On July 2nd, the Hong Kong stock market witnessed a net outflow of HK$19.74 billion from mainland capital through the Stock Connect programs.
Specifically, the Shanghai-Hong Kong Stock Connect recorded a net inflow of HK$22.77 billion, while the Shenzhen-Hong Kong Stock Connect saw a net outflow of HK$42.51 billion.
Top Net Buys and Sells
The stocks receiving the largest net purchases from northbound capital were UBTECH ROBOTICS (09880), KNOWLEDGE ATLAS (02513), and BABA-W (09988). Conversely, the most heavily net-sold stocks were HUA HONG GRACE (01347), KB LAMINATES (01888), and KINGBOARD HLDG (00148).
Key Purchases Detailed
UBTECH ROBOTICS (09880) attracted a net buy of HK$396 million. This follows a recent global launch event, with analysts noting this year marks a shift from early-stage development to scaling and commercialization for humanoid robots and embodied AI. The company has significantly raised its 2024 shipment forecast for its ultra-bionic humanoid robots to approximately 20,000 units, up from a prior estimate of 7,000-8,000. Reportedly, the U1 series has already secured 13,400 orders as of June 30th, with deliveries scheduled to begin from September 16th and overseas expansion planned for next year.
KNOWLEDGE ATLAS (02513) received a net inflow of HK$337 million. The company recently released its open-source weight model, GLM-5.2. Several researchers suggest its performance in certain vulnerability discovery and cybersecurity testing scenarios is comparable to Anthropic's advanced model, Mythos, indicating China's AI models are rapidly closing the gap with leading US counterparts in specialized capabilities.
BABA-W (09988) was bought to a net tune of HK$301 million. Reports indicate Alibaba plans to integrate the capabilities of "Wukong" and "MuleRun" based on QoderWork to create a new AI product targeting enterprise productivity scenarios. The new product will be overseen by Chen Yusen. Alibaba has stated that existing services for QoderWork, Wukong, and MuleRun will be seamlessly upgraded in the future, with all user benefits unaffected.
YOFC (06869) saw a net purchase of HK$177 million. During its 2025 annual general meeting on June 30th, the company's executive director and president, Zhuang Dan, stated that AI-related computing infrastructure is expected to maintain high investment levels for the next three to five years. The duration of the current optical fiber shortage will depend on the balance between supply and demand. He emphasized focusing on internal strength to secure a larger market share amid strong AI demand.
Major Sales Breakdown
SMIC (00981) and HUA HONG GRACE (01347) faced net selling of HK$604 million and HK$1.719 billion, respectively. This selling pressure is linked to news that Meta is developing a new cloud business plan to sell computing resources to external clients, leading some in the market to speculate about potential computing power oversupply and reduced capital expenditure by major firms. However, some institutions argue this does not signal a slowdown in foundational model R&D or investment, noting Meta, unlike other major North American cloud service providers, lacks a mature cloud service and cannot optimally allocate computing power based on its own and market demand.
KB LAMINATES (01888) and KINGBOARD HLDG (00148) were heavily net sold for HK$1.413 billion and HK$758 million, respectively. Reports indicate Samsung Electronics and SK Hynix are negotiating prices for second-half deliveries with upstream substrate suppliers. Additionally, while market concerns about overbuilding in AI infrastructure persist, some analysts view this as a buying opportunity. They believe these companies still have significant room for earnings upgrades in 2026-2027, benefiting from further AI fabric capacity expansion before the end of 2026 and potential certification of their copper-clad laminate products by NVIDIA around mid-2027.
In other notable flows, GIGADEVICE (03986) received a net buy of HK$92.92 million, while TENCENT (00700) was net sold to the amount of HK$503 million.
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