On May 7, Hong Kong's stock market saw northbound capital record a net selloff of HK$4.797 billion. Within this, the Shanghai-Hong Kong Stock Connect recorded a net selloff of HK$2.095 billion, while the Shenzhen-Hong Kong Stock Connect recorded a net selloff of HK$2.702 billion. The stocks with the highest net purchases by northbound capital were Semiconductor Manufacturing International Corporation (SMIC) (00981), Cambridge Industries Group (CIG) (06166), and Deepexi Technology (01384). The stocks with the highest net selloffs were Tencent Holdings (TENCENT) (00700), CNOOC (00883), and Hua Hong Semiconductor (01347).
Chip stocks showed divergent performance again. SMIC (00981) received a net purchase of HK$808 million, while Hua Hong Semiconductor (01347) faced a net selloff of HK$418 million. Market analysis suggests that US chip export controls have caused Nvidia's market share in China to plummet directly from 66% to 0%, thereby benefiting domestic chip manufacturers. Huayuan Securities believes that domestic AI large language models are currently in a period of accelerated development, which will drive the expansion of the domestic computing power market and increase its penetration rate. The domestic computing power sector maintains high prosperity, with chip, CPU, ODM manufacturers, IDC, and component supply chains all set to benefit from this growth wave.
Cambridge Industries Group (CIG) (06166) received a net purchase of HK$69.13 million. This follows news of Nvidia signing a long-term agreement with Corning. Corning plans to increase its US manufacturing capacity for optical connectivity tenfold and boost optical fiber production by more than 50%. It was reported that CIG's first-quarter net profit surged by 276.44% year-on-year. The primary driver for this high earnings growth was a significant increase in the scale of its high-speed optical module business, fueled by robust global demand for 800G and 1.6T high-speed optical modules from data centers.
Deepexi Technology (01384) received a net purchase of HK$54.95 million. The company recently announced that its AI employee agent for enterprises, DeepClaw, passed the China Academy of Information and Communications Technology's Trusted AI Assistant benchmark test. Furthermore, Zhongguancun Fengtai Park has collaborated with Deepexi Technology to deploy "Feng Xiao Zhi," the nation's first intelligent agent employee for government services.
Northbound capital continued to sell off technology and internet stocks. Alibaba-W (09988) and Tencent Holdings (00700) faced net selloffs of HK$410 million and HK$2.739 billion, respectively. Analysts note that May marks the beginning of the earnings season for internet companies, and the market remains cautious about profit recovery in e-commerce and local services sectors. While the release of new AI models is beneficial for the medium-term efficiency and commercial development of internet platforms, this potential still needs to be reflected in their financial results.
CNOOC (00883) experienced a net selloff of HK$517 million. This movement comes amid reports from Middle Eastern media, citing sources, that Iran and the US have reached a consensus on easing a US maritime blockade in exchange for a gradual reopening of the Strait of Hormuz. However, this news has not been confirmed by either the US or Iran. Influenced by these reports, international oil prices fell sharply, with both WTI and Brent crude dropping over 3%.
Comments