Track the latest dynamics of southbound capital flows.
On February 5, southbound funds recorded a net purchase of HKD 24.977 billion worth of Hong Kong stocks, marking the highest single-day net inflow since August 15, 2025.
The breakdown includes: a net purchase of HKD 4.576 billion in Tracker Fund, HKD 5.578 billion in Tencent, HKD 1.553 billion in Alibaba-W, HKD 1.239 billion in China Life Insurance, HKD 987 million in Hang Seng China Enterprises Index ETF, HKD 845 million in CSOP Hang Seng Tech ETF, HKD 564 million in China Mobile, HKD 540 million in Meituan-W, HKD 500 million in Xiaomi Group-W, HKD 391 million in Pop Mart, and HKD 120 million in Oriental Selection; while net selling amounted to HKD 456 million in Yangtze Optical Fibre and Cable, HKD 362 million in Hua Hong Semiconductor, and HKD 308 million in SMIC.
According to statistics, southbound funds have consecutively made net purchases of Xiaomi for six days, totaling HKD 3.43011 billion; Tencent for four days, totaling HKD 11.068 billion; China Mobile for three days, totaling HKD 1.32276 billion; and Meituan for three days, totaling HKD 1.18544 billion. Additionally, there were consecutive nine-day net sales of SMIC, amounting to HKD 3.98148 billion.
Northern Water Trends
Alibaba: According to posts shared by Alibaba employees on social media, Jack Ma visited the office location of the company’s Qwen project team. On February 6, Qwen will launch a CNY 3 billion ‘Qwen Spring Festival Giveaway Plan,’ emphasizing ‘non-stop freebies across food, drink, entertainment, and shopping’ along with substantial cash red packets. However, the company has yet to disclose specific details about the campaign format. Previously, the Qwen app had been integrated into Alibaba’s ecosystem scenarios such as Taobao Flash Purchase, Alipay, Taobao, Fliggy, and AutoNavi to test AI-driven shopping features.
Meituan: The company plans to acquire all issued shares of Dingdong, a leading fresh e-commerce enterprise in mainland China, for USD 717 million. Under the agreement, the transferor may withdraw up to USD 280 million from the target group, provided that the group’s net cash remains no less than USD 150 million. Upon completion of this acquisition, the target company will become an indirectly wholly-owned subsidiary of Meituan, and its financial results will be consolidated into Meituan’s financial statements.
Oriental Selection: Interim performance as of November 30, 2025, indicates total revenue of CNY 2.3 billion during the period, representing a year-on-year increase of 5.7%, slightly below expectations. Gross profit reached CNY 841.6 million, reflecting a year-on-year growth of 14.5%. Net profit attributable to owners of the company amounted to CNY 239 million, reversing the previous loss. Daiwa Securities released a research note stating that following the announcement of these results, their view on the company has turned more positive. They believe the company has overcome operational challenges, supported by favorable developments in its private label business, structural reductions in operating costs, and access to non-Douyin channels, which provide important options for future growth. They also consider the stock’s risk-reward profile to have improved significantly.
Chip Stocks (Hua Hong Semiconductor, SMIC): Disappointing earnings released by chipmaker AMD caused its share price to plummet by over 16%, recording the largest decline since 2018. Investors have long been concerned that artificial intelligence could undermine the profitability models of companies focused on coding, databases, and IT services. Recent developments—such as new tools introduced by Anthropic—have further exacerbated these concerns.
