Mainland investors were net buyers of Hong Kong stocks to the tune of HK$5.895 billion on June 30.
Through the Shanghai-Hong Kong Stock Connect, net buying amounted to HK$5.574 billion, while the Shenzhen-Hong Kong link saw net purchases of HK$321 million.
The top three stocks by net buying volume were SMIC (00981), Tencent (00700), and KB Laminates (01888).
The stocks with the largest net outflows were the Tracker Fund (02800), the CSOP Hang Seng Tech ETF (03033), and YOFC (06869).
Key Purchases by Mainland Capital
SMIC (00981) and Hua Hong Grace (01347) attracted net inflows of HK$2.134 billion and HK$756 million, respectively.
This buying interest in chipmakers follows reports that Taiwan Semiconductor Manufacturing is raising its foundry prices.
The price hikes, reportedly ranging from 5% to 10%, are said to apply not only to the anticipated 3nm process but also to all advanced processes at 7nm and below, affecting roughly 75% of its wafer revenue.
Additionally, the chairman of Vanguard International Semiconductor projected that the 8-inch wafer foundry market will remain in a state of tight supply through 2026.
Tencent (00700) saw net buying of HK$1.231 billion.
Guosheng Securities noted that for AI agents, ecosystem development is a core competitive barrier.
Integrating agents into WeChat could unlock the full value of its user base and application resources, establishing an efficient and diverse agent ecosystem and potentially transforming WeChat into a new "super portal" in the AI era, helping Tencent gain a competitive edge.
Furthermore, Tencent is actively promoting collaborations on device sides like smartphones, which could position WeChat as a new operating system for the AI age.
KB Laminates (01888) and Kingboard Hldg (00148) received net inflows of HK$817 million and HK$175 million, respectively.
A recent Morgan Stanley report forecasts that the global market size for AI optical module PCBs could surge from $620 million in 2025 to $3.77 billion by 2028.
This represents a more than fivefold increase over three years, with a compound annual growth rate of 83%, far exceeding the 60% growth rate projected for optical modules during the same period.
PCBs, serving as the core substrate for AI servers, switches, and optical modules, are becoming one of the fastest-growing segments in computing infrastructure.
Gigadevice (03986) attracted net buying of HK$402 million.
On June 27, the Roundhill Memory ETF, a pure-play active management ETF for memory stocks that is scarce in the US market, updated its holdings, including Gigadevice for the first time with a weight of 2.91%, making it the fund's eighth-largest holding.
This marks the first A-share memory stock included in the ETF since its April listing and is the only A-share memory chip company in its portfolio, indicating that China's memory industry chain is gaining substantive recognition from global passive funds.
Knowledge Atlas (02513) also saw net buying of HK$85.15 million.
Significant Sell-offs by Mainland Capital
YOFC (06869) faced net selling of HK$430 million.
Nomura noted that fiber supply constraints are likely to persist in the short term, allowing YOFC to continue benefiting from higher spot fiber prices and margin expansion from greater involvement in the AI data center market.
However, the brokerage warned that if new entrants successfully develop high-end products and execute their capacity expansion plans smoothly, market competition could intensify, potentially putting pressure on the margin expansion of existing players like YOFC.
The Tracker Fund (02800) and the CSOP Hang Seng Tech ETF (03033) were hit with substantial net outflows of HK$2.971 billion and HK$1.202 billion, respectively.
CITIC Securities believes the Hong Kong market's significant underperformance relative to other Asian markets since 2026 stems from three pressures.
On the earnings front, profit expectations for heavyweight stocks have been collectively downgraded, with significant downward revisions for internet platforms and the automotive chain, not fully offset by upward revisions for hard-tech firms.
Regarding valuation, the US dollar and US Treasury yields present a dual constraint for offshore markets, leading to persistent foreign capital outflows.
At the micro trading level, the third quarter faces liquidity supply disruptions from IPOs and share lock-up expiries.
Additionally, BABA-W (09988) experienced net selling of HK$36.27 million.
Comments