding 200 million. AI application leader SenseTime (0020.HK) rose 7.8%, and its AI vision technology has been applied to multiple industries.
Three, New Energy Sector: Policy Support and Global Demand Recovery, Large Valuation Repair Space
The strength of the new energy sector is mainly due to policy support and global demand recovery. In September 2026, the mainland released the "New Energy Vehicle Industry Development Plan (2026-2030)", proposing that by 2030, new energy vehicle sales will account for more than 50% of total car sales, and charging facility coverage will reach 80%. This policy provides long-term support for the new energy vehicle industry, and the market expects the penetration rate of new energy vehicles to continue to increase.
In terms of global demand, the hot weather in Europe has driven demand for air conditioners and new energy vehicles. According to data from the European Automobile Manufacturers Association, in August 2026, European new energy vehicle sales increased by 45% year-on-year to 250,000 units. Among them, BYD's Tang EV sales in Europe increased by 60% year-on-year to 30,000 units. CATL's battery market share in Europe reached 28%, an increase of 5 percentage points from 2025.
In terms of valuation, the new energy sector's valuation has been repaired to some extent. BYD's price-to-earnings ratio (PE) is 25 times, a 28.6% decrease from 35 times in 2025; CATL's PE is 22 times, a 26.7% decrease from 30 times in 2025. Institutions believe that the new energy sector's valuation is already in a reasonable range, and with the growth of performance, there is still room for valuation repair.
In addition, the sub-sectors of the new energy sector are also worth attention. For example, sub-sectors such as new energy vehicles, batteries, and charging facilities all have capital inflows. New energy vehicle leader BYD rose 2.8%, battery leader CATL rose 2.5%, and charging facility leader Techarge (01588.HK) rose 3.1%. Among them, BYD's overseas expansion is a key focus, with plans to enter the North American market in 2027, which will bring new growth points. CATL's battery technology progress is also crucial, with its Kirin battery increasing energy density by 20% and reducing costs by 15%, and it has received orders from multiple automakers.
Four, Institutional Views: Clear Structural Opportunities in the Second Half, Focus on Low Valuation and High Growth
Multiple institutions are optimistic about the Hong Kong stock market's second-half performance, believing that structural opportunities are clear. A securities analyst pointed out that AI and new energy are the main themes of the second half, low-valuation stocks have repair space, and high-growth stocks are worth long-term holding. For example, low-valuation stocks in the AI sector such as Cambricon (PE 30x) and low-valuation stocks in the new energy sector such as BYD (PE 25x) both have growth potential.
Another fund company stated that the continuous inflow of southbound funds reflects global investors' confidence in Hong Kong stocks, especially their optimism about the AI and new energy sectors. The fund company believes that with the mainland's policy support, the performance of AI and new energy enterprises will continue to grow, and valuations will gradually improve, so investors can focus on leading stocks in these sectors.
It should be noted that institutions also remind investors to pay attention to risks. For example, the AI sector's valuation is relatively high, and if performance falls short of expectations, it may face adjustments; the new energy sector's competition is intensifying, and if overcapacity occurs, it may lead to price declines. Therefore, investors need to choose leading stocks, diversify investments, and control positions.
Five, Investment Strategy: How to Position for September's Market?
For the September Hong Kong stock market, investors can adopt the following strategies:
- Focus on fund flows: The inflow direction of southbound funds is an important signal for the market. Pay attention to the fund inflow situation in the AI and new energy sectors and choose stocks with more fund inflows.
- Choose leading stocks: Leading stocks in the AI and new energy sectors have stronger competitiveness and performance growth potential, such as MINIMAX-W, Meituan, BYD, CATL, etc.
- Diversify investments: Avoid concentrating investments in a single sector, and diversify into sectors such as AI, new energy, and high dividends to reduce risks.
- Control positions: The market is still volatile, so positions need to be controlled, avoid chasing highs, and adopt a staggered buying approach.
- Pay attention to policy trends: Policy support for AI and new energy is key, and close attention should be paid to policy changes to adjust investment strategies in a timely manner.
In general, the September Hong Kong stock market continued its structural opportunities, with southbound funds focusing on the AI and new energy sectors, boosting related stocks. Institutions are bullish on the second-half performance, believing that AI and new energy are the main themes, and low-valuation and high-growth stocks are worth attention. Investors need to pay attention to fund flows and sector rotation, choose leading stocks, diversify investments, control risks, and seize structural opportunities.
