Chinese mainland investors turned net sellers of Hong Kong stocks for the first time in nearly three years in May, after a surge in tech shares trading onshore eroded the appeal of the city’s market.

China’s battered consumer-focused funds are showing signs of pivoting to tech as a prolonged demand slump forces even the sector’s most committed backers to rethink their strategy.

China’s efforts to control capital outflows are colliding with growing demand from mainland investors for access to overseas stocks.