Northbound funds | Northbound trading net buying of 22.033 billion yuan, tech stocks and Hong Kong ETFs are popular, domestic funds are actively buying Alibaba (09988) with over 6.6 billion Hong Kong dollars.

In the Hong Kong stock market on February 25, net purchases of 22.033 billion Hong Kong dollars were made by northbound investors. Among them, net purchases of 12.89 billion Hong Kong dollars were made through the Shanghai-Hong Kong Stock Connect and 9.142 billion Hong Kong dollars were made through the Shenzhen-Hong Kong Stock Connect. The top three stocks with the most net purchases by northbound investors were BABA-W (09988), TRACKER FUND OF HONG KONG (02800), and Tencent (00700). The top two stocks with the most net sales by northbound investors were HUA HONG SEMI (01347) and China Mobile Limited (00941). The active stocks in the Shanghai-Hong Kong Stock Connect and Shenzhen-Hong Kong Stock Connect were mentioned. Overnight, Alibaba Group Holding Limited Sponsored ADR (BABA.US) dropped more than 10%, while BABA-W (09988) opened nearly 8% lower. Northbound investors took advantage of the opportunity to buy in, resulting in a net purchase amount of 6.644 billion Hong Kong dollars for the whole day. Alibaba announced plans to invest at least 380 billion yuan over the next three years in cloud computing and AI infrastructure. Analysts believe that Alibaba's focus on cloud and AI will drive significant revenue growth in the future, although competition and high capital expenditure may put pressure on profit margins. Northbound investors continued to increase their holdings in Hong Kong ETFs, with net purchases of 5.232 billion Hong Kong dollars and 1.778 billion Hong Kong dollars for TRACKER FUND OF HONG KONG (02800) and Hang Seng H-Share Index ETF (02828) respectively. China Securities Co., Ltd. believes that the Hong Kong stock market has been rapidly recovering since the end of January, led by the technology sector. They expect long-term incremental funds to continue flowing into the market, with a shift in focus from tech stocks to value stocks. The bullish market for Hong Kong stocks is expected to continue. Tencent (00700) saw net purchases of 2.207 billion Hong Kong dollars. Analysts note that Tencent has a significant advantage in AI application scenarios, which will be a key factor in future investments in the AI industry. LI AUTO-W (02015) saw net purchases of 1.135 billion Hong Kong dollars. Li Auto, Inc. announced the release of the i8, the company's first pure electric SUV, which analysts believe exceeded market expectations and will likely have strong sales prospects. There was a divergence in chip stocks, with Semiconductor Manufacturing International Corporation (00981) seeing net purchases of 551 million Hong Kong dollars, while HUA HONG SEMI (01347) saw net sales of 593 million Hong Kong dollars. Analysts believe that as AI competition intensifies, the semiconductor manufacturing sector in China will become a primary bottleneck that may be gradually overcome as the industry matures. Additionally, XPENG-W (09868) and XIAOMI-W (01810) saw net purchases of 283 million and 1 billion Hong Kong dollars respectively, while China Mobile Limited (00941) saw net sales of 122 million Hong Kong dollars.