On March 30, mainland capital recorded a net sell-off of HK$2.467 billion in the Hong Kong stock market. Specifically, the Shanghai-Hong Kong Stock Connect saw net purchases of HK$1.667 billion, while the Shenzhen-Hong Kong Stock Connect registered net sales of HK$4.134 billion.
TENCENT (00700), XUNCE (03317), and AKESO (09926) were the top recipients of net buying from mainland investors. Conversely, the Tracker Fund (02800), the CSOP Hang Seng Tech ETF (03033), and the Hang Seng H-Share Index ETF (02828) experienced the largest net outflows.
TENCENT (00700) attracted net purchases of HK$608 million. The company resumed its share buyback program starting March 26, conducting repurchases on both March 26 and 27. However, the daily average repurchase amount has been reduced to approximately HK$300 million, roughly half the daily average of HK$635 million seen in January. TENCENT had previously indicated plans to scale back buybacks this year, redirecting capital toward high-return investment opportunities.
XUNCE (03317) received net inflows of HK$104 million. The company reported annual revenue of RMB 1.285 billion, a 103.28% year-on-year increase, surpassing the RMB 10 billion revenue milestone. This growth was driven by strong enterprise demand for real-time data, fueled by the rapid adoption of AI large language models. Its adjusted net loss narrowed significantly by 33.41%, with the second half achieving an adjusted net profit of RMB 50.13 million, marking its first half-year profit and confirming an earnings turnaround.
Shandong Molong Petroleum (00568) and CNOOC (00883) saw net sell-offs of HK$5.09 million and HK$70.64 million, respectively. This followed remarks from former U.S. President Donald Trump indicating that Iran had agreed to allow 20 oil tankers passage through the Strait of Hormuz, signaling willingness to engage in negotiations. Trump stated that the U.S. is conducting both direct and indirect talks with Iran.
SMIC (00981) faced net selling of HK$498 million. Market data showed significant price reductions for DDR5 memory modules at several U.S. retailers, with some kits discounted by up to $100. Investors interpreted this as a sign that AI-related hardware shortages may ease substantially, reducing memory demand. However, HSBC argued that market concerns are overblown, suggesting the AI-driven memory super-cycle is only at its midpoint, with strong demand for high-end products like HBM likely prolonging shortages for one to two years.
Mainland investors heavily sold Hong Kong-listed ETFs. The Tracker Fund (02800), CSOP Hang Seng Tech ETF (03033), and Hang Seng H-Share Index ETF (02828) saw net outflows of HK$3.845 billion, HK$1.338 billion, and HK$1.183 billion, respectively. Analysts at China Securities believe the Hong Kong market remains in a bull phase, currently undergoing a temporary adjustment. They expect the market to resume its upward trajectory once external pressures subside, with the rally shifting from valuation-driven to earnings-driven growth, highlighting structural investment opportunities.
Additionally, AKESO (09926) attracted net buying of HK$74.9 million, while Yangtze Optical Fibre and Cable (06869) and Alibaba-W (09988) saw net selling of HK$360 million and HK$874 million, respectively.
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