Southbound Funds Tracking | Weekly net sell-off exceeds HKD 6.3 billion, increasing holdings in CNOOC, Alibaba, and other tech and internet stocks

Translated from: Caixin Global

Caixin Global, March 20 (Editor: Feng Yi) According to Wind data, this week, southbound funds saw a cumulative net outflow of about HKD 6.329 billion, indicating a renewed tendency to reduce holdings.

In the short term, funds continued to bet on a rebound through the three major ETFs this week. However, as the Hang Seng Index accelerated to dip below the 25,000-point mark, selling actions reemerged on Friday.

On that day, the Tracker Fund of Hong Kong (02800.HK), Hang Seng China Enterprises (02828.HK), and Southern Hang Seng Technology (03033.HK) experienced net sales of HKD 13.382 billion, HKD 4.175 billion, and HKD 3.630 billion, respectively.

In terms of individual stocks, over the past 7 days, southbound funds:

Significantly net bought: Alibaba-W (09988.HK) HKD 5.125 billion; Tencent Holdings (0700.HK) HKD 3.251 billion; China National Offshore Oil (00883.HK) HKD 2.894 billion; Xiaomi Group-W (01810.HK) HKD 1.608 billion.

Significantly net sold: SMIC (00981.HK) HKD 2.129 billion.

Investment Highlights

Alibaba-W fell a total of 6.64% this week, with funds increasing their holdings by 6.29 million shares in the past 5 days, showing continued short-term inflow.

Tencent Holdings fell a total of 7.21% this week, with funds increasing their holdings by 3.98 million shares in the past 5 days, showing a slowdown in short-term inflow.

China National Offshore Oil rose a total of 2.08% this week, with funds increasing their holdings by 85.78 million shares in the past 5 days, showing a slowdown in short-term inflow.

Xiaomi Group-W fell a total of 0.36% this week, with funds reducing their holdings by 1.112 million shares in the past 5 days, but there has been some inflow in the last two days.

SMIC fell a total of 8.52% this week, with funds reducing their holdings by 1.052 million shares in the past 5 days, showing accelerated short-term outflow.

Note: Due to the T+2 settlement at the Hong Kong Stock Exchange, the data reflects the near past 5 days as of two days ago.

On Friday, southbound funds had a net outflow of about HKD 21.005 billion, with the Shanghai-Hong Kong Stock Connect seeing a net outflow of about HKD 14.898 billion and the Shenzhen-Hong Kong Stock Connect a net outflow of about HKD 6.107 billion.

Data from the Hong Kong Stock Exchange shows that today, southbound funds:

Significantly net bought: Xiaomi Group-W (01810.HK) HKD 2.459 billion; Alibaba-W (09988.HK) HKD 2.037 billion; Tencent Holdings (0700.HK) HKD 0.679 billion; Geely Automobile (00175.HK) HKD 0.248 billion.

Significantly net sold: SMIC (00981.HK) HKD 0.878 billion; China National Offshore Oil (00883.HK) HKD 0.703 billion; Changfei Optical Fiber (06869.HK) HKD 0.169 billion.

Geely Automobile rose 6.43% today, with funds increasing their holdings by 6.559 million shares in the past 5 days, showing accelerated short-term inflow.

Changfei Optical Fiber rose 5.49%, with funds reducing their holdings by 2.71 million shares in the past 5 days, primarily showing outflow.

(Caixin Global, Feng Yi)