Mainland capital recorded a net purchase of HK$10.371 billion in the Hong Kong stock market on June 23rd.
Specifically, net purchases through the Shanghai-Hong Kong Stock Connect amounted to HK$7.085 billion, while the Shenzhen-Hong Kong Stock Connect saw net purchases of HK$3.286 billion.
The stocks that attracted the most significant net buying from mainland investors were Tracker Fund of Hong Kong (02800), SMIC (00981), and Kingboard Holdings Ltd. (00148).
Conversely, the stocks with the largest net outflows were Alibaba-W (09988) and Tencent (00700).
Key Purchases and Market Commentary
The Tracker Fund of Hong Kong (02800) received net inflows of HK$4.172 billion.
Analysis suggests that Hong Kong's corporate earnings in 2026 are expected to continue a structural recovery, with overall profit growth improving compared to 2025, although a divergent landscape is likely to remain the dominant theme.
Looking ahead to the second half of 2026, the Hong Kong market is seen as undervalued, currently navigating uncertainties, with long-term potential as the direction and a process of building momentum underway.
While a fundamental inflection point has been confirmed, market confidence and capital flows have yet to converge.
SMIC (00981) and Hua Hong Grace (01347) received net purchases of HK$2.471 billion and HK$520 million, respectively.
Industry forecasts project global foundry revenue to grow 24.8% year-on-year in 2026 to US$218.8 billion, with AI processor and supporting IC demand remaining a core driver.
Market observers believe that against a backdrop of a global semiconductor industry upcycle, overseas AI capacity constraints, the return of mature node orders, and domestic wafer fab capacity expansion, the foundry segment is poised to benefit continuously.
Kingboard Holdings Ltd. (00148) and KB Laminates (01888) saw net purchases of HK$1.052 billion and HK$277 million, respectively.
The PCB industry has entered a price hike cycle, characterized by high demand, full order books, and extended delivery times.
Analysts have frequently raised profit forecasts for KB Laminates, in which Kingboard Holdings holds a 62% stake, primarily due to higher-than-expected average selling price assumptions for copper-clad laminates (CCL) and electronic glass fiber cloth.
This is seen as sufficient to fully offset the recent impact of a share placement by KB Laminates, which reduced Kingboard Holdings' stake from 67% to 62%.
YOFC (06869) received net inflows of HK$515 million.
The supply of fiber preforms continues to fall short of demand, with global capacity utilization nearing full load.
Research indicates that YOFC has maintained the world's leading market share in its three core products—fiber preforms, optical fibers, and optical cables—for nine consecutive years since 2016, supported by deep technological expertise and a well-established production layout.
The company is well-positioned to benefit from the performance elasticity driven by the improving industry climate.
Knowledge Atlas (02513) attracted net buying of HK$437 million.
On June 17th, the company officially released and open-sourced its flagship model, GLM-5.2.
This model boasts 744 billion total parameters, 40 billion activated parameters, and supports a stable 1 million context window, demonstrating strong performance in handling long-range software engineering tasks.
Market views suggest that recent service limitations affecting certain international AI providers could create a window for trust migration towards domestic AI solutions, further highlighting the strategic value of leading local large model developers and the concept of sovereign AI.
Key Sales and Related Analysis
Tencent (00700) faced net selling of HK$99.73 million.
WeChat's native AI assistant, "Xiao Wei," has begun limited testing.
Analysts note that initial market reaction following the pilot launch has been muted.
This is seen as reflecting investor questions regarding WeChat's choice to adopt its in-house developed WeLM language model and concerns about the cost burden associated with large-scale computing inference upon a full-scale rollout.
Estimates suggest the additional inference costs could equate to approximately 5% to 17% of projected adjusted operating profit for the fourth quarter of 2026.
Regarding actual revenue potential, the view remains that long-term growth will primarily be linked to the existing online advertising market size.
Alibaba-W (09988) experienced net outflows of HK$1.252 billion.
Reports indicate this year's 618 shopping festival is likely the most subdued and low-key in the past 16 years.
Estimates suggest that total online GMV during the 618 period grew by only 3.2% year-on-year.
It is noted that due to Alibaba's significant reduction in investment in instant retail this year, the lack of aggressive subsidy competition across the industry has further contributed to the quieter nature of this year's 618 event.
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