Northbound Capital Trends | Northbound capital recorded a net sell of HKD 6.342 billion, Alibaba received additional investment before earnings, and the Tracker Fund was sold off by Northbound capital for nearly HKD 9 billion
On February 20th, the Hong Kong stock market saw a net sell-off of HKD 6.342 billion from northbound capital, with Alibaba receiving a net buy of HKD 1.223 billion, while the Tracker Fund of Hong Kong was sold off nearly HKD 9 billion. Alibaba will announce its earnings before the US stock market opens, with UBS expecting a year-on-year revenue growth of 5.5%. China Mobile received a net buy of HKD 902 million, as the three major telecom operators helped state-owned enterprises and government clients complete the deployment of AI large models
According to Zhitong Finance APP, on February 20th in the Hong Kong stock market, northbound capital had a net sell of HKD 6.342 billion, with the Shanghai-Hong Kong Stock Connect having a net sell of HKD 211 million and the Shenzhen-Hong Kong Stock Connect having a net sell of HKD 6.131 billion.
The stocks with the highest net purchases from northbound capital are Alibaba-W (09988), CHINA MOBILE (00941), and SMIC (00981). The stocks with the highest net sells are the Tracker Fund of Hong Kong (02800), Hang Seng China Enterprises (02828), and Tencent (00700).
Active stocks in the Shanghai-Hong Kong Stock Connect
Active stocks in the Shenzhen-Hong Kong Stock Connect
Alibaba-W (09988) received a net purchase of HKD 1.223 billion. On the news front, Alibaba will announce its earnings before the US stock market opens on February 20th. UBS expects Alibaba's revenue to be RMB 274.557 billion, a year-on-year increase of 5.5% and a quarter-on-quarter increase of 16.1%. UBS stated that if the macro economy stabilizes and the competitive landscape improves, there is potential for valuation multiples to be revised upwards. Additionally, Ant Group announced that it registered Ant Lingbo Technology Co., Ltd. last year, focusing on embodied intelligence technology and product development; Ant Group continues to invest in AI.
CHINA MOBILE (00941) received a net purchase of HKD 902 million. On the news front, CITIC Securities pointed out that the three major operators are assisting state-owned enterprises and government clients in completing the full-scale DeepSeek domestic deployment, marking the beginning of the deployment of DeepSeek by state-owned enterprises and government. The operators, leveraging their comprehensive capabilities in cloud, network, and intelligent computing, have set a typical benchmark for state-owned enterprises and government agencies to deploy AI large models based on fully self-controlled hardware. They are optimistic about the acceleration of AI model deployment orders from state-owned enterprises, government, and vertical industries. Operators are expected to continuously expand their revenue boundaries and enhance profitability through intelligent computing and AI model deployment capabilities, with cloud and AI businesses facing a value reassessment.
There is a divergence in chip stocks, with SMIC (00981) receiving a net purchase of HKD 520 million, while Hua Hong Semiconductor (01347) faced a net sell of HKD 199 million. On the news front, domestic wafer foundry manufacturers have previously intensified capacity expansion. According to TrendForce, it is estimated that by the end of 2025, the share of mature process capacity of mainland wafer foundry manufacturers among the top ten players will exceed 25% as new capacity is released Morgan Stanley pointed out that Hua Hong's 8-inch mature process node faces potential pricing pressure under competition; HSBC believes that the current stock price of SMIC does not reflect pricing pressure, tariff impacts, and weak demand visibility.
Northbound funds sold off Hong Kong stock ETFs, with the Tracker Fund of Hong Kong (02800) and Hang Seng China Enterprises (02828) experiencing net sales of HKD 8.956 billion and HKD 3.104 billion, respectively. In terms of news, Zheshang International pointed out that the current "spring fever" market for Hong Kong stocks has distinct structural characteristics. Given that market optimism is still fermenting, the short-term outlook is positive for the market to continue rising. However, considering the current technical indicators show overbought conditions, and this round of market performance mainly relies on the valuation recovery of technology stocks, caution is still needed regarding short-term pullback risks. In the medium to long term, there are still many concerns in the market, especially as the domestic economic fundamentals remain under pressure. It is expected that after this round of valuation recovery, the market will still be dominated by a volatile trend.
In addition, UBTECH (09880) saw a net purchase of HKD 310 million, while Tencent (00700) experienced a net sale of HKD 1.258 billion