On August 19 in the Hong Kong stock market, southbound trading recorded a net selloff of HK$10.62 billion. Specifically, the Shanghai-Hong Kong Stock Connect saw net selling of HK$3.31 billion, while the Shenzhen-Hong Kong Stock Connect experienced net selling of HK$7.31 billion.
The stocks attracting the highest net buying from southbound capital were TENCENT (00700) and GIGADEVICE (03986). Conversely, the most significant net selling was directed at HUA HONG GRACE (01347), the Tracker Fund (02800), and KB LAMINATES (01888).
Turning to active trading details, TENCENT (00700) secured net buying of HK$321 million. Notably, the official launch of "Wanqing·WorkBuddy," an AI-powered office solution for Guangdong's government systems, was announced. "Wanqing" serves as the provincial-level intelligent hub platform, and this new application integrates Tencent's WorkBuddy AI agent capabilities with specific government workflows. Multiple provincial departments have already initiated pilot projects and scenario integration.
GIGADEVICE (03986) received net buying of HK$137 million. The company reported first-half revenue of RMB 11.57 billion, a year-on-year increase of 178.67%. Net profit attributable to shareholders surged 1,091.50% to RMB 6.86 billion, while non-GAAP net profit climbed 796.90% to RMB 4.88 billion. Operating cash flow also improved significantly, rising 531.47% year-on-year to RMB 6.05 billion.
On the selling side, CHINA UNICOM (00762) experienced a net selloff of HK$267 million. The telecom operator posted first-half revenue of RMB 201.4 billion, up 0.6% year-on-year, but core business revenue dipped 0.2% to RMB 178 billion. Net profit attributable to shareholders fell 34.8% to RMB 4.1 billion, with total profit down 36.6% to RMB 11.2 billion. The company also announced no interim dividend for 2026, attributing profit fluctuations to VAT adjustments and changes in labor cost investment pacing, while projecting a significantly narrower decline in full-year profits.
Several AI hardware and semiconductor stocks faced substantial outflows. YOFC (06869) saw net selling of HK$442 million, SMIC (00981) recorded outflows of HK$511 million, KB LAMINATES (01888) had net selling of HK$906 million, and HUA HONG GRACE (01347) experienced the heaviest selloff at HK$2.97 billion. These moves come amid concerns following OpenAI's second-quarter results, which showed 18% revenue growth to US$6.7 billion but widening losses and growth lagging behind competitor Anthropic. The generative AI sector is rapidly transitioning from a pure "scale competition" phase to a new stage emphasizing commercial viability and return on investment considerations.
The Tracker Fund (02800) also saw significant net selling of HK$1.79 billion. According to market analysis, domestic fundamentals, earnings expectations, and incremental capital are emerging as more critical pricing variables. The current baseline scenario remains one of "index consolidation with structural opportunities," as sustained upward trends will require improvements in domestic demand, earnings growth, and continued inflows from both southbound and foreign investors.
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