Actual GDP in Q1 2026 rebounded to 5%, Stock Connect (for Hong Kong) saw a net inflow of 4.291 billion yuan on Thursday.

Market Commentary

In Q1 2026, actual GDP rebounded to 5%, breaking the five consecutive quarters of sluggishness. The most noteworthy signal for the market is the significant rebound in nominal GDP growth to 4.9%, with the gap between it and actual GDP narrowing substantially. The report estimates that nominal GDP in Q2 will reach 5.9%, not only marking a consecutive rebound in growth but also surpassing actual GDP for the first time in 13 quarters. This indicates strong upward momentum in the price side (PPI), and corporate profits are at a turning point for accelerated improvement.

The Stock Connect (for Hong Kong) saw a net inflow of 4.291 billion yuan on Thursday, with the $TRACKER FUND(02800.HK) receiving the largest inflow, reaching 2.683 billion HKD; followed by $BABA-W(09988.HK) . $XIAOMI-W(01810.HK)  recorded the largest net outflow, at 1.151 billion HKD; followed by Tencent Holdings (00700.HK).

Source: KGI Securities