Mainland investor activity in the Hong Kong stock market on June 26 resulted in a net outflow of HK$2.504 billion. The Shanghai-Hong Kong Stock Connect channel recorded a net inflow of HK$3.586 billion, while the Shenzhen-Hong Kong Stock Connect channel saw a net outflow of HK$6.09 billion.
The stocks receiving the most net buying from mainland funds were KB Laminates Holdings Ltd (HKEX: 01888), Yangtze Optical Fibre and Cable Joint Stock Limited Company (HKEX: 06869), and Knowledge Atlas (HKEX: 02513). Conversely, the most net sold stocks were Alibaba Group Holding Ltd (HKEX: 09988), Tencent Holdings Ltd (HKEX: 00700), and Semiconductor Manufacturing International Corporation (HKEX: 00981).
Key Targets for Mainland Investment
Active trading in the Shanghai-Hong Kong Connect saw significant net purchases of KB Laminates Holdings Ltd (HKEX: 01888) and Kingboard Holdings Ltd (HKEX: 00148), amounting to HK$2.306 billion and HK$222 million respectively. Over the past three weeks, the combined net inflow into these two stocks has approached HK$38 billion.
Citigroup published a research note commenting that a major shareholder's stake reduction in Kingboard Holdings Ltd led to a share price decline, with cumulative proceeds from the sale reaching approximately HK$8.944 billion. The bank's analysis suggests that despite near-term selling pressure, the company's vertically integrated business model is an advantage. Amid tight supply for copper-clad laminates and electronic-grade glass fiber cloth, the company has successfully attracted order transfers from downstream customers and has raised the average selling price of its printed circuit boards to pass on higher costs.
Other Significant Purchases
Yangtze Optical Fibre and Cable Joint Stock Limited Company (HKEX: 06869) received a net inflow of HK$1.241 billion. During the 2026 MWC Shanghai exhibition, the company announced that its hollow-core fiber has now achieved cumulative deliveries exceeding 10,000 core-kilometers. It has set multiple records, including for lowest attenuation at 0.04dB/km, longest single-draw length of 91.2 kilometers, and longest commercial link of 100 kilometers. With over 13 commercial and pilot projects deployed both domestically and overseas, it has become the world's most widely commercially deployed supplier of hollow-core fiber.
Knowledge Atlas (HKEX: 02513) attracted net buying of HK$487 million. The company launched its latest flagship model, GLM-5.2. Huachuang Securities noted in a recent report that the release and open-sourcing of GLM-5.2 further validates the company's technological leadership, engineering capabilities, and ecosystem expansion within the domestic large language model space. The report suggests the core value of AI coding is evolving from mere code generation to understanding projects, breaking down tasks, continuous debugging, and final delivery, a shift where Knowledge Atlas is strategically positioning itself.
Semiconductor Sector Activity
Hua Hong Grace Semiconductor Manufacturing Limited (HKEX: 01347) saw a net inflow of HK$211 million, while Semiconductor Manufacturing International Corporation (HKEX: 00981) experienced a net outflow of HK$161 million. Taiwan Semiconductor Manufacturing Company Ltd (NYSE: TSM) has reportedly begun notifying customers of price increases for its wafer foundry services. The hikes, covering all advanced process nodes from 3nm to 7nm and below, are expected to be in the range of 5% to 10%. Furthermore, the accelerated adoption of large AI models is driving a surge in demand for upstream chips. The maturation of the domestic computing ecosystem is poised to directly boost demand for local chip design firms, accelerating the import substitution process.
GigaDevice Semiconductor (Beijing) Inc (HKEX: 03986) received net buying of HK$55.77 million. The company issued an announcement regarding abnormal stock price fluctuations, stating that the memory chip industry is currently in an upward cycle. Significant price increases driven by supply shortages have boosted the company's operating performance. However, the memory industry has historically shown pronounced cyclical volatility, and supply and demand will eventually move towards rebalancing.
Major Stocks Facing Outflows
Alibaba Group Holding Ltd (HKEX: 09988) faced a substantial net outflow of HK$2.269 billion. The company has recently been confronted with multiple negative developments. Anthropic has accused Alibaba of illegally extracting core capabilities from its AI model Claude through a large number of fake accounts. Alibaba has formally filed a lawsuit in a US court seeking its removal from the "Chinese Military Companies" list. Additionally, Citigroup commented that this year's 618 shopping festival is likely to be the most subdued and平淡 in the past 16 years. Furthermore, Tencent Holdings Ltd (HKEX: 00700) saw a net outflow of HK$341 million.
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