(Bloomberg) -- Suddenly, Hong Kong stocks are hot again with Chinese investors on a buying spree. 

The benchmark Hang Seng Index has gained more than 6% this week, set for its best performance since December 2022. Mainland investors have bought stocks on a net basis for 19 straight sessions via the trading links with Hong Kong.  

The rush of inflows is turning equity gauges in Hong Kong into the world’s best-performing major indexes in April, after months of underperformance when they were among the worst. Investors are acting ahead of a pledge by China’s securities regulator to boost liquidity, with BNP Paribas saying that Chinese traders may also be seeking to diversify out of a weakening yuan. 

“Southbound flows and regional inflows to Hong Kong are supporting Hong Kong equities and could remain strong,” said Marvin Chen, a strategist at Bloomberg Intelligence. “Southbound buying tends to pick up when CNY depreciation expectations rise.” 

A better earnings outlook has also supported the optimism. Tech bellwether Tencent Holdings Ltd.’s shares outperformed the Magnificent Seven this month after an earlier-than-expected blockbuster game debut. 

Chinese investors have bought more than HK$73 billion ($9.3 billion) worth of stocks via the southbound trading links in April, according to data compiled by Bloomberg. 

The Hang Seng China Enterprises Index, which tracks mainland companies, has also gained more than 6% this week.

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