On April 27, mainland capital recorded a net sell-off of HK$4.092 billion in the Hong Kong stock market. The Shanghai-Hong Kong Stock Connect saw net purchases of HK$4.882 billion, while the Shenzhen-Hong Kong Stock Connect registered net sales of HK$8.974 billion. The top net buying targets were Semiconductor Manufacturing International Corporation (00981), China Mobile (00941), and CNOOC (00883). The most heavily sold positions were Tracker Fund (02800), CSOP Hang Seng Tech Index ETF (03033), and Hang Seng China Enterprises Index Fund (02828).
Mainland investors resumed accumulating chip stocks, with Semiconductor Manufacturing International Corporation (00981) and Hua Hong Semiconductor (01347) receiving net purchases of HK$976 million and HK$667 million respectively. This movement follows the official release of DeepSeek-V4, which completed validation of fine-grained expert parallel solutions on Huawei's Ascend NPU, achieving deep adaptation between domestic large models and local chips. CLSA published a report noting that DeepSeek models demonstrate China's successful advancement in advanced process capacity expansion, maintaining positive outlooks for SMIC and Hua Hong.
China Mobile (00941) attracted net buying of HK$928 million. HSBC's research report indicated that while value-added tax increases generally reduced service revenue and net profits for telecom stocks, China Mobile demonstrated greater resilience than peers. The company's first-quarter service revenue declined 1.1% year-over-year, with EBITDA and net profit falling 4.9% and 4.2% respectively, meeting expectations. Notably, net operating cash flow surged 128% annually, which analysts believe creates room for higher dividend payout ratios.
CNOOC (00883) received net purchases of HK$667 million. Citigroup noted that if secondary US-Iran negotiations fail or don't materialize, the bank stands ready to adopt a more bullish oil price forecast. The institution has delayed its base case prediction for supply disruption resolution to late May (originally mid-to-late April), reaffirming its $120 per barrel near-term price target for Brent crude.
Technology stocks faced substantial selling pressure from mainland capital. Tencent (00700) and Alibaba-W (09988) experienced net sales of HK$653 million and HK$676 million respectively. Citigroup's analysis highlighted differentiated AI model strategies, with Tencent's Hunyuan 3.0 focusing more on real-world applications while Alibaba's Qwen 3.6-Max excels in complex coding and reasoning. DeepSeek-V4's advanced architecture reflects a broader trend of narrowing technological gaps, making China's leading models increasingly viable alternatives to global competitors.
Hong Kong ETFs witnessed massive divestment, with Tracker Fund (02800), CSOP Hang Seng Tech Index ETF (03033), and Hang Seng China Enterprises Index Fund (02828) seeing net sales of HK$3.208 billion, HK$1.099 billion, and HK$819 million respectively. Guotai Junan Securities observes that geopolitical risks are gradually easing, and although fluctuations may persist, clearer risk boundaries should lead to diminishing market sensitivity to conflict pricing. Industrial Securities notes that short-term sentiment indicators entering moderate-to-high ranges may transition Hong Kong indices into consolidation patterns, while medium-term trend reversal remains unlikely before core listed companies demonstrate clear earnings improvement.
Additionally, Cambridge Technology (06166) received net buying of HK$138 million, while Yangtze Optical Fibre and Cable (06869) faced net sales of HK$457 million.