On March 31, net purchases by northbound capital in the Hong Kong stock market totaled HK$703 million. Specifically, the Shanghai-Hong Kong Stock Connect recorded net purchases of HK$2.522 billion, while the Shenzhen-Hong Kong Stock Connect recorded net sales of HK$1.819 billion.
The stocks with the highest net purchases by northbound capital were XIAOMI-W (01810), Tencent (00700), and POP MART (09992). In contrast, the stocks with the highest net sales were the Tracker Fund (02800), CNOOC (00883), and the CSOP Hang Seng Tech ETF (03033).
XIAOMI-W (01810) received net purchases of HK$911 million. This follows announcements by the company's founder, chairman, and CEO Lei Jun, who stated that Xiaomi has allocated RMB 16 billion for R&D and capital expenditure in AI this year. Significant progress has been reported in foundational large models, embodied AI robots, and mobile AI projects. A special recruitment drive for AI talent has also been launched. President Lu Weibing further emphasized the company's commitment, announcing plans to invest RMB 60 billion in AI over the next three years.
POP MART (09992) saw net purchases of HK$89.41 million. Morgan Stanley commented that concerns over rising inventory, pressure on overseas margins, and disputes related to new business ventures may be overstated. The bank noted that 40-45% of overseas SG&A costs are variable and tied to sales, limiting potential losses. Products do not face expiration or seasonal clearance pressures. The bank highlighted that the company's theme park and upcoming animated short film are the new ventures worth monitoring.
Changfei Optical Fiber & Cable (06869) received net purchases of HK$75.31 million. Galaxy Securities previously pointed out that demand in the optical fiber and cable industry is growing significantly, with substantial price increases observed. Instances of failed or repriced centralized procurement bids by telecom operators reflect a broader market trend of rising prices. A recent emergency procurement project, characterized by its short cycle, along with a previously suspended tender, suggests that supply shortages in the sector may be becoming widespread.
Meituan-W (03690) attracted net purchases of HK$74.76 million. Goldman Sachs issued a report stating that Meituan's Q4 2025 results were largely in line with prior guidance. The bank expressed confidence in Meituan's overall leadership in the rapidly growing local services market, particularly as instant retail expands the total addressable market. Citigroup noted that strong statements from the State Administration for Market Regulation on March 25 might signal a normalization of competition in the food delivery sector, with expectations for a significant reduction in subsidies in the coming months.
Oil stocks continued to be sold off. Shandong Molong (00568) and CNOOC (00883) saw net sales of HK$54.79 million and HK$1.282 billion, respectively. Reports indicated that former US President Trump informed aides of his willingness to end US military action against Iran, even if the Strait of Hormuz remains closed. China Securities (CSC) released a report suggesting that the Strait of Hormuz remains a core factor for marginal oil price fluctuations. Short-term oil prices have not yet fully priced in a potential closure of the strait; a prolonged shutdown could drive prices higher. Even if the strait reopens, the associated risk premium is likely to be embedded in oil prices long-term, keeping them at elevated levels.
Hong Kong ETF products also faced selling pressure. The Tracker Fund (02800) and the CSOP Hang Seng Tech ETF (03033) experienced net sales of HK$2.98 billion and HK$760 million, respectively. Industrial Securities believes that while the short-term trajectory of geopolitical conflicts is difficult to predict, causing Hong Kong stocks to experience "follow-on" volatility due to external disturbances, the market has already priced in pessimistic expectations. With easing pressure on earnings revisions and potential mid-term US-Iran negotiations, the bank is not overly pessimistic about Hong Kong stocks. It suggests that the risk-reward ratio for both long and short positions may currently be unattractive, making a "wait-and-see" approach optimal. A panic sell-off triggered by unexpected US military action could present a genuine opportunity for tactical allocation or a rebound from oversold conditions.
Additionally, Tencent (00883) and Xunce (03317) received net purchases of HK$431 million and HK$64.28 million, respectively. Conversely, SMIC (00981) and Alibaba-W (09988) saw net sales of HK$438 million and HK$327 million.
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