On January 28, the Hong Kong stock market saw net selling of HK$3.427 billion by northbound capital. Specifically, the Shanghai-Hong Kong Stock Connect recorded a net selloff of HK$4.772 billion, while the Shenzhen-Hong Kong Stock Connect registered net buying of HK$1.345 billion. The stocks receiving the most substantial net buying from northbound capital were TENCENT (00700), POP MART (09992), and YOFC (06869). Conversely, the Tracker Fund (02800), BABA-W (09988), and ZIJIN MINING (02899) faced the heaviest net selling pressure. TENCENT (00700) attracted net buying of HK$1.209 billion. This follows the company's January 25 announcement that its AI application, Yuanbao, will launch a Spring Festival red envelope campaign on February 1, distributing up to 1 billion yuan in cash rewards to users. At the Tencent annual meeting on January 26, CEO Ma Huateng highlighted the event, expressing hope that it would "recreate the spectacular scene of the WeChat red envelope phenomenon." Additionally, fueled by the campaign and the launch of its new "Pai" feature, Yuanbao has rapidly climbed the rankings in major app stores. POP MART (09992) garnered net buying of HK$733 million. Reports indicate that the company is planning a new overseas expansion, entering North American outlet malls and large shopping centers through a partnership with U.S. commercial real estate giant Simon Property Group, with plans to open new stores in over 20 shopping centers across the U.S. Furthermore, Citi anticipates that breakthroughs in POP MART's IP diversification, product innovation, and multi-domain monetization capabilities will support its growth momentum through 2026. YOFC (06869) received net buying of HK$297 million. In a move to accelerate AI data center construction, Meta has signed a long-term supply agreement with Corning, committing to purchase up to $6 billion worth of optical fiber cables by 2030. Corning is aggressively expanding its production capacity, and its new factory is set to become the world's largest optical fiber cable production base upon operation. YOFC is recognized as a global leader in the fiber optic cable industry, consistently maintaining the top global position in the production and sales volume of optical fiber preforms, optical fibers, and cables. CNOOC (00883) attracted net buying of HK$285 million. This comes as the U.S. Central Command, responsible for American military operations in the Middle East, announced on January 27 that its Ninth Air Force will conduct a multi-day air combat readiness exercise. Separately, Iranian officials stated they are conducting real-time monitoring of the Strait of Hormuz. Huatai Securities noted in a report that geopolitical risk premiums have already led to a rebound in oil prices during the off-season, and with recovering demand and global strategic inventory building, oil prices are expected to bottom out and rise in Q2-Q3 2026. Kingsoft Cloud (03896) saw net buying of HK$164 million. Recently, AWS increased the price of its EC2 machine learning capacity blocks by approximately 15%, while Google Cloud simultaneously raised prices for multi-modal data transfers, with rates in North America doubling. Kaiyuan Securities released a report stating that AWS and Google have fired the "first shot" in cloud price hikes, which domestic cloud providers are expected to follow. It also noted that the rising attention on Clawdbot suggests general-purpose AI agents could drive a significant surge in computing demand. CloudMinds (09678) received net buying of HK$74.44 million. The company announced that it expects total revenue from its large language model-related business for the fiscal year ending December 31, 2025, to be between approximately 600 million and 620 million yuan. This represents a staggering year-on-year increase of approximately 1057% to 1095% compared to the 51.87 million yuan in LLM-related revenue recorded for the year ending December 31, 2024. Semiconductor stocks showed divergence. HUA HONG SEMI (01347) attracted net buying of HK$45.28 million, while SMIC (00981) experienced net selling of HK$379 million. On January 28, NVIDIA CEO Jensen Huang was seen at the company's Shenzhen office. Reports indicate that during his China tour, Huang visited Shanghai, Beijing, and Shenzhen, participating in New Year events hosted by the local branches and engaging in appreciation activities for core suppliers. Furthermore, rumors emerged today suggesting that China has approved the first imports of NVIDIA's H200 AI chips. The Tracker Fund (02800) faced substantial net selling of HK$2.316 billion. This occurred as former President Donald Trump stated he was "not worried" about a declining U.S. dollar, claiming it is "doing quite well," which further intensified market bearishness towards the currency. The Bloomberg Dollar Spot Index plummeted nearly 3% over the four trading days ending Tuesday, hitting its lowest level in nearly four years. Dongwu Securities believes the market is relatively underestimating overseas risks; overseas investors remain cautious regarding U.S. AI tech earnings reports; the firm holds a more conservative outlook on Fed rate cuts; and the market is relatively underestimating the potential impact of "Trumpism." Additionally, China Mobile (00941), ZIJIN MINING (02899), and BABA-W (09988) saw net selling of HK$748 million, HK$854 million, and HK$944 million, respectively.
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