On April 29, Hong Kong's stock market saw a net outflow of HK$3.952 billion from northbound capital. Specifically, the Shanghai-Hong Kong Stock Connect recorded a net inflow of HK$1.201 billion, while the Shenzhen-Hong Kong Stock Connect recorded a net outflow of HK$5.153 billion. The stocks that received the most net buying from northbound capital were China Construction Bank (00939), CNOOC (00883), and Yangtze Optical Fibre and Cable (06869). The stocks that experienced the most net selling were the Hang Seng China Enterprises Index tracker (02828), the Tracker Fund of Hong Kong (02800), and Tencent (00700).

China Construction Bank (00939) attracted net purchases of HK$494 million. After market close, the bank reported its first-quarter results, showing operating revenue of RMB 206.415 billion, a year-on-year increase of 10.98%. The group’s net profit reached RMB 86.821 billion, with net profit attributable to shareholders at RMB 86.291 billion, up 3.68% and 3.53% year-on-year, respectively. The annualized average return on assets was 0.75%, and the annualized weighted average return on equity was 9.85%.

CNOOC (00883) saw net buying of HK$331 million. HSBC released a research note stating that CNOOC’s first-quarter performance benefited from rising oil prices and strong production growth, while costs remained under control. Net profit for the period increased by 7% year-on-year to RMB 39 billion, with realized oil prices up 5% and production rising 9% year-on-year. Exploration costs remained flat compared to the previous year, reflecting the company’s disciplined cost management. Management maintained its production and capital expenditure guidance for 2026, but HSBC suggested that if Brent crude remains above $80 per barrel, CNOOC may raise its guidance, supporting further growth in profits and shareholder returns.

Performance diverged among optical communication stocks. Yangtze Optical Fibre and Cable (06869) received net inflows of HK$227 million, while Cambridge Technology (06166) saw net outflows of HK$191 million. According to CRU forecasts, global demand for data center optical fiber cables is expected to reach 69.6 million core kilometers by 2025 and grow to 127.6 million core kilometers by 2030, with a compound growth rate far exceeding that of the traditional telecommunications market. First Shanghai noted that against the backdrop of robust demand for computing power, the growth trajectory of optical communication significantly outpaces the industry average, maintaining a positive outlook on investment opportunities in the sector, including companies related to optical modules, optical chips, and optical devices.

Northbound capital continued to reduce holdings in Hong Kong ETFs and chip stocks. HUA HONG SEMI (01347) and SMIC (00981) saw net selling of HK$25.55 million and HK$150 million, respectively. Reports indicated that the U.S. government recently instructed several chip equipment companies to halt shipments to HUA HONG SEMI, China’s second-largest chip manufacturer. Additionally, the U.S. recently proposed a draft of the MATCH Act, aimed at further tightening export controls on semiconductor hardware to China through mandatory multilateral coordination.

The Tracker Fund of Hong Kong (02800) and the Hang Seng China Enterprises Index tracker (02828) experienced net selling of HK$928 million and HK$2.274 billion, respectively. Soochow Securities pointed out that current U.S. stock valuations hardly reflect the impact of geopolitical conflicts on fundamentals. If U.S.-Iran tensions exceed expectations in the short term, it could disrupt market momentum, affect global risk appetite, and influence the pace of overseas capital allocation to Hong Kong stocks.

Meanwhile, on Wednesday, WTI crude futures extended gains by nearly 4%, approaching $104 per barrel. Additionally, Alibaba-W (09988) and Tencent (00700) saw net selling of HK$217 million and HK$733 million, respectively.