Northbound funds | Northbound trading saw a net selling of 21.05 billion, with Northbound investors adding positions in tech stocks such as Xiaomi (01810) and massively selling Hong Kong ETFs.

On March 20, the Hong Kong stock market saw a net selling of 21.05 billion Hong Kong dollars by Northbound funds. Among them, the Shanghai-Hong Kong Stock Connect had a net selling of 14.898 billion Hong Kong dollars, and the Shenzhen-Hong Kong Stock Connect had a net selling of 6.107 billion Hong Kong dollars. The stocks that received the most net buying from Northbound funds were XIAOMI-W (01810), BABA-W (09988), and Tencent (00700). The stocks that saw the most net selling were TRACKER FUND OF HONG KONG (02800), CSOP Hang Seng TECH Index ETF (03033), and Hang Seng H-Share Index ETF (02828). Active trading stocks for the Shanghai-Hong Kong Stock Connect and the Shenzhen-Hong Kong Stock Connect: XIAOMI-W (01810) received a net buying of 1.795 billion Hong Kong dollars. On the news front, Xiaomi's new SU7 model sold 15,000 units within 34 minutes of its release, showing strong performance. Goldman Sachs believes that the new SU7 Standard and Pro versions have significantly improved performance and configuration, with the Pro version expected to become the best-selling model after the initial sales period. In addition, Xiaomi's founder Lei Jun reiterated that the AI-related investment this year will exceed 16 billion yuan and reach a cumulative investment of 60 billion yuan over the next three years. BABA-W (09988) received a net buying of 1.656 billion Hong Kong dollars. According to Morgan Stanley's research report, Alibaba's fourth-quarter revenue performance was decent overall, but profit performance significantly fell short of expectations. Specifically, adjusted net profit fell by 67% year-on-year to 16.7 billion yuan, lower than Morgan Stanley's and market expectations by 40% and 44%, respectively. The core reason for the significant profit pressure is cost expansion. Goldman Sachs stated that the short-term profit reset is for the long-term AI breakthrough. Tencent (00700) received a net buying of 888 million Hong Kong dollars. According to Morgan Stanley's research report, Tencent's fourth-quarter performance is expected to make investors more positive. The bank believes that the key information in this performance is not only the main business's sound maintenance but also that AI has shown concrete commercial value in advertising, gaming, and cloud business, and the group continues to benefit from business portfolio improvement and cash flow resilience. CNOOC (00883) received a net buying of 521 million Hong Kong dollars. According to reports, Saudi officials stated that if the energy shock continues until late April, oil prices could soar above $180 per barrel, raising concerns that high oil prices could dampen demand and trigger an economic recession. Goldman Sachs stated that oil price risks remain skewed to the upside in both the near term and 2027. Multiple historic large-scale supply shocks continue to exist, highlighting the risk of oil prices remaining above $100 per barrel in the long term. YOFC (06869) saw a net selling of 170 million Hong Kong dollars. According to reports, leading optical communication company Lumentum estimates that by 2030, the global potential market size of optical interconnection technology will grow from the current approximately $18 billion to $90 billion. YOFC announced that shareholder Wuhan Yangtze Communication Industry Group intends to reduce its stake by no more than 1 million shares, representing 0.12% of the total share capital for its own operational development needs. TRACKER FUND OF HONG KONG (02800), CSOP Hang Seng TECH Index ETF (03033), and Hang Seng H-Share Index ETF (02828) saw net selling of 6.119 billion, 841 million, and 653 million Hong Kong dollars, respectively. On the news front, escalating Middle East tensions pose challenges to monetary policy. Several global central banks generally maintain a cautious attitude towards adjusting monetary policy, keeping policy rates unchanged. Guoyuan International previously believed that the Hong Kong stock market may still face disruptions caused by external uncertainties in the future. In addition, Shandong Molong Petroleum Machinery (00568) and Semiconductor Manufacturing International Corporation (000981) saw net selling of 32.84 million and 315 million Hong Kong dollars, respectively.