Northbound funds | Northbound transactions resulted in a net sell of 8.898 billion yuan, with domestic investors increasing their holdings of automotive stocks while reducing their holdings of Hong Kong Stock Exchange Traded Funds (ETFs), resulting in a net sell of over 5 billion yuan in the Tracker Fund of Hong Kong (02800).

On February 11, in the Hong Kong stock market, the net selling amount of Beishui was 8.898 billion Hong Kong dollars, with a net selling amount of 1.697 billion Hong Kong dollars for Hong Kong Stock Connect (Shanghai) and a net selling amount of 7.201 billion Hong Kong dollars for Hong Kong Stock Connect (Shenzhen). The stocks with the most net buying by Beishui are GEELY AUTO (00175), China Mobile Limited (00941), and BYD ELECTRONIC (00285). The stocks with the most net selling by Beishui are TRACKER FUND OF HONG KONG (02800), Hang Seng H-Share Index ETF (02828), and Tencent (00700). Active trading stocks in Hong Kong Stock Connect (Shanghai) and Hong Kong Stock Connect (Shenzhen) were mentioned. Beishui funds increased their holdings in automobile stocks, with XPENG-W (09868) and GEELY AUTO (00175) receiving net buying of 479 million and 73.4 million Hong Kong dollars, respectively. On the news front, BYD Company Limited held a strategic release conference on intelligent transformation, announcing a strategy of universal intelligent driving and shouting "increase quantity without increasing price." Dongguan Securities pointed out that after the continuous increase in the penetration rate of electrification, the future competition in the automobile market may focus on the penetration rate of intelligence. According to media reports, Geely will release a major AI intelligent strategy to the public in early March this year; Xiaopeng Motors stated that by the end of 2025, they will launch level 3 autonomous driving. China Mobile Limited (00941) received a net buying amount of 4.2 billion Hong Kong dollars. On the news front, China Telecom Corporation, China United Network Communications, and China Mobile Limited announced comprehensive access to DeepSeek. CITIC SEC stated that the three major operators have achieved extensive application of DeepSeek in various scenarios and products through their platforms and resources, which is expected to accelerate the growth of operator cloud computing revenue. Open Source Securities stated that the access of DeepSeek to operators is expected to increase the demand for computing power of operators, or drive the development of operator cloud computing and intelligent computing business. BYD ELECTRONIC(00285) received a net buying amount of 253 million Hong Kong dollars. On the news front, Goldman Sachs stated that due to the trend of intelligent driving and NOA of its parent company BYD COMPANY, as well as the expansion of BYD ELECTRONIC's product line, it is expected that the contribution of intelligent smartphone metal frames and automobile electronic revenues of BYD ELECTRONIC will increase from 11% in 2023 to 26%/36%/40% in the second half of 2024/2025. Lyon believes that BYD ELECTRONIC will be the main beneficiary of BYD Company Limited's smart driving upgrade strategy this year. Semiconductor Manufacturing International Corporation(00981) suffered net selling of 297 million Hong Kong dollars. On the news front, Semiconductor Manufacturing International Corporation released its performance report after hours, with operating revenue of 57.796 billion yuan in 2024, a year-on-year increase of 27.7%; net profit of 3.699 billion yuan, a year-on-year decrease of 23.3%. In the fourth quarter, operating revenue was 15.917 billion yuan, a year-on-year increase of 31.0%; net profit was 992 million yuan, a year-on-year decrease of 13.5%. Semiconductor Manufacturing International Corporation expects a quarter-on-quarter revenue growth of 6% to 8% and a gross profit margin of 19% to 21% for the first quarter of 2025. Beishui once again sold Hong Kong stock ETFs. TRACKER FUND OF HONG KONG (02800) and Hang Seng H-Share Index ETF (02828) suffered net selling of 5.019 billion and 3.184 billion Hong Kong dollars, respectively. On the news front, Zhongtai International stated that the upside of the Hang Seng Index is still limited by weak profit expectations, the uncertainty of future incremental fiscal policy scale, and the expectation of a higher risk-free interest rate of the US dollar, which is expected to continue to suppress the liquidity of Hong Kong stocks for a longer period of time. Therefore, the short-term market in Hong Kong is still dominated by structural volatility, and buying low and selling high is the best strategy. A CICC research report pointed out that the overall market has not yet broken free from the volatile situation, and caution is still the main focus in the short term. In addition, BABA-W (09988) and Tencent (00700) suffered net selling of 166 million and 24.6 billion Hong Kong dollars, respectively.