---
title: "The Hang Seng Index fell, with northbound capital outflow expanding to over 7.3 billion; Alibaba and Tencent are weak"
description: "Today is the futures settlement day for Hong Kong stocks. The Hang Seng Index opened higher but fell back, closing down 384 points or 1.4%, at 26,381 points. Southbound funds had a net outflow of HKD "
type: "news"
locale: "en"
url: "https://longbridge.com/en/news/277014940.md"
published_at: "2026-02-26T09:20:19.000Z"
---

# The Hang Seng Index fell, with northbound capital outflow expanding to over 7.3 billion; Alibaba and Tencent are weak

> Today is the futures settlement day for Hong Kong stocks. The Hang Seng Index opened higher but fell back, closing down 384 points or 1.4%, at 26,381 points. Southbound funds had a net outflow of HKD 7.366 billion, and technology stocks performed poorly, with Alibaba and Tencent dropping 3.6% and 2% respectively. CKI Holdings' stock price rose 4.5% due to the sale of a UK distribution company. The total market turnover was HKD 259.277 billion

Today (26th), the Hong Kong stock market is on futures settlement day, initially rising before falling, dragged down by weak technology and internet stocks. The Dow Jones and Nasdaq in the US rose by 0.6% and 1.3% respectively on the night of the 25th. At the time of writing, the yield on the US 2-year Treasury bond fell to 3.469%, while the yield on the US 10-year Treasury bond rose to 4.052%, and the US dollar index stood at 97.71. The latest Dow futures fell by 102 points or 0.2%, and Nasdaq futures fell by 27 points or 0.1%. The Shanghai Composite Index fell less than 1 point throughout the day, closing at 4,146 points, the Shenzhen Component Index rose by 0.2%, the ChiNext Index fell by 0.3%, and the total trading volume of the Shanghai and Shenzhen markets was nearly 2.54 trillion yuan.

The Hang Seng Index opened high at 254 points before declining, at one point falling by 392 points to a low of 26,373 points, closing down 384 points or 1.4% at 26,381 points; the Hang Seng China Enterprises Index fell by 220 points or 2.4%, closing at 8,814 points; the Hang Seng Tech Index fell by 151 points or 2.9%, closing at 5,109 points. The total trading volume for the day was 259.277 billion yuan. The total trading volume of northbound funds was 99.929 billion yuan, while southbound funds had a net outflow of 7.366 billion yuan today (net outflow of 4.057 billion yuan on the previous trading day). Chinese insurance stocks weakened, with Ping An (02318.HK) falling by 4.6% to close at 67.85 yuan, and China Life (02628.HK) down by 4.1%.

CKI Holdings (01038.HK) led a consortium to sell the UK distribution company UKPN, with an enterprise value estimated at 176.8 billion yuan. CKI Holdings' stock price rose by 4.5%, CLP Holdings (00006.HK) rose by 3.8%, and Cheung Kong Holdings (01113.HK) increased by 3%.

【Northbound funds continue to flow out, tech stocks turn bearish】

Large tech stocks turned bearish, with Alibaba-W (09988.HK) stock price declining by 3.6% to close at 143 yuan, with a trading volume of 14.31 billion yuan. Tencent (00700.HK) stock price fell by 2% to close at 512 yuan, with a trading volume of 13.216 billion yuan. Meituan-W (03690.HK) fell by 2.7%, and Baidu-SW (09888.HK) will announce its fourth-quarter results after the market closes, with its stock price declining by 4.3% throughout the day. Haitong International published a report predicting that Alibaba's customer management revenue (CMR) growth for the third quarter of fiscal year 2026 (ending December last year) will be weak, and based on flash purchase business subsidy factors, it lowered its net profit forecast for the third quarter from 39.9 billion yuan to 29 billion yuan, while also expecting profit margins to remain under pressure and increased marketing expenses for the Qianwen App, lowering its full-year net profit forecast for fiscal year 2026 from 115.7 billion yuan to 93.6 billion yuan.

UBS published a report stating that global commodity prices are expected to rise by 9% in 2025, continuing to increase this year. For many Chinese companies, higher input costs present a dilemma—either raise prices or endure declining profit margins. The bank's industry analysts conducted a "bottom-up" survey showing that more companies are inclined to raise prices this year, and the vast majority of industries expect a better revenue pricing trend compared to last year The bank estimates that if companies are unable to raise prices this year, the MSCI China Index EBIT may decline by about 7%; however, if China moves towards "re-inflation," the bank sees a 20% upside potential (16% from valuation re-evaluation and 3% to 4% from stronger earnings per share growth). The bank recommends "reducing positions" in the mainland internet sector, removing NetEase (NTES.US), due to ongoing uncertainties from regulation and AI disruption. Nevertheless, the bank still believes that Tencent and Alibaba are the best ways to capture the commercialization path of AI and large language models in China.

【Declining stocks over 1,400, Hong Kong Stock Exchange remains stable】

The Hong Kong stock market has turned weaker, with a rise and fall ratio of 17 to 34 for main board stocks (compared to 26 to 23 the previous day), with 1,414 declining stocks (a drop of 2.7%). Today, 17 constituent stocks of the Hang Seng Index rose, while 71 fell, with a rise and fall ratio of 19 to 81 (compared to 48 to 48 the previous day). The market recorded short selling of HKD 43.281 billion today, accounting for 20.01% of the total turnover of shortable stocks, which was HKD 216.296 billion.

Hong Kong Stock Exchange (00388.HK) saw its stock price rise by 0.8% to close at HKD 415.4. The Hong Kong Stock Exchange announced its 2025 fiscal year results at noon, reporting a net profit of HKD 17.754 billion, a year-on-year increase of 36%, setting a new record and exceeding the upper limit of the forecast range of HKD 16.721 billion to HKD 17.346 billion from seven brokerages; basic earnings per share were HKD 14.05. EBITDA recorded HKD 22.796 billion, a year-on-year increase of 40%, with an EBITDA profit margin of 79%, up 5 percentage points from 2024. The Hong Kong Stock Exchange declared a second interim dividend of HKD 6.52 per share, an increase of 33% from HKD 4.9 in the same period last year. Together with the first interim dividend of HKD 6 per share, the total annual dividend is HKD 12.52 per share, a 35% increase from the total dividend of HKD 9.26 in 2024, with a payout ratio maintained at 90%.

Citigroup issued a report stating that the Hong Kong Stock Exchange announced a net profit attributable to shareholders of HKD 4.3 billion for the fourth quarter of 2025, a quarterly decline of 12% but a year-on-year increase of 15%, exceeding market consensus by 16%. Core revenue was HKD 5.5 billion, down 12% quarter-on-quarter but up 17% year-on-year, exceeding market expectations by 2%, mainly driven by increased listing fees and custody fees

### Related Stocks

- [TCTZF.US - Tencent Holdings Limited](https://longbridge.com/en/quote/TCTZF.US.md)
- [01038.HK - CKI HOLDINGS](https://longbridge.com/en/quote/01038.HK.md)
- [BABA.US - Alibaba](https://longbridge.com/en/quote/BABA.US.md)
- [00HSI.HK - Hang Seng Index](https://longbridge.com/en/quote/00HSI.HK.md)
- [09988.HK - BABA-W](https://longbridge.com/en/quote/09988.HK.md)

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> **Disclaimer**: This article is for reference only and does not constitute any investment advice.