On June 8th, the Hong Kong stock market witnessed a significant net purchase of HK$11.318 billion by southbound capital through the Stock Connect schemes. The Shanghai-Hong Kong Stock Connect channel contributed a net buy of HK$9.967 billion, while the Shenzhen-Hong Kong Stock Connect channel added a net purchase of HK$1.351 billion.
Tracker Fund of Hong Kong (02800), TENCENT (00700), and KNOWLEDGE ATLAS (02513) were the top recipients of net inflows from the northbound funds. Conversely, Semiconductor Manufacturing International Corporation (00981) and Hua Hong Grace Semiconductor Manufacturing Corporation (01347) faced the largest net outflows.
Southbound Capital Boosts Hong Kong ETF Holdings
Southbound capital increased its positions in Hong Kong-listed ETFs. Tracker Fund of Hong Kong (02800) and CSOP Hang Seng Tech Index ETF (03033) received net purchases of HK$5.594 billion and HK$639 million, respectively. Some analysts suggest that with headwinds subsiding, the market's perception of Hong Kong stocks' value for money is expected to return. Given that valuations across most sectors in Hong Kong are at relatively low percentiles, a return to fundamental value assessments is anticipated once international risks and liquidity concerns ease. Other market views posit that Hong Kong equities may continue to deliver relative outperformance.
TENCENT (00700) attracted a net inflow of HK$1.162 billion. Recent reports indicated that Tencent is accelerating the development of AI agents embedded within WeChat, which have now entered the prototype testing phase. After the market close, it was announced that the WeChat Open Platform has launched capabilities for ecosystem access to WeChat AI, allowing developers to actively authorize access via the "Mini Program Admin Backend - AI Capabilities" section. The platform reportedly offers both automatic and development mode options, which can be enabled simultaneously.
KNOWLEDGE ATLAS (02513) saw a substantial net purchase of HK$920 million. This follows the Hang Seng Indexes Company's earlier announcement to include the stock in the Hang Seng Tech Index, a change that took effect on June 8th. Furthermore, according to the Shanghai and Shenzhen stock exchanges, Knowledge Atlas officially became eligible for trading through the southbound Stock Connect channels on the same day. Analysts express optimism regarding the company's leading capabilities in large language models, suggesting that accelerated product iteration and talent development could maintain a competitive edge, allowing it to benefit from a simultaneous increase in both volume and price for high-end AI tokens.
Kingboard Laminates Holdings Ltd (01888) received a net inflow of HK$324 million. In early June, several copper-clad laminate manufacturers, including Kingboard, Shengyi Technology, and Jinan Guoji, issued notices for price increases in the third quarter, typically ranging between 10% to 15%. This marks the second round of comprehensive price hikes since 2026. It is noteworthy that Kingboard Laminates has implemented seven price increases since 2025, primarily driven by tight supply and rising costs of upstream raw materials.
Yangtze Optical Fibre and Cable Joint Stock Limited Company (06869) garnered a net purchase of HK$311 million. Data indicates that the quoted price for A2-grade preform has surged from RMB 22-30 per equivalent core kilometer in early 2025 to RMB 160 per equivalent core kilometer in 2026, representing an increase of approximately 550%. Public information shows that Yangtze Optical Fibre and Cable is the only company globally that masters the three major preform manufacturing processes: PCVD, OVD, and VAD. This has established a full industrial chain competitive barrier encompassing "preform-fibre-cable," with a 100% self-sufficiency rate in preform and the largest production scale worldwide.
UBTECH Robotics Corp Ltd (09880) attracted a net inflow of HK$144 million. On June 2nd, the company's consumer humanoid robot brand, You World, officially announced the launch of pre-sales on JD.com for what it claims is the world's first full-size ultra-bionic humanoid robot. Positioned for emotional companionship scenarios, the product is scheduled for an official release on June 30th. On June 7th, UBTECH announced that pre-orders for the You World ultra-bionic humanoid robot had accumulated over 2,110 units within six days of the pre-sale launch.
Southbound Funds Continue Selling Chip Stocks
Southbound capital continued its divestment from semiconductor stocks. Semiconductor Manufacturing International Corporation (00981) and Hua Hong Grace Semiconductor Manufacturing Corporation (01347) experienced net outflows of HK$925 million and HK$493 million, respectively. Market discussions regarding whether the U.S. stock market's AI rally is overheated persist. Bridgewater Associates founder Ray Dalio has expressed the view that the AI sector is showing characteristics of a bubble, which he believes will eventually burst. He analyzes that major technological transformation phases historically tend to foster market bubbles, presenting industry participants with challenging investment decisions where both aggressive positioning and conservative观望 carry respective risks.
Additionally, Alibaba Group Holding Limited (09988) and Shandong Molong Petroleum Machinery Company Limited (00568) received net purchases of HK$102 million and HK$68.39 million, respectively.
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