Northbound Capital Trends | Northbound capital net purchases amounted to HKD 26.212 billion, with Northbound capital re-accumulating Hong Kong stock ETFs, and the entire day’s purchases of the Tracker Fund exceeded HKD 8.2 billion

According to Zhitong Finance APP, on March 12th in the Hong Kong stock market, northbound capital had a net purchase of HKD 26.212 billion, with the Shanghai-Hong Kong Stock Connect having a net purchase of HKD 16.242 billion and the Shenzhen-Hong Kong Stock Connect having a net purchase of HKD 9.97 billion.

The stocks with the highest net purchases from northbound capital are Tracker Fund of Hong Kong (02800), Xiaomi Group-W (01810), and Hang Seng China Enterprises (02828). The stock with the highest net sell from northbound capital is XPeng-W (09868).

Active trading stocks in Shanghai-Hong Kong Stock Connect

Active trading stocks in Shenzhen-Hong Kong Stock Connect

Northbound capital has resumed increasing positions in Hong Kong stock ETFs, with Tracker Fund of Hong Kong (02800) and Hang Seng China Enterprises (02828) receiving net purchases of HKD 8.277 billion and HKD 1.38 billion, respectively. On the news front, CICC pointed out that the pricing of Hong Kong stocks depends on long-term earnings prospects, and if earnings are realized, related stocks may even see a situation where prices rise while valuations decrease. CMB International believes that the spillover risks brought by the adjustment of US stocks also need to be vigilant. As the policy environment temporarily enters a calm period, the market's pricing of risks such as Trump's tariffs remains relatively insufficient amid external disturbances. Meanwhile, Hong Kong stocks have been continuously in the overbought range recently, facing pressure for a phase adjustment.

Tencent (00700) received a net purchase of HKD 1.342 billion. On the news front, Morgan Stanley stated that the domestic AI Agent product Manus has sparked a wave, and public cloud service providers are expected to benefit from this, positively impacting Tencent. Huachuang Securities believes that Tencent itself possesses one of the strongest internet scenarios with its core applications WeChat and QQ, and this round of open-source large models like DeepSeek is expected to significantly improve foundational model capabilities. They are optimistic about the top-down push for AI transformation products in 2025, which will bring user experience innovations and open up incremental commercialization space, driving valuation increases.

Alibaba-W (09988) received a net purchase of HKD 1.157 billion. On the news front, the Manus platform announced on March 11th that it will officially reach a strategic cooperation with Alibaba Tongyi Qianwen team. The two parties will realize all functions of Manus based on the Tongyi Qianwen series of open-source models on domestic models and computing power platforms In response, Alibaba Tongyi stated that Manus and Tongyi Qianwen are indeed collaborating on open-source models, and they look forward to working with more global AI innovators.

China Mobile (00941) received a net purchase of HKD 930 million. According to news, UBS previously stated that telecom operators are beneficiaries of the surge in AI capital expenditures and demand. Among the three major Chinese telecom companies, China Telecom has the highest service revenue exposure in cloud and data centers, accounting for 20%, while China Mobile and Unicom account for 12% to 13%. The firm believes that the risk of rising capital expenditures in telecom stocks is controllable, with China Mobile having the highest 5G capital expenditure mix, and it is believed that its capital expenditure or free cash flow will be the most defensive under the growth of AI capital expenditures.

Kuaishou-W (01024) received a net purchase of HKD 540 million. According to news, Citigroup previously released a research report stating that Kuaishou's stock price rose more than 13% last Thursday. The firm believes it could benefit from the Chinese government's commitment to support artificial intelligence in this year's work report, along with central officials mentioning the "Keling large model" at a press conference. Huazhang Securities pointed out that Keling AI and other video generation large models have broad application space in the advertising demand sector; an increase in advertising supply will bring higher revenue to advertising platforms, achieving both volume and price increases.

SMIC (00981) received a net purchase of HKD 404 million. According to news, Tianfeng Securities believes that semiconductor self-control is an important direction for the technology market, emphasizing the urgent demand for domestic semiconductor substitution, the large market space, and the potential catalysts from both external and internal factors for the sector. Guotai Junan Research believes that the AI competition is intensifying, the industry is accelerating development, and chip manufacturing is currently the main bottleneck for China's AI industry, which is expected to gradually break through as the industrial chain matures.

Suteng Juchuang (02498) received a net purchase of HKD 226 million. According to reports, Mercedes-Benz plans to develop smart driving cars for the global market, which will be equipped with Hesai Technology's lidar sensors. This will be the first time a foreign car manufacturer applies Chinese-made lidar technology to globally sold models. It is reported that Suteng Juchuang's supply will account for 80% of the lidar used in BYD's mid-to-high-end solutions. As of November 29, 2024, Suteng Juchuang has successfully obtained mass production orders for 92 models from 28 automotive manufacturers and first-tier suppliers.

In addition, Xiaomi Group-W (01810) and Meituan-W (03690) received net purchases of HKD 1.694 billion and HKD 19.22 million, respectively. Meanwhile, XPeng Motors-W (09868) faced a net sell-off of HKD 255 million