On August 5, the Hong Kong stock market recorded a net southbound capital outflow of HK$1.398 billion. The Shanghai-Hong Kong Stock Connect showed a net sell of HK$1.577 billion, while the Shenzhen-Hong Kong Stock Connect reported a net buy of HK$179 million.
The stocks that attracted the most net buying from southbound funds were SMIC (00981), HUA HONG GRACE (01347), and KB LAMINATES (01888). On the other hand, the stocks with the largest net selling were Tracker Fund (02800), Tencent (00700), and CNOOC (00883).
SMIC (00981) and HUA HONG GRACE (01347) received net purchases of HK$1.152 billion and HK$990 million, respectively. Vanguard International Semiconductor indicated that capacity utilization is expected to climb to 90% by 2026, with foundry prices continuing to rise in 2027. A 12-inch wafer fab will begin mass production ahead of schedule, and AI-related revenue is projected to double, contributing more significantly next year. Samsung Electronics’ foundry business is also expected to reach full capacity utilization by the end of this year.
KB LAMINATES (01888) saw a net purchase of HK$881 million. Citing data from SCI99, Citigroup reported that the average prices of the three major electronic yarn series (1080, 2116, and 7628) rose 17%-18% month-on-month in August, reaching 13.1 yuan, 12.7 yuan, and 10.1 yuan per meter, respectively. This represents a cumulative increase of 118%-165% year-to-date. The absolute monthly price increase of 1.5-2.0 yuan per meter is the highest so far this year, reflecting a more severe supply-demand imbalance in August. Citigroup noted that costs are accelerating toward the copper-clad laminate (CCL) segment, signaling a new wave of price increases.
Z.AI (02513) attracted a net purchase of HK$641 million. Goldman Sachs significantly raised its forecast for China's AI large model annual recurring revenue (ARR) in 2026 from US$10 billion to US$13 billion. The bank also raised its revenue expectation for Z.AI this year by 35%. Guosen Securities International previously stated that it is optimistic about the GLM model's ability to enhance competitiveness and market share in the global large model competition, with potential for exponential commercialization growth.
YOFC (06869) recorded a net purchase of HK$478 million. According to estimates from GL-Fibercable and Rebio Group, global optical fiber demand is projected to reach 760 million and 889 million core kilometers in 2026 and 2027, respectively, representing year-on-year growth of 27.6% and 17.0%. Analysts pointed out that the overall localization rate of China's optical fiber preforms has risen from 65% in 2023 to over 80% in 2026, but there remains a structural gap in high-end G.657.A2 and hollow-core fiber specialty preforms.
BABA-W (09988) saw a net purchase of HK$275 million. According to Alibaba Cloud's official WeChat account, Alibaba's Qwen image generation model, Qwen-Image-3.0, has been officially launched on the Qwen AI platform and is fully open to all users. The flagship version, Qwen-Image-3.0-Pro, and the standard version, Qwen-Image-3.0-Standard, are both available via API, with text-to-image generation starting at 0.18 yuan per image. The API is now live on the Qwen AI platform, and international users can access it through Qwen Cloud.
CNOOC (00883) faced a net sell of HK$616 million. US Treasury Secretary Bessent stated that the US is in contact with Iran and may reach an agreement to reopen the Strait of Hormuz as early as this week, or even within the next two days. This would ensure freedom of navigation, with Iran not charging tolls. As expectations of a US-Iran détente strengthened, international oil prices fell significantly, with Brent crude briefly dropping below US$80.
Tracker Fund (02800) experienced a net sell of HK$2.031 billion. Soochow Securities noted that the Hang Seng Index has risen over 13% since July, leading global major indices and showing a relatively independent catch-up rally amid a significant correction in global tech stocks. The firm believes that Hong Kong stocks are still in a catch-up window with clear structural opportunities, but face short-term risks of stagnation or a pullback. Whether the rebound can continue in August largely depends on overseas dynamics.
Additionally, 兆易创新 (03986) received a net purchase of HK$92.8 million, while 胜宏科技 (02476) and Tencent (00700) saw net sells of HK$7.15 million and HK$844 million, respectively.
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