Northbound funds | Northbound capital recorded a net inflow of 16.214 billion yuan. Northbound capital seized opportunities to buy Hong Kong stock ETFs at low levels and increased their holdings in oil and gas stocks such as CNOOC (00883).

On March 2nd, in the Hong Kong stock market, Beishui's net purchase amounted to 16.214 billion Hong Kong dollars, with a net purchase of 8.108 billion Hong Kong dollars through the Hong Kong Stock Connect (Shanghai) and a net purchase of 8.106 billion Hong Kong dollars through the Hong Kong Stock Connect (Shenzhen). The stocks with the most net purchases by Beishui were CSOP Hang Seng TECH Index ETF(03033), TRACKER FUND OF HONG KONG(02800), and XIAOMI-W(01810). The stocks with the most net sales by Beishui were BABA-W(09988) and Semiconductor Manufacturing International Corporation(00981). Active trading stocks through the Hong Kong Stock Connect (Shanghai) and the Hong Kong Stock Connect (Shenzhen). Beishui bought Hong Kong stock ETFs on dips, with CSOP Hang Seng TECH Index ETF(03033), TRACKER FUND OF HONG KONG(02800), and Hang Seng H-Share Index ETF(02828) receiving net purchases of 3.122 billion, 2.447 billion, and 1.531 billion Hong Kong dollars respectively. On the news side, tensions escalated in Iran. Guoyuan International released a research report stating that the impact of this military action is more reflected in geopolitics, with relatively small direct impacts on the economy; however, the increase in geopolitical risks may affect the overall risk appetite of the Hong Kong stock market in the short term, and market risk aversion sentiment may increase. It is expected that in the short term, the Hong Kong stock market will be more focused on sector rotation and structural market trends, while in the medium to long term, more attention will need to be paid to the impact of the Iran situation on overseas interest rate environments. XIAOMI-W(01810) received a net purchase of 1.629 billion Hong Kong dollars. On the news side, Xiaomi recently held the Xiaomi 17 Series global launch event in Barcelona, Spain. Lu Weibing stated that as Xiaomi's first global event for 2026, it will bring three "surprises," including a new chapter in cooperation with Leica; in the field of new energy vehicles, Xiaomi has partnered with Gran Turismo and now everyone can drive the Xiaomi SU7 Ultra in the game; in two days, Xiaomi will also debut at the Mobile World Congress (MWC), where everyone will witness the real implementation of the "person-car-home ecosystem" and Xiaomi's artificial intelligence. CNOOC(00883) and Shandong Molong Petroleum Machinery(00568) received net purchases of 1.374 billion and 0.128 billion Hong Kong dollars respectively. On the news side, Citigroup raised short-term Brent crude price forecasts to $85 and warned that in a scenario of extreme attacks on oil and gas infrastructure, Brent crude could surge to $120. HSBC pointed out that if the Strait of Hormuz, a key oil shipping route, were to be blocked, about 4.6 million barrels per day of OPEC+ spare capacity would become idle, making it impossible to export this capacity, leading to significant upward pressure on oil prices. YOFC(06869) received a net purchase of 0.207 billion Hong Kong dollars. On the news side, Guosheng research report pointed out that since the end of 2025, retail prices of optical fiber cables have continued to rise. According to information from the Stone Optical Communication Network, the price of G.652.D bare fiber has exceeded 30 yuan per core kilometer in February 2026, with actual transaction prices mostly concentrated between 40-50 yuan, and some channel prices even exceeding 50 yuan per core kilometer, with a cumulative increase of 94%-144%. The bank believes that the optical fiber cable industry has entered a high boom cycle, with integrated capacity of optical rods and fibers, large production capacity flexibility, and leading manufacturers with the ability to go global, will fully enjoy the benefits of the new cycle. COSCO Shipping Energy Transportation(01138) received a net purchase of 0.203 billion Hong Kong dollars. On the news side, tensions in the Strait of Hormuz escalated suddenly. A report from Goldman Sachs pointed out that the oil tanker sector and China COSCO Shipping Energy in the transportation stocks they cover have the greatest upside potential. In an extreme scenario where Iran's oil sanctions are completely lifted, about 5% of shipping demand will shift from shadow fleets to compliant fleets, resulting in various types of crude oil tankers having the potential to increase daily TCE (time charter equivalent) by about $30,000. In addition, Tencent(00700) received net purchases of 0.782 billion Hong Kong dollars. While BABA-W(09988) and Semiconductor Manufacturing International Corporation(00981) received net sales of 1.389 billion and 0.154 billion Hong Kong dollars respectively.