(Bloomberg) -- Chinese mainland investors increased their portion of total turnover of Hong Kong stocks to a record daily average in April, with the latest measures to bolster the city’s position potentially boosting their purchases.

The value of shares traded by mainland investors accounted for a third of the total turnover on average each day, the highest monthly ratio since Bloomberg began tracking the data in late 2016. The ratio has risen every year since 2017. 

The rising significance of mainland investors in the city’s markets comes at a time when Hong Kong shares are struggling with low liquidity. Plans to widen the scope of eligible exchange-traded funds and the inclusion of real estate investment trusts via trading links may add to the city’s appeal as an option for onshore traders to diversify their assets. 

“The latest measures will continue to drive mainland flows into Hong Kong and increase their sway in the market, benefiting the stability of prices and increasing the market’s rationality,” Guotai Junan Securities Co. analysts including Huang Kaihong wrote in a note.

The rising participation of mainland traders points to their growing influence over Hong Kong’s equities, and may help them achieve a goal they have aspired toward in recent years. While the Hang Seng Index has retreated nearly 50% from a high in 2021, southbound purchases on a net basis amounted to about HK$990 billion ($126 billion) during the period.

Chinese traders have added Hong Kong shares in all but 11 sessions so far this year, with the current 16-day streak among the longest. 

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