Northbound funds | Northbound trading saw a net inflow of 19.828 billion, Hong Kong stock ETFs saw further increase in positions, while CNOOC (00883) continued to be sold off.

On April 2nd, the Hong Kong stock market saw a net buying of 19.828 billion Hong Kong dollars by Northbound investors. Among them, the net buying through the Shanghai-Hong Kong Stock Connect was 11.084 billion Hong Kong dollars, and through the Shenzhen-Hong Kong Stock Connect was 8.744 billion Hong Kong dollars. The top three stocks with the highest net buying by Northbound investors were TRACKER FUND OF HONG KONG (02800), Hang Seng H-Share Index ETF (02828), and XIAOMI-W (01810). The top three stocks with the highest net selling by Northbound investors were CNOOC (00883), BABA-W (09988), and YOFC (06869). The most active stocks traded through the Shanghai-Hong Kong Stock Connect. The most active stocks traded through the Shenzhen-Hong Kong Stock Connect. Northbound investors increased their holdings in Hong Kong ETFs, TRACKER FUND OF HONG KONG (02800) and Hang Seng H-Share Index ETF (02828) received net buying of 8.546 billion and 2.593 billion Hong Kong dollars respectively. In terms of news, BOCOM INTL believes that the main disturbance to the Hong Kong stock market in March did not come from the fundamentals, but from geopolitical uncertainties in the Middle East. If conflicts do not escalate further in April, the accumulated risk premium may gradually be released, providing room for market valuation repair. The upcoming meeting between the US and China leaders will be a key focus for Hong Kong stock market sentiment. The technical pressure from annual reports and lifting of restrictions may gradually ease in April, allowing the Hong Kong stock market to transition from a high volatility stage to a phase of stabilization. XIAOMI-W (01810) received a net buying of 1.115 billion Hong Kong dollars. According to reports from Blue Whale Technology, it was exclusively informed by sources that Song Gang, a key figure who was in charge of leading the construction and production ramp-up of Tesla's Shanghai Super Factory, will be joining Xiaomi Automobile. On April 1st, Lei Jun revealed on Weibo that the new generation SU7 began deliveries on March 23rd, with over 7,000 units delivered in March. Tech stocks showed differentiation. Tencent (00700) received a net buying of 657 million Hong Kong dollars, while BABA-W (09988) suffered a net selling of 2.48 billion Hong Kong dollars. In terms of news, HSBC released a report stating that the AI monetization capabilities of Alibaba and Tencent are systematically underestimated. The bank believes that the market remains confident in the long-term return on capital expenditure of the two companies, as well as the sustainability of their free cash flow and balance sheet. The real concern arises from consumer AI investments leading to higher operating expenses. If they can capture a larger share of the advertising market, both companies could see their revenue rise by up to 11% by 2027. GEELY AUTO (00175) received a net buying of 427 million Hong Kong dollars. According to data released by GEELY AUTO on April 1st, its sales in the first quarter of 2026 reached a historical high of 709,358 units, with a monthly sales of 233,031 units in March, a 13% increase from the previous month. The cumulative sales of new energy vehicles reached 369,059 units with a penetration rate of 52%, which further increased to 55% in March. The cumulative overseas exports reached 203,024 units, a year-on-year growth of 126%, significantly higher than the overall sales growth. CNOOC (00883) suffered a net selling of 734 million Hong Kong dollars. President Trump's speech stated that the US military has achieved a rapid and decisive victory, and its core strategic objectives are nearing completion, further indicating extremely intense military strikes against Iran in the next two to three weeks. Ping An Securities released a research report stating that there are still risks of escalating tensions in Iran and geopolitical risks between Russia and Ukraine, with strong support around $85 per barrel for oil prices in the short term. Additionally, Shandong Molong Petroleum Machinery (00568) and Semiconductor Manufacturing International Corporation (00981) received net buying of 93.13 million and 16.74 million Hong Kong dollars respectively. YOFC (06869) suffered a net selling of 240 million Hong Kong dollars.