On July 9th, the Hong Kong stock market saw net purchases by northbound capital amounting to HK$9.83 billion. Specifically, the Shanghai-Hong Kong Stock Connect recorded net purchases of HK$3.248 billion, while the Shenzhen-Hong Kong Stock Connect recorded net purchases of HK$6.583 billion.
The stocks receiving the highest net purchases from northbound capital were Knowledge Atlas (HKEX: 02513), Alibaba Group Holding Ltd - W (HKEX: 09988), and Hua Hong Grace (HKEX: 01347). The stocks with the highest net sales were the Tracker Fund of Hong Kong (HKEX: 02800) and Tencent Holdings Ltd (HKEX: 00700).
Knowledge Atlas (HKEX: 02513) secured an additional net purchase of HK$5.574 billion, bringing its two-day total net purchases close to HK$100 billion. On July 9th, the company announced the completion of a placement raising approximately HK$31.41 billion. The proceeds are earmarked for foundational model R&D, computing infrastructure development, commercial expansion, and global ecosystem deployment. Amidst intensifying global competition in large language models, this capital injection is set to provide more resources for the company's next phase of model development and technological investment.
Alibaba Group Holding Ltd - W (HKEX: 09988) received net purchases of HK$2.205 billion. The company communicated with institutional investors regarding its financial results for the first quarter of fiscal year 2027. Alibaba Cloud revenue is projected to grow approximately 45% year-over-year, significantly surpassing market expectations of 40%. Its EBITA margin has improved to the low double digits, meeting prior guidance. This anticipated 45% revenue growth rate would mark Alibaba Cloud's highest quarterly growth in nearly five years, further indicating that its AI business is driving a new phase of expansion.
Hua Hong Grace (HKEX: 01347) and Semiconductor Manufacturing International Corporation (HKEX: 00981) received net purchases of HK$1.211 billion and HK$1.055 billion, respectively. Research firm Omdia recently issued a report forecasting that China's semiconductor market size will reach $812.08 billion (approximately RMB 5.52 trillion) by 2026, representing a projected year-on-year growth of 92.9%, a significant upward revision from previous estimates. Additionally, Taiwan Semiconductor Manufacturing Company (TSMC) plans to increase prices for its 3nm process technology again in the second half of the year, with hikes of up to 15%, and potentially a further 5% to 10% increase next year.
Xiaomi Corporation - W (HKEX: 01810) received net purchases of HK$508 million. On July 9th, Xiaomi's Chairman Lei Jun officially unveiled the "SkyNomad Xiaomi Pengcheng," positioning it as an "intelligent variable large-space SUV." Market expectations place its pricing between RMB 200,000 and RMB 450,000. Market sources suggest that Xiaomi's automotive unit plans to hold a technology launch event in July 2026, with the official market launch scheduled for mid-August.
Kingboard Holdings Ltd (HKEX: 00148) and its subsidiary Kingboard Laminates Holdings Ltd (HKEX: 01888) received net purchases of HK$306 million and HK$116 million, respectively. Citigroup noted that Kingboard Holdings' first-half performance might exceed its forecasts, given that the average selling price for electronic-grade fiberglass cloth could be higher than expected. It is anticipated that major shareholder Hallgain's stake in Kingboard Holdings will not fall below 30%, as this is the threshold that would trigger a mandatory general offer scenario. The next potential catalyst is expected to be a positive profit alert for the forecasted 2026 first-half results, which would demonstrate the leverage effect of a potential doubling in electronic-grade fiberglass cloth prices on net profit. The bank expressed a preference for the subsidiary, Kingboard Laminates Holdings, over the parent company.
GigaDevice Semiconductor Inc. (HKEX: 03986) received net purchases of HK$204 million. ChangXin Memory Technologies (CXMT) has set its new share subscription for July 16th, aiming to raise RMB 29.5 billion for capacity expansion and upgrades. Furthermore, GigaDevice released an announcement after market close, projecting a first-half 2026 net profit of approximately RMB 6.9 billion, a year-on-year increase of 1,099%. It expects revenue of around RMB 11.5 billion, up 177% year-over-year. During the reporting period, tight supply in the memory chip industry led to both volume and price increases for the company's memory chip products, enhancing the profitability of its memory business.
The Tracker Fund of Hong Kong (HKEX: 02800) saw net sales of HK$2.313 billion. Analysts from Guotai Junan Securities and Haitong Securities indicated that the Hong Kong market is entering a period of concentrated release for micro-liquidity shocks this week. As these short-term shocks are gradually digested, coupled with the increasing possibility that interim results will mark a bottom for corporate earnings, the market is expected to refocus on rational assessments of fundamental value. Overall, as the shocks subside, the long-term investment value and attractive valuations of Hong Kong stocks are becoming prominent once again.
Additionally, Yangtze Optical Fibre and Cable Joint Stock Ltd (HKEX: 06869) received net purchases of HK$306 million, while Tencent Holdings Ltd (HKEX: 00700) experienced net sales of HK$1.434 billion.
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