Northbound funds | Northbound trading net sold 1.175 billion Semiconductor Manufacturing International Corporation (00981) notified downstream customers of a price increase. Beishui added nearly 500 million Hong Kong dollars throughout the day.

On December 24th, in the Hong Kong stock market, Beishui net sold for 1.175 billion Hong Kong dollars, with a net sale of 552 million Hong Kong dollars in the Hong Kong Stock Connect (Shanghai) and a net sale of 624 million Hong Kong dollars in the Hong Kong Stock Connect (Shenzhen). The stocks that Beishui net bought the most were Semiconductor Manufacturing International Corporation (00981), Agricultural Bank Of China (01288), and HUA HONG SEMI (01347). The stocks that Beishui net sold the most were China Mobile Limited (00941), Tencent (00700), and BABA-W (09988). Active trading stocks in the Hong Kong Stock Connect (Shanghai) Active trading stocks in the Hong Kong Stock Connect (Shenzhen) Beishui increased its holdings in semiconductor stocks, with Semiconductor Manufacturing International Corporation (00981) and HUA HONG SEMI (01347) receiving net purchases of 490 million and 105 million Hong Kong dollars, respectively. According to reports from the science and technology innovation board, Semiconductor Manufacturing International Corporation has issued a price increase notice to downstream customers, mainly focusing on the 8-inch BCD process platform with a price increase of around 10%. Another chip company also notified a 10% price increase for the BCD platform. Analysts believe that the high demand for power chips for AI servers is the main industry factor driving this price increase. Internal bank stocks showed differentiation today, with Agricultural Bank Of China (01288) receiving a net purchase of 174 million Hong Kong dollars, while Industrial and Commercial Bank of China (01398) saw a net sale of 23.43 million Hong Kong dollars. CITIC SEC predicts that in 2026, the decline in bank net interest margin will narrow to around 4 bps, marking the first year since 2022 with an annual decline in interest margin at a low single digit level. This is expected to improve the overall operational income and net profit for listed banks by around 3.3% and 2.8%, respectively. CSPC PHARMA (01093) received a net purchase of 100 million Hong Kong dollars. CSPC PHARMA announced a series of key management personnel changes, involving executive directors, vice-chairmen, CEOs, and COOs. The new structure officially took effect on the day of the announcement. The founder and chairman of CSPC PHARMA, Cai Dongchen, appointed his son Cai Lei as CEO. YOFC (06869) received a net purchase of 26.92 million Hong Kong dollars. Open source securities pointed out that with the vigorous development of global AI, the demand for fiber optic cables in data centers and DCIs will continue to grow. In the short term, global manufacturers' limited production capacity may lead to a supply-demand imbalance. The bank believes that the demand and price for fiber optic cables are expected to steadily increase. Ganfeng Lithium Group (01772) received a net purchase of 26.29 million Hong Kong dollars. According to China Securities Co.,Ltd., a large lithium mica mine in Jiangxi province conducted the first environmental impact assessment on December 18th. The resumption of production is expected to be delayed again, as there is little hope for resuming production in December, and resuming production within January is also difficult. The oversupply expectation during the off-peak season further weakens, and the low inventory level provides support for the continued rise in prices for the coming year. If the resumption of mining continues to be delayed and the accumulated inventory during the off-season is lower than expected, it will be difficult to support the strong demand in the second quarter, thereby amplifying the upward elasticity of lithium prices. BABA-W (09988) and Tencent (00700) saw net sales of 288 million and 611 million Hong Kong dollars, respectively. GF Fund stated that short-term disturbances in liquidity are likely to continue to impact the Hong Kong stock market, but the market is still worth watching after the adjustment. With weak economic data and the upcoming change in the Chairmanship of the Federal Reserve, the rate cut cycle by the Fed next year is highly probable. In the short term, factors such as the signal of a rate hike by the Bank of Japan and the pressure of unlocking funds in the Hong Kong stock market may put pressure on risk appetite in the Hong Kong stock market. However, the upward trend in the AI industry cycle remains unchanged, and if the short-term factors suppressing the Hong Kong stock market are further resolved and incremental funds are clearly added to drive assets scarcity, the market situation in the Hong Kong stock market will not change. Additionally, XIAOMI-W (01810) received a net purchase of 4.4 million Hong Kong dollars, while China Mobile Limited (00941) saw a net sale of 710 million Hong Kong dollars.