Northbound funds | Northbound funds net bought 10.399 billion, with Northbound funds adding nearly 5 billion Hong Kong dollars to Ali Baba (09988) and selling over 2.1 billion Hong Kong dollars of TRACKER FUND OF HONG KONG (02800).

On February 26th, the turnover of Northbound capital in the Hong Kong stock market was a net purchase of 10.399 billion Hong Kong dollars. Among them, the turnover of Shanghai-Hong Kong Stock Connect was a net purchase of 2.126 billion Hong Kong dollars, and the turnover of Shenzhen-Hong Kong Stock Connect was a net purchase of 8.273 billion Hong Kong dollars. The stocks with the highest net purchases by Northbound capital were BABA-W (09988), XIAOMI-W (01810), and Tencent (00700). The stocks with the highest net sales by Northbound capital were TRACKER FUND OF HONG KONG (02800), China Mobile Limited (00941), and HUA HONG SEMI (01347). Active trading stocks through Shanghai-Hong Kong Stock Connect Active trading stocks through Shenzhen-Hong Kong Stock Connect BABA-W (09988) had a net purchase of 4.994 billion Hong Kong dollars. On the news front, Alibaba fully open-sourced its video generation model Wanxiang 2.1 model last night, with both video and image generation capabilities improved. In addition, Alibaba's Tianyi Qianwen team launched the QwQ-Max-Preview deep thinking model, introducing a new reasoning model QwQ in Qwen Chat and building QwQ-MaxPreview on the basis of Qwen2.5-Max. Citi published a report indicating that the above developments show that Alibaba is still committed to seizing AI opportunities at a faster pace. It maintains a "buy" rating for Alibaba with a target price of 166 Hong Kong dollars, equivalent to a predicted 2026 P/E ratio of 10 times. Tencent (00700) had a net purchase of 1.366 billion Hong Kong dollars. On the news front, Shenwan Hongyuan Group pointed out that the popularization of open-source, low-cost models by DeepSeek brings model equity, and Tencent has a significant advantage in application scenarios. Therefore, it has a clear advantage in the AI application investment phase when the AI industry chain enters the AI application stage. On the one hand, while Tencent develops its own mixed-element model, accessing Deepseek can avoid the risk of a single technology route. On the other hand, Tencent has a reserve of application scenarios + data + cloud + inference power, and is expected to have a competitive advantage in the construction stage of "open-source models + private data" AI applications. LI AUTO-W (02015) had a net purchase of 1.309 billion Hong Kong dollars. On the news front, IdealCar unveiled its pure electric SUV i8 for the first time, with significant changes to the i8's appearance. Zhongjin pointed out that previous market disagreements in the pure electric business were mainly focused on appearance and replenishment. The i8 made its first appearance, with significant changes to its appearance compared to the ME A, easing market pessimism; the bank judged that the i8 would be released around the middle of the year, and there may be more positive information about the model gradually released in the near future. There is no need to be pessimistic about the pure electric business. Hong Kong Exchanges and Clearing Limited (00388) had a net purchase of 1.15 billion Hong Kong dollars. On the news front, the Financial Secretary of the Hong Kong Special Administrative Region, Paul Chan Mo-po, said today that to promote more stocks to be traded in Renminbi and enhance market liquidity, the two places are accelerating the preparation for the inclusion of Renminbi trading counters in the Hong Kong Stock Connect. Lyon believes that the recovery of IPOs and the inflow of funds from the Mainland will be the two fundamental driving forces for Hong Kong Exchanges and Clearing Limited this year. Potential catalysts for HKEX include positive surprises in mainland policies, potential dividend tax reductions, and a more innovative three-year strategic plan. Chip stocks continue to differentiate, with Semiconductor Manufacturing International Corporation (00981) having a net purchase of 531 million Hong Kong dollars, while HUA HONG SEMI (01347) had a net sale of 81.65 million Hong Kong dollars. On the news front, according to CNBC News, the Trump administration is drafting stricter semiconductor restrictions and pressuring key allies to upgrade restrictions on China's chip industry. Guotai Junan's research believes that as the AI competition intensifies and the industry accelerates, chip manufacturing is currently the main bottleneck in China's AI industry, which is expected to gradually break through as the industry chain matures. Companies in the semiconductor manufacturing and packaging and testing sectors are expected to benefit from the huge demand in the domestic market, and it is recommended to increase holdings of Semiconductor Manufacturing International Corporation, HUA HONG SEMI, etc. XPENG-W (09868) had a net purchase of 460 million Hong Kong dollars. On the news front, Xiaopeng Motors Chairman and CEO He Xiaopeng announced today that the new Xiaopeng G6 will be officially unveiled on February 28th. In addition, He Xiaopeng recently stated at the overseas shipping ceremony of Xiaopeng X9 that the company plans to launch quasi-L3 and L3 autonomous driving in 2025, with related technology architecture reusable in Siasun Robot&Automation's foot and hand structures, and the company is expected to become one of the first companies in China to mass-produce L3 Siasun Robot&Automation. Founder pointed out that Siasun Robot&Automation and automobiles have a high degree of synergy in manufacturing and supply chain aspects, and the focus on the Siasun Robot&Automation track will enhance the company's ability to break through existing product form boundaries and seize market opportunities in the "L3 level" Siasun Robot&Automation field. MEITUAN-W (03690) had a net purchase of 409 million Hong Kong dollars. On the news front, CITIC SEC released a research report stating that MEITUAN-W has always been very proactive in investing in and applying new technologies, and this wave of technological innovation is more conducive to improving the competitiveness of leading companies in various sub-sectors. The bank pointed out that Meituan's long-term significance for riders' social security contributions is higher than the short-term cost impact. Relative matters, such as social security, have been brewing for several years and are in themselves cyclical. In the long run, it is conducive to the healthy platform ecosystem and strengthens competitiveness. TRACKER FUND OF HONG KONG (02800) had a net sale of 2.113 billion Hong Kong dollars. On the news front, CITIC SEC pointed out that the current Hang Seng Index and HSCEI dynamic P.E is only at the 45th and 31st percentiles in history, with upward revisions in performance expectations and a high percentage of short selling, the safety margin of Hong Kong stocks remains sufficient. Against the backdrop of continuous AI narrative catalysis, improved fundamental expectations, and global fund rotation, we believe that Hong Kong stocks will continue the reversal trend since 2024, despite short-term disturbances.In addition, XIAOMI-W (01810) and UBTECH ROBOTICS (09880) received net purchases of HKD 1.818 billion and HKD 163 million respectively. Meanwhile, China Mobile Limited (00941) suffered net sales of HKD 914 million.