On February 26, net selling by southbound capital in the Hong Kong stock market totaled HK$7.37 billion. Specifically, net selling through the Shanghai-Hong Kong Stock Connect was HK$2.31 billion, while net selling via the Shenzhen-Hong Kong Stock Connect reached HK$5.06 billion.
The stocks with the highest net purchases by southbound capital were Meituan-W (03690), Dongfang Electric (01072), and Xiaomi Group-W (01810). In contrast, the stocks experiencing the largest net sell-offs were CNOOC (00883), Alibaba-W (09988), and Changfei Optical Fiber & Cable (06869).
Among active trades through the Shanghai-Hong Kong Stock Connect, Dongfang Electric (01072) received net buying of HK$125 million. Reports indicate that major tech companies including Amazon and Google will gather at the White House on March 4 to formally sign the "Ratepayer Protection Commitment" announced in the State of the Union address. These companies are expected to build, introduce, or procure power supplies for new AI data centers. Everbright Securities believes that power shortages in the U.S. are increasing the demand for reliability in the power system, which could benefit sectors such as gas turbines, power equipment, and energy storage.
Xiaomi Group-W (01810) attracted net buying of HK$18.35 million. Lei Jun, Chairman and CEO of Xiaomi Group, stated that the company plans to focus on core technologies such as chips, AI, and operating systems over the next five years, aiming to become a global leader in hardcore technology.
In contrast, Hua Hong Semiconductor (01347) and SMIC (00981) saw net selling of HK$284 million and HK$298 million, respectively. Morgan Stanley noted in a research report that AI demand is causing significant divergence within the semiconductor industry. Upstream manufacturers, such as those producing AI memory chips like HBM, are benefiting notably, while downstream players like PC and smartphone makers may struggle to pass on cost pressures.
China Life Insurance (02628) recorded net selling of HK$436 million. HSBC highlighted in a report that, under Chinese A-share listing rules, companies must issue profit warnings by the end of January if annual profit growth exceeds 50%. Although China Life reported a 60.5% year-on-year increase in net profit for the first nine months of 2025, it did not issue a profit warning. The bank estimates this may indicate a net loss of at least RMB 7.4 billion for China Life in the fourth quarter of 2025.
CNOOC (00883) faced net selling of HK$893 million. On February 26, WTI crude oil fell below $65 per barrel. Data released by the EIA showed that commercial crude inventories, excluding strategic reserves, increased by 15.989 million barrels to 436 million barrels in the week ending February 20, far exceeding the expected increase of 1.481 million barrels. Additionally, the third round of U.S.-Iran negotiations is scheduled for February 26. Iran's foreign minister stated that there is still a significant chance of reaching a win-win diplomatic solution, with the goal now within reach.
Elsewhere, Meituan-W (03690) and Ubtech (09880) received net buying of HK$311 million and HK$16.51 million, respectively. Meanwhile, Alibaba-W (09988), Changfei Optical Fiber & Cable (06869), and Tencent (00700) saw net selling of HK$888 million, HK$624 million, and HK$548 million, respectively.