Northbound capital recorded a net purchase of HK$3.738 billion in the Hong Kong stock market on April 21. Specifically, the Shanghai-Hong Kong Stock Connect saw net buying of HK$4.485 billion, while the Shenzhen-Hong Kong Stock Connect experienced net selling of HK$747 million. The stocks receiving the highest net purchases from northbound capital were CHINA MOBILE (00941), ICBC (01398), and CCB (00939). The stocks with the highest net selling were BABA-W (09988), YOFC (06869), and TENCENT (00700).
CHINA MOBILE (00941) attracted net buying of HK$1.066 billion. The company reported first-quarter revenue of RMB 266.5 billion, a modest year-on-year increase of 1.0%, while its core telecommunications business revenue declined by 1.1%. Net profit fell 4.2% year-on-year to RMB 29.3 billion. Revenue from other businesses surged 12.7% to RMB 46.6 billion, indicating that emerging sectors like computing power and intelligent services are becoming significant supplementary revenue sources.
Northbound capital continued to increase its holdings in Chinese bank stocks. ICBC (01398) and CCB (00939) received net purchases of HK$798 million and HK$789 million, respectively. This follows a Citigroup research report forecasting that the covered Chinese banks will see first-quarter revenue growth accelerate to 6.3% year-on-year. The report suggested banks might utilize strong revenue growth to bolster provisions, potentially resulting in profit growth lagging behind revenue growth, with an estimated first-quarter profit increase of 3.1%. Large state-owned and regional banks are expected to outperform joint-stock banks due to better loan growth and net interest margin trends.
CIG (06166) garnered net buying of HK$268 million. The company stated on an interactive platform that it focuses on silicon photonics technology for high-speed optical modules and has commenced mass shipments of 800G products and small-batch shipments of 1.6T products to key overseas clients. Huaxin Securities previously noted strong demand for 800G and 1.6T optical modules. The company is expanding production, with capacity gradually increasing at its Jiashan and Malaysian plants, and is also advancing capacity construction at its Mexican production base. By 2026, 800G modules are expected to remain the primary shipment driver, with 1.6T modules seeing significant shipments starting in the first quarter and showing an upward trend.
POP MART (09992) received net purchases of HK$185 million. The company is set to launch its first line of small household appliances in April, including categories like coolers, electric kettles, coffee machines, and hair dryers. Guosen Securities commented that the launch of IP-based small appliances could open high-frequency daily usage scenarios for the company's leading IPs, extending their value from "collection and display" to "daily companionship," while also broadening POP MART's brand audience.
CNOOC (00883) attracted net buying of HK$159 million. Citigroup suggested that if shipping disruptions in the Strait of Hormuz persist for another month, oil prices could rise to $110 per barrel. The estimated global loss of crude and refined product inventories due to conflict is projected to reach 1.3 billion barrels. The bank further stated that a two-month extension of the disruption could lead to approximately 1.7 billion barrels of production shutdowns, potentially pushing oil prices to $130 per barrel.
Following a positive profit alert, TIANQI LITHIUM (09696) opened significantly higher, but northbound capital sold into the strength, resulting in a net sell-off of HK$39.88 million for the day. The company's preliminary first-quarter 2026 results forecast a net profit between RMB 1.7 billion and RMB 2.0 billion, representing a year-on-year increase of 1530% to 1818%. Core net profit growth was even higher, estimated between 3502% and 4312%. The strong performance was primarily driven by recovering lithium prices boosting main business revenue and improved investment returns from its stake in SQM.
TENCENT (00700) and BABA-W (09988) saw net selling of HK$178 million and HK$606 million, respectively. This followed a J.P. Morgan report suggesting the market might have misinterpreted an administrative penalty issued by the State Administration for Market Regulation on April 17 targeting "ghost kitchens" as a signal of renewed tightening in China's internet regulation and a straightforward negative impact on food delivery platforms' EPS. The bank held a more positive view, distinguishing the effects on different stocks more clearly. It noted that the direct fines were manageable and operational rectification requirements were relatively limited.
WELLCELL HOLD (02940) and SMIC (00981) received net purchases of HK$167 million and HK$15.52 million, respectively. Conversely, YOFC (06869) experienced net selling of HK$196 million.
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