On July 20th, the Hong Kong stock market saw a net outflow of 5.962 billion Hong Kong dollars from mainland capital through the Stock Connect programs.
The Shanghai-Hong Kong Stock Connect recorded a net outflow of 3.165 billion Hong Kong dollars, while the Shenzhen-Hong Kong Stock Connect saw a net outflow of 2.798 billion Hong Kong dollars.
The top recipients of net buying from northbound capital were Alibaba Group Holding Ltd (BABA-W) (09988), NetEase Inc (NTES-S) (09999), and Meituan (MEITUAN-W) (03690).
The securities that saw the heaviest net selling were the Tracker Fund of Hong Kong (02800), the CSOP Hang Seng TECH Index ETF (03033), and Tencent Holdings Ltd (00700).
Alibaba Group Holding Ltd (BABA-W) (09988) received net purchases totalling 1.863 billion Hong Kong dollars.
On July 19th, the company unveiled a preview of its flagship large language model, Qwen3.8 Max, boasting a parameter count of 2.4 trillion.
The company has positioned it as one of the most powerful models currently available, comparable to leading frontier AI models and second only globally to Anthropic's Fable 5.
Concurrently, Alibaba pledged to open-source the full model weights "soon."
NetEase Inc (NTES-S) (09999) attracted net buying of 1.408 billion Hong Kong dollars.
An analysis report from CICC suggested that the company's overall performance in the second quarter is expected to be solid, with deferred revenue from the PC version of "Fantasy Westward Journey" bolstering income.
However, given that updates and events for flagship products were concentrated near the end of June, more significant contributions are anticipated to materialize in the third quarter.
Regarding gross margin, benefiting from a higher proportion of revenue from high-margin self-developed PC games and optimized channel commission costs, it is projected to remain at an elevated level for the second quarter.
Meituan (MEITUAN-W) (03690) saw net inflows of 471 million Hong Kong dollars.
Meituan announced the official open-sourcing of the entire LongCat-2.0 model weights, its inference engine, and core technical documentation.
A Citigroup research note stated that Meituan's decision to open-source its trillion-parameter model LongCat-2.0 is a strategic move believed to further solidify its leadership in the local life services market.
The model's advanced Agentic architecture is expected to enhance internal R&D efficiency and attract external developers.
CNOOC Ltd (00883) received net buying of 39.54 million Hong Kong dollars.
Ping An Securities noted that the recent escalation in US-Iran tensions and the renewed blockade of the Strait of Hormuz, coupled with recovering seasonal demand for refined oil products, have pushed oil prices back into an upward trend.
However, the firm believes the intensity and duration of this round of conflict may be weaker than the initial outbreak phase, with overall geopolitical risk directionally easing, potentially leading Brent crude prices to retreat to around $80 per barrel subsequently.
AI hardware stocks continued to face selling pressure.
Hua Hong Semiconductor Ltd (01347), Kingboard Laminates Holdings Ltd (01888), Semiconductor Manufacturing International Corporation (00981), and Yangtze Optical Fibre and Cable Joint Stock Limited Company (06869) suffered net outflows of 96.29 million, 290 million, 380 million, and 468 million Hong Kong dollars, respectively.
This follows actions by South Korean regulators to address irregularities in leveraged ETFs tied to such chip stocks.
A recent report from J.P. Morgan's global market strategy team indicated that the investor deleveraging process initiated in the US in June is still ongoing.
There remains room for further deleveraging across three areas: leveraged equity ETFs, the options market, and margin accounts, which is expected to continue weighing on stock market performance in the coming months.
The CSOP Hang Seng TECH Index ETF (03033) and the Tracker Fund of Hong Kong (02800) experienced net selling of 1.278 billion and 5.185 billion Hong Kong dollars, respectively.
Soochow Securities commented that the Hong Kong market is currently in a catch-up window, with short-term risk appetite recovery driving index rebounds, but the sustainability of the rally still faces disturbances.
Huatai Securities views the current rebound in Hong Kong stocks as being driven more by capital flow dynamics, specifically global style rebalancing needs prompting short covering, leading to a rapid technical rebound from oversold sentiment levels.
Additionally, GigaDevice Semiconductor (Beijing) Inc (03986) and Zhipu AI (02513) received net inflows of 311 million and 310 million Hong Kong dollars, respectively, while Tencent Holdings Ltd (00700) saw net outflows of 580 million Hong Kong dollars.
Comments