On February 9, the Hong Kong stock market witnessed a net outflow of HK$1.887 billion from northbound capital. Specifically, the Shanghai-Hong Kong Stock Connect recorded a net sell-off of HK$1.644 billion, while the Shenzhen-Hong Kong Stock Connect saw a net outflow of HK$242 million. The top stocks attracting northbound buying were TENCENT (00700), CSOP Hang Seng Tech Index ETF (03033), and Xiaomi Corporation-W (01810). In contrast, the Tracker Fund (02800), Hang Seng China Enterprises Index Fund (02828), and China Mobile (00941) faced the largest net sell-offs.
TENCENT (00700) received a net purchase of HK$1.799 billion. Market analysts at J.P. Morgan noted that TENCENT’s approach to AI products appears more cautious compared to peers, raising concerns about potential valuation compression. However, the firm emphasized that TENCENT’s most enduring asset is not any single AI capability but its distribution and user engagement—a strength that compounds over time and enables new technologies, including AI, to scale at lower user acquisition costs than competitors.
A clear divergence was observed among Hong Kong-listed ETFs. The CSOP Hang Seng Tech Index ETF (03033) attracted net buying of HK$639 million, while the Tracker Fund (02800) and Hang Seng China Enterprises Index Fund (02828) experienced net sell-offs of HK$4.554 billion and HK$1 billion, respectively. Soochow Securities commented that short-term challenges for Hong Kong stocks are not yet over, urging continued monitoring of overseas risks and domestic AI catalysts. They suggested that if domestic AI developments exceed expectations around the Lunar New Year, Hong Kong stocks may rally alongside A-shares. Meanwhile, SPDB International expects the market to remain volatile in the near term, with potential rotation in investment themes and styles.
Xiaomi Corporation-W (01810) received a net inflow of HK$209 million. The company’s research arm recently announced a breakthrough in embodied intelligence—a general framework named "TacRefineNet" that enables millimeter-level pose adjustment using only tactile feedback, without relying on visual input or 3D object models.
YOFC (06869) saw net buying of HK$168 million. Huayuan Securities pointed out that optical fiber prices have been rising modestly for about six months, with G.652.D bare fiber prices climbing from below RMB 20 per core kilometer and accelerating since the start of 2026. The key driver is a supply-demand reversal: capacity on the supply side continues to shrink, while demand is accelerating due to AI data center construction, leading to a shortage across various fiber types. The firm expects the optical fiber and cable sector to maintain upward momentum, with related companies likely to see improved earnings as prices rise.
Semiconductor stocks regained favor among investors. SMIC (00981) and Hua Hong Semiconductor (01347) received net purchases of HK$147 million and HK$149 million, respectively. SMIC is set to release its financial results on February 10, followed by Hua Hong Semiconductor on February 12. Caitong Securities highlighted that strong demand for AI computing power continues to drive global foundry industry growth. In the fourth quarter of 2025, TSMC’s revenue reached NT$1.05 trillion, up 20.45% year-on-year, setting a new quarterly record. Full-year revenue also rose significantly by 31.60% to NT$3.81 trillion.
Junda International (02865) attracted net buying of HK$45.10 million. According to the National Enterprise Credit Information Publicity System, the controlling shareholder of Shanghai Fuyao Xinghe has been changed to Junda International, which now holds a 60% stake. The legal representative has also been updated to Zheng Hongwei, Vice Chairman of Junda International. Xuntian Qianhe, a wholly-owned subsidiary of Shanghai Fuyao Xinghe, is a leading domestic satellite manufacturer.
Additionally, Alibaba-W (09988) and Pop Mart (09992) received net inflows of HK$50.41 million and HK$37.13 million, respectively. Conversely, China Mobile (00941) faced a net sell-off of HK$199 million.