Mainland Investors Boost Stakes in Han's CNC, Zhejiang Shibao via Stock Connect

Mainland Chinese investors increased their holdings in technology hardware firm Han's CNC (03200.HK) and auto parts manufacturer Zhejiang Shibao (01057.HK), according to data for September 3rd from the Hong Kong Stock Connect program. Conversely, biotech firm Joinn Laboratories (06127.HK) experienced the largest single-day reduction in ownership percentage from these investors.

Daily Capital Flow Highlights

The most significant inflows from mainland investors, measured as a percentage of the companies' total issued shares, were concentrated in the technology and industrial sectors. The data, which reflects trades on a T+2 settlement basis, showed notable increases in the following stocks:

• Han's CNC (03200.HK): Holding percentage increased by +1.42%, bringing the total mainland stake to 31.42%.
• Zhejiang Shibao (01057.HK): Saw a +1.32% increase, with total holdings reaching 57.32%.
• Unisound (09678.HK): Experienced a +1.13% rise in its mainland investor stake, now at 15.25%.

On the other hand, several companies saw a notable decrease in their Southbound holdings. The largest net reductions were:

• Joinn Laboratories (06127.HK): Ownership fell by -0.88% to 52.02%.
• Black Sesame International (02533.HK): Holdings were reduced by -0.81% to 30.80%.
• Chinasoft International (00354.HK): Saw a -0.64% decrease, with the total stake now at 34.42%.

Longer-Term Trends

Ad

Analyzing flows over a five-day period provides broader context on investor sentiment. The CSOP HK Hang Seng K-Pop and K-Drama ETF (03431.HK) saw the largest increase, with its mainland-held portion rising by +8.15%. This was followed by consumer staples company Haitian Flavouring & Food (03288.HK), which saw a +5.30% increase.

Over the same five-day period, medical imaging company Yimai Sunshine (02522.HK) recorded the most significant outflow, with its holding percentage dropping by -5.30%. First Tractor Company (00038.HK) and Joinn Laboratories (06127.HK) also saw sustained selling pressure, with holdings decreasing by -4.09% and -2.53%, respectively.

Market Implications

These shifts in holdings via the Southbound Stock Connect are a key barometer for mainland Chinese investor sentiment toward specific Hong Kong-listed equities. The daily and weekly data indicates targeted buying in technology and select industrial names, while revealing consistent divestment from certain healthcare and agricultural machinery stocks.

Data over a 20-day trading window further highlights these trends, with CITIC Securities (06030.HK) and Joinn Laboratories seeing the largest reductions of -8.66% and -8.56% respectively. This suggests a more structural shift in positioning by mainland funds away from these names in recent weeks.