Track the latest dynamics of southbound capital flows.
On February 9, southbound capital recorded a net sell of HK$1.887 billion in Hong Kong stocks today.
Notably, there was a net purchase of Tencent Holdings at HK$1.8 billion, CSOP Hang Seng Tech Index ETF at HK$639 million, Xiaomi Group-W at HK$209 million, Yangtze Optical Fibre and Cable at HK$168 million, Hua Hong Semiconductor at HK$149 million, and SMIC at HK$147 million. On the other hand, there were net sales of Tracker Fund of Hong Kong at HK$4.555 billion, Hang Seng China Enterprises Index ETF at HK$1 billion, Kuaishou-W at HK$568 million, and China Mobile at HK$199 million.
According to statistics, southbound funds have consecutively purchased Xiaomi for 8 days, totaling HK$3.82029 billion; Tencent for 6 days, totaling HK$17.192 billion; Alibaba for 4 days, totaling HK$4.43042 billion; and Pop Mart for 4 days, totaling HK$1.22911 billion.
Northern Water Trends
Tencent Holdings: In terms of news, JPMorgan believes that Tencent's AI products are more cautious compared to peers, triggering market concerns over potential valuation compression. The firm asserts that Tencent’s most enduring asset is not any single AI capability but rather its distribution and engagement, which tend to compound over time, allowing new capabilities including AI to scale at a lower user acquisition cost than competitors.
Pop Mart: According to a research report by CITIC Securities, Pop Mart has established a 'one superpower, multiple strong' IP portfolio. Labubu remains influential while newer IPs like Starry People and Crybaby drive high growth. Production capacity for plush products is expected to reach more than five times the 2025 level by 2026. Store density in the U.S. and Europe remains far below mature brands like Lego, with significant expansion opportunities in South America and the Middle East. The company’s medium-term growth path is clear.
Kuaishou: The company announced a partnership with CCTV's 2026 Spring Festival Gala. Users can search for “Spring Festival Gala” on Kuaishou to pre-register for live streaming of the Year of the Horse gala. During the event, Kuaishou will present the full content of the 2026 CCTV Spring Festival Gala through live streams, on-demand playback, and short videos, while also enabling viewers to revisit past galas. To meet the diverse viewing needs of global Chinese audiences during the holiday, Kuaishou will also launch a red envelope interactive campaign where users can shake their phones to receive red envelopes. On New Year's Eve, there will be an all-day red envelope rain, adding extra festive excitement for users.
Yangtze Optical Fibre and Cable: In terms of news, Huayuan Securities noted that optical fiber prices have been experiencing a moderate increase for about six months, with G.652.D bare fiber prices rising from less than RMB20 per core kilometer. The price acceleration began in early 2026. The primary reason lies in the reversal of supply and demand dynamics: supply-side capacity continues to decline while demand is driven by accelerated AI data center construction, resulting in a shortage of various types of optical fibers. The firm believes that the optical fiber and cable sector will continue to see upward momentum and expects improved performance as prices rise.
JunDa Shares: In terms of news, according to the National Enterprise Credit Information Publicity System, the controlling shareholder of Shanghai Fuyao Xinghe has changed to JunDa Shares with a 60% stake, and the legal representative has been changed to Zheng Hongwei, vice chairman of JunDa Shares. Xun Tian Qian He, a wholly-owned subsidiary of Shanghai Fuyao Xinghe, is a leading domestic satellite manufacturer.
