On August 20, the Hong Kong stock market witnessed southbound trading post a net selloff of HK$10.412 billion. Specifically, the Shanghai-Hong Kong Stock Connect recorded a net sell of HK$5.111 billion, while the Shenzhen-Hong Kong Stock Connect saw a net sell of HK$5.301 billion. The top net buying targets were Alibaba-W (09988), KUAISHOU-W (01024), and GENSCRIPT BIO (01548). Conversely, the largest net selling targets included Tracker Fund (02800), CSPC PHARMA (01093), and Tencent (00700).
Alibaba-W (09988) attracted a net inflow of HK$2.205 billion. Post-market, Alibaba released its earnings report, revealing first-quarter revenue of RMB 268.95 billion for fiscal year 2027, up 9% year-over-year, slightly above the RMB 268.52 billion estimate. However, adjusted net profit came in at RMB 20.72 billion, falling short of the RMB 25.58 billion projection, with adjusted earnings per ADS at RMB 8.52 versus the RMB 11.28 estimate. For the quarter ending June 30, capital expenditures surged 75% year-over-year to RMB 67.678 billion, up from RMB 38.676 billion in the same period last year.
KUAISHOU-W (01024) saw a net purchase of HK$1.143 billion. In its financial report, Kuaishou disclosed that its Kling AI segment generated over RMB 850 million in revenue during the second quarter, marking a year-over-year surge of more than 200% and a sequential growth of 30.8%. Core commercial revenue, which includes online marketing services and other services led by e-commerce and Kling AI, rose 7.4% year-over-year to a combined RMB 26.845 billion.
Healthcare stocks showed notable divergence today. GENSCRIPT BIO (01548) and WUXI BIO (02269) each recorded net inflows of HK$205 million and HK$91.83 million, respectively. In contrast, CSPC PHARMA (01093) faced a significant net outflow of HK$1.091 billion. On August 19, Moderna and Merck announced that their personalized mRNA cancer vaccine, in combination with Keytruda, met the primary endpoint in an interim analysis of a Phase 3 melanoma trial. This marks the first personalized mRNA cancer vaccine to demonstrate efficacy in a late-stage study globally. Analysts suggest that as leading overseas products advance clinically, a wave of tumor mRNA pipelines will likely enter clinical development worldwide, driving sustained demand for upstream raw materials and contract manufacturing services.
Tracker Fund (02800) saw a net sell of HK$2.758 billion. Industrial Securities noted that the recent rally in Hong Kong stocks is primarily driven by low-valuation recovery, capital rebalancing, and extreme sentiment reversal, rather than a broad-based rally fueled by widespread earnings upgrades. Huatai Securities added that further valuation gains would require either more concrete AI progress and earnings delivery from Hong Kong-listed companies, or stronger domestic policy support and improved recovery expectations. Additionally, SMIC (00981) and Tencent (00700) experienced net outflows of HK$350 million and HK$408 million, respectively.
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