HK Stock Connect Daily Report: HSI Quarterly Review Sparks HKD 38.6 Billion Fund-Flow Expectation; Jack Ma Boosts Alibaba Stake by Over HKD 600 Million in Consecutive Days - 20260826

I. Market Overview

On August 26, the three major Hong Kong indices rose collectively, with the Hang Seng Index up 0.56% to 25,652.97 points, the Hang Seng TECH Index up 0.82%, and the Hang Seng China Enterprises Index up 1.05%. Full-day turnover was HKD 254.824 billion, slightly higher than the previous trading day.

On the market, copper-mining stocks led the gains, with JIANGXI COPPER (00358.HK) up 9.92%, as London copper hit a record closing high. Most China-concept brokerage stocks rose, with CICC (03908.HK) up 8.25%, as listed brokerages entered a phase of concentrated earnings realization. Quality-earnings stocks performed strongly, with INNOVENT BIO (01801.HK) up 9.69% and ANTA SPORTS (02020.HK) up 9.53%, as the dense interim-report disclosure period drew to a close. Oil & gas stocks came under broad pressure as the US and Iran sent conciliatory signals on navigation through the Strait of Hormuz, driving international oil prices sharply lower.

Southbound capital recorded a net buy of HKD 6.453 billion on the day. Within that, Stock Connect (Shanghai) saw a net sell of HKD 1.125 billion and Stock Connect (Shenzhen) a net buy of HKD 1.577 billion.

II. HK Stock Connect Stock Rankings

2.1 HK Stock Connect Stock Gainers and Decliners

Source: Wind, HKEX. The content of this article is for the objective presentation of data only and does not constitute any investment advice, nor does it represent a recommendation for or value judgment on any security. The market involves risks; investment requires caution.

2.2 HK Stock Connect Active Stocks (ranked by southbound turnover)

Source: Wind, HKEX. The content of this article is for the objective presentation of data only and does not constitute any investment advice, nor does it represent a recommendation for or value judgment on any security. The market involves risks; investment requires caution.

III. HK Stock Connect-related A-share ETF Rankings

3.1 HK Stock Connect-related A-share ETF Gainers and Decliners

Source: Wind. The content of this article is for the objective presentation of data only and does not constitute any investment advice, nor does it represent a recommendation for or value judgment on any security. The market involves risks; investment requires caution.

3.2 HK Stock Connect-related A-share ETF Active Rankings (ranked by turnover)

Source: Wind. The content of this article is for the objective presentation of data only and does not constitute any investment advice, nor does it represent a recommendation for or value judgment on any security. The market involves risks; investment requires caution.

IV. Industry and Corporate Updates

1. SPDB International: HSI quarterly review expected to trigger HKD 38.6 billion in fund flows; 54 stocks likely to enter Stock Connect in September

On August 26, SPDB International published a research report stating that the quarterly review results announced by Hang Seng Indexes Company on August 21 will take effect on September 7. The Hang Seng Index will add HUA HONG GRACE (01347.HK) and WEICHAI POWER (02338.HK); the Hang Seng TECH Index will add ILUVATAR COREX (09903.HK) and remove TONGCHENGTRAVEL (00780.HK). Passive funds tracking the three major indices have a combined scale of approximately HKD 796.3 billion, expected to bring about HKD 38.6 billion in two-way fund flows. The Hang Seng Composite Index will add 61 companies this time, of which 54 stocks including XIZHI TECH-P (01879.HK), HENLIUS (02696.HK) and SIGENERGY (06656.HK) are expected to be included in Stock Connect on September 7.

2. Jack Ma boosts Alibaba stake by over HKD 600 million in consecutive days; Joseph Tsai and Eddie Wu combined add HKD 120 million

On August 24, HKEX disclosure showed that after ALIBABA-W announced its HKD 80 billion new share placing plan, group chairman Joseph Tsai bought 720,000 shares at an average price of ~HKD 112, costing ~HKD 80 million; CEO Eddie Wu bought 350,000 shares at an average price of ~HKD 111.6, costing ~HKD 40 million, the two together increasing their holdings by ~HKD 120 million. On August 25, according to market news, founder Jack Ma has been increasing his Alibaba HK-share holdings for consecutive days, with the total exceeding HKD 600 million. The cumulative increase by Jack Ma and management recently has exceeded HKD 800 million. ALIBABA-W is a Stock Connect constituent.

3. STAR SPORTS MED included in Hang Seng Composite Index, expected to enter Stock Connect next month

On August 24, STAR SPORTS MED (01609.HK) released a voluntary announcement that, based on the quarterly review results announced by Hang Seng Indexes Company on August 21, the company has been selected for inclusion in the Hang Seng Composite Index constituents, effective September 7. Upon inclusion, the company's shares are expected to meet the inclusion criteria for Shanghai-Hong Kong Stock Connect and Shenzhen-Hong Kong Stock Connect trading. The company also disclosed its interim results on the same day, with first-half revenue of approximately RMB 163 million, up 21.6% year-on-year; adjusted net profit of approximately RMB 48.897 million, up 24.3% year-on-year. The company also announced a planned repurchase of up to 2.9 million H shares, representing approximately 5.29% of the issued H shares.

4. JIASHILI GP issues positive profit alert, interim net profit expected to rise ~640% to 663%

On the evening of August 25, JIASHILI GP (01285.HK) released a positive profit alert, expecting interim net profit of approximately RMB 58.9 million to 61 million for the first half, up approximately 640% to 663% year-on-year. The growth was mainly due to an increase in sales revenue of approximately RMB 60.3 million during the period; reduced administrative and selling expenses year-on-year under a lean-management strategy; and stable global commodity markets, with lower raw-material costs driving higher gross profit. JIASHILI GP is a Stock Connect constituent.

5. INNOGEN-B plans to spend HKD 50 million repurchasing H shares

On August 26, INNOGEN-B (02591.HK) announced that it plans to repurchase H shares on the Main Board of The Stock Exchange of Hong Kong through on-market transactions from August 26, 2026 until the next annual general meeting, for a total amount of approximately HKD 50 million. The repurchased H shares will be registered as treasury shares, intended for the company's share incentive plan and/or cancellation. INNOGEN-B is a Stock Connect constituent.

V. Market Notes

Eligible securities list adjustment announcement

No new announcements.

Trading calendar

No approaching market closure days.

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