Mainland Chinese investors pulled a record 24.6 billion yuan, roughly $3.7 billion, out of China-listed ETFs tracking Hong Kong equities in a single week. That’s the largest weekly withdrawal these funds have ever recorded.

The money is moving into domestic AI and semiconductor stocks on mainland exchanges.

Five weeks of bleeding, and the pace is accelerating

The record outflow caps a fifth consecutive week of net withdrawals from Hong Kong equity ETFs. Ten of the last twelve weeks have been defined by outflows. Across all of 2025, there were only 11 weeks of outflows total.

One fund in particular illustrates the severity. The ChinaAMC ETF tracking the Hang Seng Tech Index saw approximately 1 billion yuan withdrawn in a single day in early June. The Hang Seng Tech Index was actually rising that day.

Where the money is going

The destination for this capital is almost entirely domestic. Mainland-listed companies in artificial intelligence and semiconductors have become the preferred landing zone for investors rotating out of Hong Kong exposure.

Goldman Sachs adds fuel to the fire

Goldman Sachs downgraded Hong Kong H-shares on June 4. H-shares are shares of mainland Chinese companies listed on the Hong Kong Stock Exchange.

The record outflows show no obvious signs of reversing. With Goldman now formally bearish and the flow data accelerating, even positive index performance hasn’t been enough to stem the tide.