On February 27, mainland investors recorded a net purchase of HK$14.997 billion in the Hong Kong stock market. The Shanghai-Hong Kong Stock Connect contributed a net buy of HK$7.716 billion, while the Shenzhen-Hong Kong Stock Connect accounted for a net purchase of HK$7.281 billion.
The most heavily bought stocks by mainland capital were the Tracker Fund (02800), the Hang Seng China Enterprises Index Fund (02828), and the CSOP Hang Seng Tech Index ETF (03033). The stocks with the highest net selling were Yangtze Optical Fibre and Cable (06869), Hua Hong Semiconductor (01347), and SMIC (00981).
Mainland investors once again aggressively accumulated Hong Kong ETF positions. The Tracker Fund (02800), Hang Seng China Enterprises Index Fund (02828), and CSOP Hang Seng Tech Index ETF (03033) received net inflows of HK$8.385 billion, HK$2.482 billion, and HK$2.039 billion, respectively. Market analysis suggests that with a current lull in major macroeconomic data releases and rising policy expectations surrounding the upcoming "Two Sessions" meetings, the Renminbi is expected to continue appreciating. This environment, coupled with anticipated inflows from foreign capital, southbound investments, and insurance funds, along with upcoming listings of some industry leaders, is seen as reinforcing a potential spring rally.
TENCENT (00700) attracted a net purchase of HK$1.232 billion. Reports indicate that during the recent Spring Festival AI competition, TENCENT focused on securing its ecosystem position: its AI app "Yuanbao" reached 114 million monthly active users, with a peak daily active user count surpassing 50 million. Analysts noted that while Yuanbao did not experience a massive traffic explosion, it wisely avoided inefficient, high-cost user acquisition. The core strategy is believed to be building a network of familiar contacts as an AI asset, paving the way for the large-scale deployment of a native AI agent within the WeChat ecosystem to strengthen its competitive moat.
BABA-W (09988) received a net purchase of HK$338 million. The company's personal AI assistant, "Qianwen," is officially entering the AI hardware sector. Qianwen will launch its first AI glasses under the same name at the 2026 Mobile World Congress in Barcelona, Spain, with pre-orders starting across all channels on March 2. According to internal sources, besides AI glasses, Qianwen plans to release an AI ring and AI headphones within the year, targeting the global market.
CNOOC (00883) saw net selling of HK$90.26 million. This follows comments from Iran's Foreign Minister after the third round of indirect talks with the U.S., describing them as the most serious and longest-lasting to date. He stated that good progress was made, with both sides nearing consensus on certain issues. Analysis from Goldman Sachs suggests that the current oil price already includes a risk premium of $5 to $6 per barrel related to the potential for U.S. military action against Iran.
Hua Hong Semiconductor (01347) and SMIC (00981) experienced net selling of HK$272 million and HK$228 million, respectively. A Morgan Stanley research report highlighted that AI demand is causing significant divergence within the semiconductor sector. Upstream suppliers, such as those producing AI memory chips like HBM, are benefiting substantially. In contrast, downstream manufacturers of PCs and smartphones may face challenges in passing on increased costs.
Additionally, Xiaomi Group-W (01810) attracted a net purchase of HK$343 million. Conversely, Yangtze Optical Fibre and Cable (06869) and Junda Equity (02865) saw net selling of HK$505 million and HK$103 million, respectively.
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