(Yicai Global) Oct. 25 -- The net value of funds on the Shanghai-Hong Kong Stock Connect and Shenzhen-Hong Kong Stock Connect has increased dramatically since the beginning of the fourth quarter, with the maximum rate of return for the year now above 56 percent, statistics from financial information provider East Money show.
This rapid growth is attributable to the influx of funds, which has reached an overall net value of almost HKD237 billion (USD30.37 billion).
Shanghai-Hong Kong Stock Connect has received about HKD161.1 billion in net inflows, while Shenzhen-Hong Kong Stock Connect has taken around HKD75.8 billion.
High rates of return are attracting more funds, which could see Hong Kong stocks maintain their upward momentum.
The Hang Seng Index, which is market cap-weighted, surged by nearly 30 percent accumulatively this year, led by the real estate, automobile, insurance, and semiconductor sectors.
The East Red Hong Rui Hua Shanghai-Hong Kong-Shenzhen Hybrid Fund and East Red Shanghai-Hong Kong-Shenzhen Hybrid Fund have increased 56.12 percent and 55.15 percent this year, respectively, ranking first and second among all stock-leaning funds.
A number of Shanghai-Hong Kong-Shenzhen funds have risen rapidly, with rates of return closing in on 50 percent.
Insurance and privately-offered funds are also flowing into the Hong Kong stock market in addition to publicly offered ones, Shanghai Securities News quoted multiple insiders as saying.