Northbound funds | Northbound trading net purchases amounted to 14.859 billion yuan. The Spring Festival AI red envelope competition continues to intensify, with Northbound trading continuing to aggressively buy into internet giants.

On February 6th, in the Hong Kong stock market, Northbound capital had a net buy of 14.859 billion Hong Kong dollars. Among them, the Hong Kong stock connect (Shanghai) had a net buy of 7.113 billion Hong Kong dollars, and the Hong Kong stock connect (Shenzhen) had a net buy of 7.746 billion Hong Kong dollars. The stocks with the highest net buy from Northbound capital were Tencent (00700), BABA-W (09988), and CSOP Hang Seng TECH Index ETF (03033). The stock that experienced the highest net sell from Northbound capital was YOFC (06869). Northbound capital continued to grab shares in tech and internet companies, with Tencent (00700), BABA-W (09988), and MEITUAN-W (03690) receiving net buys of 4.324 billion, 1.655 billion, and 0.31 billion Hong Kong dollars respectively. On the news front, WeChat further banned the red envelope activities of Alibaba's Qiwen and Tencent's Yuanbao AI applications on February 6th, making them unable to be copied and identified in private chats and group chats. Goldman Sachs released a research report stating that competition in China's consumer-level AI sector had escalated further before the Chinese New Year, and they predicted that the final entrance of AI would still be dominated by TENCENT, Alibaba, and ByteDance. POP MART (09992) received a net buy of 589 million Hong Kong dollars. Morgan Stanley believed that POP MART's stock buyback was an effective catalyst, and the strong popularity of its new IP products Twinkle Twinkle and Skullpanda would continue to drive its IP product operation. Considering investors' holdings, the stock may still have room for growth in March and April. Semiconductor Manufacturing International Corporation (00981) received a net buy of 450 million Hong Kong dollars. In terms of news, the trend of rising chip prices continued to spread, with domestic chip manufacturers such as Hunan Goke Microelectronics, China Micro Semicon (Shenzhen), and Shenzhen Injoinic Technology issuing price adjustment notices, with the highest increase reaching 80%, covering storage, MCU, analog chips, and other core areas. Analysts believe that the trend of rising prices for domestic chips will continue into the first half of 2026, and even more companies may follow suit. China National Offshore Oil Corporation (00883) received a net buy of 411 million Hong Kong dollars. Huatai believed that geopolitical premiums or early boosts could lead to a bottom-rebound in oil prices. Since January 26th, tensions in geopolitical situations in Venezuela and Iran have once again raised market supply risk concerns. Data shows that geopolitical premiums have led to a bottom-rebound in oil prices during the off-season, with demand recovery and global inventory accumulation. In the second and third quarters of 2026, oil prices are expected to bottom out and rise. Coupled with rate cuts by the Federal Reserve stimulating demand, the demand for finished oil products in the Asia-Africa-Latin America region may improve, leading to an increase in the average Brent price for 2026 to $65 per barrel. China Mobile Limited (00941) received a net buy of 272 million Hong Kong dollars. Morgan Stanley believed that the three major telecom operators would face pressure on net profits in 2026 due to the raise in value-added tax rates, with China Mobile Limited being relatively less affected due to its high profit margin. Operators will offset negative effects by raising prices, optimizing costs, and growing their AI cloud business. Currently, after the stock price retreat, the high dividend yield remains attractive, and they maintain a "hold" rating. Hainan Drinda New Energy Technology (02865) received a net buy of 8.58 million Hong Kong dollars. According to Caixin, industry chain sources revealed that the Tesla team recently surveyed the Chinese photovoltaic industry chain, with heterojunction equipment manufacturers signing contracts. It is reported that in December last year, Hainan Drinda New Energy Technology announced a strategic cooperation framework agreement with Shangyi Optoelectronics to cooperate on the research and industrialization of flexible perovskite technology for space computing and space energy applications. In addition, CSOP Hang Seng TECH Index ETF (03033) and XXF (02473) received net buys of 803 million and 38.16 million Hong Kong dollars respectively, while YOFC (06869) experienced a net sell of 78.68 million Hong Kong dollars.