On May 6, the Hong Kong stock market experienced a net outflow of HK$8.565 billion from northbound capital. Specifically, the Shanghai-Hong Kong Stock Connect recorded a net sell-off of HK$1.361 billion, while the Shenzhen-Hong Kong Stock Connect saw a net outflow of HK$7.204 billion. The stocks that attracted the most net buying were CIG (06166), SMIC (00981), and CNOOC (00883). In contrast, the Tracker Fund (02800), TENCENT (00700), and the Hang Seng China Enterprises Index Fund (02828) faced the heaviest net selling.
Among actively traded stocks, CIG (06166) received a net purchase of HK$144 million. The company had previously disclosed its first-quarter results, reporting revenue of RMB 1.287 billion, a year-on-year increase of 43.98%. Net profit attributable to shareholders reached RMB 118 million, surging 276.44% compared to the same period last year. This strong performance was primarily driven by a significant expansion in its high-speed optical module business, fueled by robust global demand for 800G and 1.6T high-speed optical modules from data centers.
Semiconductor stocks showed a mixed performance. SMIC (00981) attracted a net purchase of HK$79.25 million, while Hua Hong Semiconductor (01347) experienced a net sell-off of HK$168 million. The recent launch of DeepSeek's new flagship model, DeepSeek-V4, which was made open-source, has drawn attention. Eastern Securities noted that the model's strong performance and cost-effectiveness could enhance the global competitiveness of domestic AI models, potentially boosting demand for AI applications at lower costs and thereby benefiting the domestic computing chip and semiconductor equipment supply chain.
Alibaba (09988) and TENCENT (00700) saw net outflows of HK$89.14 million and HK$2.396 billion, respectively. Huachuang Securities indicated that as the internet earnings season begins in May, market sentiment toward profit recovery in e-commerce and local services remains cautious. While new AI model releases are expected to benefit the medium-term efficiency and commercialization of internet platforms, these advantages have yet to be reflected in financial results. In the short term, market sentiment may outweigh fundamental improvements, with the sustainability of any rebound depending on the actual delivery of profits. Additionally, recent earnings reports from overseas internet giants have continued to validate strong downstream AI demand and the certainty of AI-related capital expenditures converting into revenue.
Changfei Optical Fiber & Cable (06869) faced a net sell-off of HK$266 million. UBS commented that the company's first-quarter net profit of RMB 495 million fell short of market expectations, which had anticipated between RMB 800 million and RMB 1 billion. The bank expects a negative market reaction in the near term but remains confident in the company's profit growth over the coming quarters, citing that the full impact of rising fiber prices will take time to materialize and that sustained demand from data centers should help the company meet full-year forecasts.
The Hang Seng China Enterprises Index Fund (02828) and the Tracker Fund (02800) experienced net outflows of HK$741 million and HK$3.739 billion, respectively. China Merchants Research suggested that amid expectations of easing geopolitical tensions, the fundamentals of Hong Kong-listed companies may see marginal improvement. Combined with the benefits of looser overseas liquidity due to a declining US dollar index, the market is likely to maintain a gradual upward trend. However, the pace of recovery may be slow, and overall market performance might lag behind that of A-shares. Meanwhile, CNOOC (00883) received a net purchase of HK$9.9 million.
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