On March 17, the Hong Kong stock market saw a net sell-off of HK$11.48 billion through the Northbound Stock Connect. Specifically, the Shanghai-Hong Kong Stock Connect recorded a net outflow of HK$5.901 billion, while the Shenzhen-Hong Kong Stock Connect saw a net outflow of HK$5.58 billion.
The top stocks receiving net buys were Bright Smart (01428), Xiaomi Corporation-W (01810), and Alibaba-W (09988). Conversely, the top net sells were the Tracker Fund (02800), the Hang Seng China Enterprises Index Fund (02828), and Yangtze Optical Fibre and Cable (06869).
Bright Smart (01428) attracted net purchases totaling HK$1.226 billion. This follows the company's announcement on the evening of March 16 that Ant Group's proposed acquisition has received approval from relevant Chinese authorities, with completion expected on March 30. This marks the clearance of the most critical step in the transaction. Industry observers note that the acquisition will provide Ant Group with comprehensive securities business licenses in Hong Kong, filling gaps in its qualifications for cross-border finance, particularly in securities trading and asset management.
Xiaomi Corporation-W (01810) received net buys of HK$301 million. The company recently confirmed it will hold a spring product launch event on the evening of March 19, 2025, where the highly anticipated new generation Xiaomi SU7 electric vehicle will be a key highlight. Market analysis suggests the SU7's entry could reshape the competitive landscape of the electric vehicle market in the 250,000 to 300,000 yuan price segment.
Alibaba-W (09988) saw net inflows of HK$298 million. The company made a significant announcement regarding the establishment of a new "Token Business Group," with the "Wukong Division" making its first appearance. Morgan Stanley views the creation of this business group as indicative of potential for further valuation upside for Alibaba in the future, identifying the company as a top pick among "China's AI winners." Their current SOTP valuation for Alibaba stands at $345 per share, which includes a $19 per share valuation assigned specifically to the Qianwen Division.
CNOOC (00883) garnered net purchases of HK$197 million. The geopolitical situation involving Iran shows no signs of easing. UBS analysts believe that at the current rate of inventory drawdowns, global oil inventories could fall to the lower third of their historical range by the end of March and reach record lows by the end of April. This could push Brent crude prices above $150 per barrel, with further upside risks.
Northbound capital continued to sell Hong Kong ETF products. The Tracker Fund (02800), the Hang Seng China Enterprises Index Fund (02828), and the CSOP Hang Seng Tech Index ETF (03033) saw net outflows of HK$8.82 billion, HK$1.822 billion, and HK$457 million, respectively. Analysts at Guoyuan International suggest that while the Hong Kong market may still face volatility from external uncertainties, the peak intensity of military conflicts may have passed. Consequently, market sensitivity to warfare could diminish, while reactivity to improvements in shipping security through the Strait of Hormuz may increase, potentially paving the way for a market rebound in the near future.
Yangtze Optical Fibre and Cable (06869) experienced net selling of HK$704 million. During the GTC 2026 conference, NVIDIA CEO Jensen Huang stated that "copper remains important," noting that optics will be used for scaling in different dimensions and that both are essential capabilities. He had previously emphasized last year that silicon photonics technology still requires several years for full implementation and that copper technology should be utilized as much as possible. These remarks have tempered market expectations regarding the immediate replacement of copper by optical solutions.
Additionally, Shandong Molong (00568), SMIC (00981), and Tencent (00700) saw net outflows of HK$21.17 million, HK$175 million, and HK$633 million, respectively.
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