On August 14, the Hong Kong stock market experienced a net southbound sell-off of HK$1.316 billion. The Shanghai-Hong Kong Stock Connect recorded a net buy of HK$287 million, while the Shenzhen-Hong Kong Stock Connect posted a net sell of HK$1.603 billion.
Among the most actively bought stocks were MINIMAX-W (00100), Z.AI (02513), and TENCENT (00700). The largest net sells were for BABA-W (09988) and HUA HONG GRACE (01347).
MINIMAX-W (00100) and Z.AI (02513) attracted net inflows of HK$1.364 billion and HK$1.321 billion, respectively. On August 8, DeepSeek announced a significant increase in API pricing. Morgan Stanley interpreted this move as a positive sign of improving pricing discipline within the industry. The bank believes the sector is shifting from price competition to commercialization driven by intelligence capabilities, with three major structural changes happening simultaneously: pricing becoming more rational, open-source licensing tightening, and model parameter sizes leaping forward.
TENCENT (00700) saw a net buy of HK$1.114 billion. BOCOM International noted that the market will continue to focus on whether Tencent's AI revenue growth can offset the increase in R&D expenses and capital expenditure, which could create short-term pressure on profitability and cash flow. Overall, the firm still agrees with Tencent's strategic logic of accelerating investment in the AI wave to explore broader commercial pathways. In the second half of the year, attention will be on key variables such as the release of the next-generation Hunyuan model, the commercialization conversion rate of AI applications, and user feedback, which will determine whether valuation can be supported.
SMIC (00981) recorded a net buy of HK$644 million. The company's second-quarter revenue reached $3.006 billion, a year-on-year increase of 36.1% and a sequential rise of 20%, marking the first time quarterly revenue exceeded the $3 billion threshold. Gross margin for the second quarter was 25.3%, up 4.9 percentage points year-on-year and 5.2 percentage points sequentially. Goldman Sachs stated that SMIC's second-quarter revenue and gross margin exceeded both the bank's and market expectations, as well as the company's previous guidance. Goldman maintained a buy rating on SMIC and holds a positive view on its long-term growth prospects.
YOFC (06869) attracted a net buy of HK$395 million. Daiwa published a research report indicating that YOFC is benefiting from the current strong upcycle in the optical fiber industry. The firm expects the company to be supported by its technological leadership and upside potential in the optical interconnect business, which is forecast to have a compound annual growth rate (CAGR) of 137% in gross profit. This is expected to drive a 135% CAGR in net profit from 2025 to 2028.
HUA HONG GRACE (01347) saw a net sell of HK$166 million. Jefferies reported that HUA HONG GRACE's second-quarter revenue met expectations, while gross margin and earnings before interest and tax (EBIT) outperformed forecasts, thanks to higher average selling prices and cost control measures. Net profit lagged due to lower-than-expected other income. The third-quarter revenue guidance was below expectations, though gross margin guidance was in line with forecasts. The firm pointed out that intense competition in mature process nodes and overcapacity issues could continue to pressure the company's overall profitability.
Additionally, KB LAMINATES (01888) garnered a net buy of HK$254 million. In contrast, BABA-W (09988) faced a net sell of HK$1.062 billion.
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