On March 4, the Hong Kong stock market saw a net outflow of HK$466 million from northbound capital. Specifically, the Shanghai-Hong Kong Stock Connect recorded a net outflow of HK$1.091 billion, while the Shenzhen-Hong Kong Stock Connect registered a net inflow of HK$625 million.
The top stocks receiving net purchases from northbound funds were CSOP Hang Seng Tech Index ETF (03033), Tencent (00700), and SMIC (00981). In contrast, the most heavily sold stocks were Alibaba-W (09988), CNOOC (00883), and COSCO SHIP ENGY (01138).
CSOP Hang Seng Tech Index ETF (03033) attracted net purchases of HK$944 million. Analysts at China Galaxy Securities noted that while Hong Kong stocks may continue to face short-term sentiment pressures, the medium- to long-term supporting factors remain intact. The technology sector is still viewed as a key long-term investment theme, with recent concerns over AI creating buying opportunities. The rise of China's AI capabilities is expected to boost market confidence, though a full recovery may take time.
Tencent (00700) received net purchases of HK$848 million. UBS highlighted in a research report that success in the AI field depends on integrating high-quality models, a strong user base, and extensive data. With WeChat boasting 1.4 billion users and covering diverse scenarios such as social interaction, commerce, and content, along with an active mini-program ecosystem, Tencent's unique advantages are difficult to replicate. The firm remains optimistic about Tencent's strong potential in the AI agent sector.
Oil and gas concept stocks showed significant divergence. SHANDONG MOLONG (00568) and Dazhong Utilities (01635) received net purchases of HK$66.09 million and HK$64.85 million, respectively. Meanwhile, CNOOC (00883) and COSCO SHIP ENGY (01138) saw net outflows of HK$139 million and HK$47.27 million. This movement followed remarks from former U.S. President Donald Trump, who stated that the U.S. Navy would escort oil tankers through the Strait of Hormuz if necessary. Additionally, he directed the U.S. International Development Finance Corporation to provide political risk insurance and guarantees for maritime trade in the Gulf region, particularly for energy trade, at "very reasonable prices."
Beijing Jingcheng Machinery Electric (00187) attracted net purchases of HK$39.41 million. This follows the recent release of Yunnan province's "Several Measures to Promote Green Electricity Consumption," which includes subsidies of up to 13 yuan per kilogram for eligible green hydrogen projects. CITIC Securities views this subsidy as unprecedented, significantly improving the profitability of local green hydrogen and green fuel projects. It also raises market expectations for nationwide hydrogen energy support policies, with recommendations to focus on green hydrogen-ammonia-alcohol project investors and electrolyzer manufacturers.
Alibaba-W (09988) experienced substantial net selling of HK$3.459 billion. The departure of Junyan Lin, head of Alibaba's Qwen team, was announced unexpectedly via a late-night social media post, with no details provided about his next role or successor. Internal sources described the move as sudden, with no immediate replacement named. Notably, on the evening of March 2, Lin had just led the open-sourcing of four small-scale Qwen3.5 model series.
Additionally, SMIC (00981) received net purchases of HK$260 million, while XFH Group (02473) saw net outflows of HK$25.28 million.
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