On July 8th in the Hong Kong stock market, northbound capital recorded a net purchase of HK$14.194 billion.
Specifically, the Shanghai-Hong Kong Stock Connect saw a net purchase of HK$7.03 billion, while the Shenzhen-Hong Kong Stock Connect recorded a net purchase of HK$7.164 billion.
The top recipients of northbound capital inflows were Knowledge Atlas (02513), Alibaba-W (09988), and Tencent (00700).
The stocks with the largest net outflows were Changfei Optical Fiber Cable (06869) and KB Laminates (01888).
Knowledge Atlas (02513) received a net purchase of HK$4.329 billion.
According to media reports cited by Sina Finance, against the backdrop of surging demand for its GLM series of AI models, Knowledge Atlas is evaluating the possibility of developing its own custom chips.
Furthermore, the website of the China Securities Regulatory Commission shows that the status of Knowledge Atlas's A-share IPO tutoring has been updated to "tutoring work completed."
It is reported that on June 1st this year, Knowledge Atlas announced on the Hong Kong Stock Exchange that the company intends to apply for an initial public offering of A-shares and list on the STAR Market.
Alibaba-W (09988), Tencent (00700), and Meituan-W (03690) received net purchases of HK$3.982 billion, HK$2.508 billion, and HK$216 million, respectively.
Since July, trading congestion risks in the AI hardware sector have increased, leading institutions to reallocate towards the Hang Seng Tech Index, which is at a valuation bottom and supported by strong cash flows and substantial share buybacks.
CMB International noted that looking ahead to July, they believe the Hang Seng Tech Index valuation is already in an attractive range, suggesting moderate buying on dips, but valuation repair may need to rely on sequential fundamental improvement for support.
Huahong Grace (01347) and SMIC (00981) received net purchases of HK$318 million and HK$68.06 million, respectively.
Global AI leaders are increasingly considering developing their own chips.
DeepSeek's in-house AI inference chip project was reportedly exposed, having started about a year ago; Knowledge Atlas is evaluating the possibility of custom AI chips; OpenAI previously unveiled its first custom inference chip co-designed with Broadcom; Anthropic was also reported earlier to be considering developing its own chips.
The Kingboard group saw a divergence in performance.
Kingboard Hldg (00148) received a net purchase of HK$226 million, while KB Laminates (01888) suffered a net outflow of HK$223 million.
Kingboard Hldg saw its major shareholder, Hallgain, reduce its stake again, with the latest holding dropping to 31.98%.
Citigroup stated that given the average selling price of electronic-grade glass fiber cloth may be higher than expected, Kingboard Hldg's first-half performance could exceed the bank's forecasts.
Compared to Kingboard Hldg, the bank is more optimistic about its subsidiary, KB Laminates.
In the short term, it is unlikely that Kingboard Hldg will conduct another placement of KB Laminates shares.
Changfei Optical Fiber Cable (06869) suffered a net outflow of HK$499 million.
Public information shows that since the beginning of this year, companies including Hengtong Optic-Electric, Far East Holdings, Tongding Interconnection, Hoshine Silicon Industry, and Han's Laser have initiated plans to expand optical fiber preform production capacity.
Nomura noted that if new entrants can successfully develop high-end products and smoothly execute their capacity expansion plans, market competition will intensify, potentially putting pressure on the margin expansion of existing players like Changfei Optical Fiber.
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