On March 20, mainland investors recorded a net sell-off of HK$21.005 billion in the Hong Kong stock market. The Shanghai-Hong Kong Stock Connect registered net sales of HK$14.898 billion, while the Shenzhen-Hong Kong Stock Connect saw net sales of HK$6.107 billion.
The stocks that attracted the most net buying from mainland capital were XIAOMI-W (01810), BABA-W (09988), and TENCENT (00700). In contrast, the largest net sell-offs were seen in the Tracker Fund (02800), the CSOP Hang Seng Tech ETF (03033), and the Hang Seng H-Share Index ETF (02828).
XIAOMI-W (01810) received net purchases totaling HK$1.795 billion. The company's new SU7 model garnered 15,000 confirmed orders within just 34 minutes of launch, demonstrating strong market reception. Goldman Sachs noted that the standard and Pro versions of the SU7 offer significantly improved value and specifications, predicting that the Pro model could become the best-selling variant after the initial sales period. Additionally, founder Lei Jun reaffirmed that the company's AI-related investments will exceed RMB 16 billion this year, with cumulative investments over the next three years reaching RMB 60 billion.
BABA-W (09988) saw net buying of HK$1.656 billion. J.P. Morgan released a report indicating that while Alibaba's Q4 revenue performance was acceptable, its profit figures fell significantly short of expectations. Adjusted net profit fell 67% year-on-year to RMB 16.7 billion, which was 40% and 44% below J.P. Morgan's forecast and market consensus, respectively. The primary reason for the profit pressure was attributed to cost expansion. Goldman Sachs, however, suggested that the short-term profit reset is aimed at positioning for long-term AI-driven growth.
TENCENT (00700) attracted net purchases of HK$888 million. J.P. Morgan stated that Tencent's Q4 results are expected to bolster investor confidence. The key takeaway, according to the bank, is not only the stability of its core businesses but also the demonstrated commercial value of AI in advertising, gaming, and cloud services, alongside benefits from an improved business mix and resilient cash flow.
CNOOC (00883) received net buying of HK$521 million. Reports indicated that Saudi officials warned oil prices could surge above $180 per barrel if energy supply disruptions persist into late April, raising concerns that high prices may curb demand and trigger an economic downturn. Goldman Sachs noted that oil price risks remain skewed to the upside, both in the near term and by 2027, citing persistent large-scale supply disruptions that could keep prices elevated above $100 per barrel for an extended period.
In contrast, Yangtze Optical Fibre and Cable (06869) faced net selling of HK$170 million. Industry leader Lumentum projected that the global market potential for optical interconnection technology could grow from approximately $18 billion currently to $90 billion by 2030. Meanwhile, Yangtze Optical Fibre and Cable announced that its shareholder, Yangtze Optical Communication, plans to sell up to 1 million shares, representing 0.12% of the company's total equity, due to its own operational needs.
The Tracker Fund (02800), CSOP Hang Seng Tech ETF (03033), and Hang Seng H-Share Index ETF (02828) saw net outflows of HK$6.119 billion, HK$841 million, and HK$653 million, respectively. Escalating tensions in the Middle East have complicated monetary policy challenges, with central banks worldwide maintaining a cautious stance and holding policy rates steady. Guoyuan International previously suggested that the Hong Kong market may continue to face volatility due to external uncertainties.
Additionally, Shandong Molong (00568) and SMIC (00981) experienced net selling of HK$32.84 million and HK$315 million, respectively.
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