Northbound funds | Northbound trading saw a net purchase of 4.171 billion yuan, with domestic funding continuing to aggressively buy into Semiconductor Manufacturing International Corporation (00981) and increasing their position in ZTE Corporation (00763) by over 300 million Hong Kong dollars.

On January 22, in the Hong Kong stock market, Beishui had a net purchase of 4.171 billion Hong Kong dollars. Among them, the net purchase of Hong Kong Stock Connect (Shanghai) was 3.211 billion Hong Kong dollars, and the net purchase of Hong Kong Stock Connect (Shenzhen) was 0.96 billion Hong Kong dollars. The stocks with the most net purchases by Beishui were Semiconductor Manufacturing International Corporation (00981), XIAOMI-W (01810), and Tencent (00700). The stocks with the most net sales by Beishui were BABA-W (09988), CNOOC (00883), and XPENG-W (09868). Active stocks on the Hong Kong Stock Connect (Shanghai) include Semiconductor Manufacturing International Corporation (00981), with a net purchase of 0.87 billion Hong Kong dollars. Recent news indicates the establishment of a national artificial intelligence industry investment fund with a total investment of 60.06 billion yuan. Goldman Sachs predicts long-term growth in demand in the Chinese semiconductor industry due to increasing local demand driven by geopolitical risks and expects a gradual upward trend for China's Semiconductor. Tencent (00700) had a net purchase of 3.14 billion Hong Kong dollars. Tencent is expected to continue delivering robust profits in the fourth quarter of last year, driven by strong growth in game revenue and the resilience of its marketing business. Tencent's management has expressed optimism regarding the e-commerce business, led by the WeChat team with strong product development capabilities, such as the recent introduction of the gifting feature. Tencent is expected to maintain a leading position in the AI competition due to its rich application scenarios and large user base. Others with notable net purchases were ZTE Corporation (00763) with 3.12 billion Hong Kong dollars, SUNAC (01918) with 1.26 billion Hong Kong dollars, Xiaomi-W (01810) with 3.27 billion Hong Kong dollars, and China Mobile Limited (00941) with 2.28 billion Hong Kong dollars. BABA-W (09988) suffered a net sale of 1.13 billion Hong Kong dollars, while XPENG-W (09868) faced a net sale of 28.62 million Hong Kong dollars. BABA-W suffered net sales due to concerns about the increase in US production following President Trump's announcement of a national energy emergency on his first day in office, leading to market worries about supply excess.