Mainland capital recorded a substantial net purchase of HK$24.96 billion in the Hong Kong stock market on May 15. Within this, the Shanghai-Hong Kong Stock Connect channel saw net buying of HK$17.15 billion, while the Shenzhen-Hong Kong Stock Connect channel contributed a net purchase of HK$7.80 billion.
The top targets for mainland capital inflows were Tracker Fund (02800), Hang Seng China Enterprises Index ETF (02828), and CSOP Hang Seng Tech Index ETF (03033). The largest net outflows were seen for Alibaba-W (09988), Yangtze Optical Fibre And Cable Joint Stock Limited Company (YOFC) (06869), and XXF (02473).
Investors actively bought Hong Kong-listed ETFs on market dips. The Tracker Fund (02800), Hang Seng China Enterprises Index ETF (02828), and CSOP Hang Seng Tech Index ETF (03033) attracted net purchases of approximately HK$12.91 billion, HK$4.74 billion, and HK$2.90 billion, respectively. Analysis from Everbright Securities' overseas team suggests that while Hong Kong stocks are in a bottoming zone, a full reversal is not yet imminent, with structural opportunities taking precedence. The market has largely priced in negative factors, with support from passive foreign capital inflows and sustained southbound flows providing a solid valuation floor. However, a large-scale return of active, long-term global capital—a key driver for a sustained uptrend—is still awaited.
Mainland capital resumed buying in semiconductor stocks. Hua Hong Semiconductor Limited (01347) and Semiconductor Manufacturing International Corporation (SMIC) (00981) received net inflows of HK$775 million and HK$670 million, respectively. SMIC reported Q1 revenue of RMB 17.62 billion, up 8.1% year-on-year, with net profit attributable to shareholders of RMB 1.36 billion, a slight 0.4% increase. The company's Q2 guidance projects a 14% to 16% sequential revenue growth with a gross margin forecast between 20% and 22%. Hua Hong Semiconductor reported Q1 sales revenue of $660.9 million, a 22.2% year-on-year increase, with a gross margin of 13.0%, up 3.8 percentage points. Net profit attributable to shareholders surged to $20.9 million.
Montage Technology Co.,Ltd. (06809) saw a net inflow of HK$459 million. The company's Chairman and CEO, Yang Chonghe, stated that the shift in AI from training to inference, along with the emergence of new applications like Agents, positively impacts the global interconnect chip market. He expressed confidence that the company, with its leading position in DDR5 generational iteration and its portfolio in technologies like MRCD/MDB and PCIe/CXL, will continue to benefit from these industry trends.
TENCENT (00700) attracted a net purchase of HK$215 million. CMB International Securities noted in a report that TENCENT's Q1 results were largely in line with expectations. AI continues to accelerate growth in its core businesses, and the anticipated launch of the WeChat Agent in Q3 this year is expected to become a core competitive advantage. The firm remains positive on TENCENT's unique market position and growth opportunities driven by agentic AI.
Yangtze Optical Fibre And Cable Joint Stock Limited Company (YOFC) (06869) faced a net sell-off of HK$187 million. UBS previously released a report noting that YOFC's Q1 net profit of RMB 495 million fell below market expectations of RMB 800 million to RMB 1 billion, anticipating a negative short-term market reaction. However, the bank expressed confidence in the company's profit growth over the coming quarters, believing it will take time for rising fibre prices to be fully reflected and that sustained demand from data centers should help the company meet its full-year forecasts.
Alibaba-W (09988) experienced a net outflow of HK$339 million. Alibaba Group CEO Eddie Wu recently stated that to achieve the previously stated goal of "annual commercial revenue from cloud and AI exceeding $100 billion within five years," Alibaba Cloud's future computing center assets would need to be over ten times the level of 2022, pre-AI boom. He indicated that Alibaba's capital expenditure over the next three years could significantly exceed the previously committed RMB 380 billion.
In other notable moves, XIAOMI-W (01810) received a net inflow of HK$70.07 million, while XXF (02473) saw a net outflow of HK$52.27 million.
Comments