Northbound funds | North water net sold 1.2 billion BYD Company Limited announced a huge equity financing North water rushed to raise over 1.2 billion Hong Kong dollars for BYD COMPANY (01211)

On March 4th, in the Hong Kong stock market, Northbound funds had a net sell of 1.2 billion Hong Kong dollars. Among them, the Shanghai-Hong Kong Stock Connect had a net sell of 2.232 billion Hong Kong dollars, while the Shenzhen-Hong Kong Stock Connect had a net buy of 1.032 billion Hong Kong dollars. The stocks with the most net buy from Northbound funds were BABA-W (09988), BYD COMPANY (01211), and Semiconductor Manufacturing International Corporation (00981). The stocks with the most net sell from Northbound funds were TRACKER FUND OF HONG KONG (02800), Hang Seng H-Share Index ETF (02828), and CNOOC Limited (00883). Active trading stocks in the Shanghai-Hong Kong Stock Connect and Shenzhen-Hong Kong Stock Connect: BABA-W (09988) had a net buy of 1.844 billion Hong Kong dollars. According to reports from PuYin International, China's leading technology companies are increasing their investments in AI, which is expected to result in a doubling of capital expenditure in AI. This will lead to a super cycle in China's AI infrastructure, opening up long-term growth opportunities in cloud computing and driving demand in the software services industry. BYD COMPANY (01211) had a net buy of 1.231 billion Hong Kong dollars. BYD Company Limited announced the placement of nearly 130 million H shares, raising approximately 43.38 billion Hong Kong dollars for research and development, overseas business expansion, working capital replenishment, and general corporate purposes. Citigroup noted that this equity financing is positive due to the higher returns on overseas assets. Nomura believes that the stock issuance will have limited dilutive effects on the company's balance sheet. Semiconductor Manufacturing International Corporation (00981) had a net buy of 195 million Hong Kong dollars. On February 28th, the 2025 RISC-V Ecosystem Conference was held in Beijing. Chinese Academician Ni Guangnan pointed out that the open-source RISC-V model will help build a global ecosystem for inclusive and collaborative innovation, becoming a new engine for the chip industry transformation. RISC-V is seen as an important open-source architecture for the AI era. LI AUTO-W (02015) had a net buy of 93.88 million Hong Kong dollars. Dahuaxianxian released a report stating that Li Auto officially launched its first all-electric SUV model i8 last week, marking the company's shift from focusing on range-extended electric vehicles to diversifying its electric vehicle product lineup. The new model design meets market demands and aligns with the company's development strategy, which is expected to strengthen the company's position in China's high-end electric vehicle market. CNOOC Limited (00883) had a net sell of 174 million Hong Kong dollars. An OPEC representative stated that OPEC+ will continue to push forward with its oil production increase plan in April. OPEC+ will continue with its plan to increase production by 138,000 barrels per day in April. This will be the first of a series of monthly production increases to restore production levels that have been halted for over two years, with production gradually recovering to 2.2 million barrels per day by 2026. Northbound funds sold Hong Kong stock ETFs, with TRACKER FUND OF HONG KONG (02800) and Hang Seng H-Share Index ETF (02828) experiencing net sells of 6.139 billion and 2.92 billion Hong Kong dollars respectively. Huatai pointed out that in the short term, there may be risks of consolidation or pullback for some stocks that have seen significant gains. However, in the medium to long term, as long as the revaluation logic of Chinese technology assets remains unchanged, there is still a strong belief in the value revaluation market trend. BOCOM INTL believes that as the two sessions approach, the market's attention to incremental fiscal policies is gradually increasing, which is expected to provide some support to the market. Additionally, UBTECH ROBOTICS (09880) had a net buy of 36.86 million Hong Kong dollars, while Tencent (00700) had a net sell of 34.1 million Hong Kong dollars.