Northbound funds | Northwater's net buying amounted to 4.567 billion, Goldman Sachs bullish on Xiaomi adding AI, Northwater increased its shareholding of Xiaomi (01810) by over 1 billion Hong Kong dollars.

On February 12th, in the Hong Kong stock market, northbound investors had a net buy of HKD 4.816 billion. Among them, the Shanghai-Hong Kong Stock Connect had a net buy of HKD 2.824 billion, while the Shenzhen-Hong Kong Stock Connect had a net buy of HKD 1.992 billion. The top stocks that northbound investors had a net buy in were Tencent (00700), XIAOMI-W (01810), and MEITUAN-W (03690). The top stocks that northbound investors had a net sell in were Zijin Mining Group (02899), YOFC (06869), and BABA-W (09988). Active trading stocks in the Shanghai-Hong Kong Stock Connect: Active trading stocks in the Shenzhen-Hong Kong Stock Connect: Tencent (00700) had a net buy of HKD 1.429 billion. According to reports from JP Morgan, the Lunar New Year continues to be the most intensive and historically effective release window in the consumer technology sector in China. If the new version of DeepSeek is released during the Lunar New Year, the significant impact is likely to be the release of platform economic benefits. For internet platforms, the bank believes that Tencent is most likely to benefit the most from the potential new version of DeepSeek. XIAOMI-W (01810) and KINGSOFT CLOUD (03896) had a net buy of HKD 1.019 billion and HKD 1.89 billion, respectively. According to reports from Goldman Sachs, Xiaomi is expected to invest about RMB 10 billion in the AI field by 2026, and KINGSOFT CLOUD could become the primary beneficiary of Xiaomi's continued investment in AI development. The bank stated that Xiaomi is actively integrating AI with the physical world through its "People, Cars, and Home" ecosystem, and it is expected that KINGSOFT CLOUD will update and improve its transaction agreement with Xiaomi by mid-year, increasing the revenue ceiling from Xiaomi by 10% to 15% in 2026 to 2027. MEITUAN-W (03690) had a net buy of HKD 0.984 billion. According to reports, the LongCat intelligent body of Meituan was officially released. The intelligent body was trained by the LongCat team using the method of "real scenarios + scientific training," which allows the intelligent body to start from real-life experiences with each research, thereby alleviating the pain points of current AI in solving issues in the real physical world. CNOOC (00883) had a net buy of HKD 0.138 billion. According to reports from CCTV, the US Department of Defense has instructed the deployment of the second aircraft carrier strike group to the Middle East as the US prepares for possible attacks on Iran. Ping An Securities pointed out that the uncertainty of the Iranian situation remains strong, coupled with the US and India reaching a trade agreement, India committing to stop importing Russian oil and increase purchases of American and Venezuelan oil, reshaping the global crude oil trade flow, with short-term support leaning more towards oil price strength. Zijin Mining Group (02899) had a net sell of HKD 0.346 billion. According to reports from Citigroup, investors are concerned about the increased risk in the control of the group by local state-owned assets after Zijin's former chairman Chen Jinghe left, believing that the worries are unfounded. In addition, as the term of the new board of directors will end in 2028, investors are concerned that the three-year production plan may not achieve the 2030 target, which is seen as excessive, and believe that the company is inclined to provide clearer performance guidance. The bank expects the company to provide a rolling three-year plan and does not expect major changes to the board of directors in 2028. In addition, Semiconductor Manufacturing International Corporation (00981) had a net buy of HKD 17.87 million. Meanwhile, YOFC (06869), BABA-W (09988), and SYNAGISTICS (02562) had net sells of HKD 75.36 million, HKD 10.41 million, and HKD 1.24 million respectively.