Northbound funds | Northbound trading net bought 10.371 billion, northbound trading increased positions in hardware while selling technology and internet stocks, accumulating more than 4.1 billion Hong Kong dollars for Tracker Fund of Hong Kong (06869).

On June 23, the Hong Kong stock market saw a net purchase of 10.371 billion Hong Kong dollars by Northbound investors. Among them, the Shanghai-Hong Kong Stock Connect saw a net purchase of 7.085 billion Hong Kong dollars, while the Shenzhen-Hong Kong Stock Connect saw a net purchase of 3.286 billion Hong Kong dollars. The top three stocks with the most net purchases by Northbound investors were TRACKER FUND OF HONG KONG (02800), Semiconductor Manufacturing International Corporation (00981), and KINGBOARD HLDG (00148). The top two stocks with the most net sales by Northbound investors were BABA-W (09988) and Tencent (00700). The most active stocks in the Shanghai-Hong Kong Stock Connect were TRACKER FUND OF HONG KONG (02800) with a net purchase of 4.172 billion Hong Kong dollars. China Galaxy Securities released a research report stating that the performance of the Hong Kong stock market in 2026 is expected to continue the trend of structural repair, with overall profit growth improving compared to 2025, but differentiation will remain the main theme. Looking ahead to the second half of 2026, the Hong Kong stock market is currently in a "low point", facing a "puzzle", with a "long slope" as the direction, and "building up strength" as the process. While the fundamentals have confirmed a turning point, market confidence and fund flows have not yet formed a unified force. Semiconductor Manufacturing International Corporation (00981) and Hua Hong Grace Semiconductor (01347) saw net purchases of 2.471 billion and 520 million Hong Kong dollars, respectively. TrendForce predicts a 24.8% year-on-year growth in global wafer foundry revenue to 218.8 billion US dollars in 2026, with AI processors and related IC demand remaining key drivers. Caitong believes that amid the upturn in the global semiconductor industry, overseas AI production capacity pressures, mature process orders returning, and domestic wafer fab capacity expansion, the wafer foundry segment is expected to continue benefiting. KINGBOARD HLDG (00148) and KB LAMINATES (01888) saw net purchases of 1.052 billion and 277 million Hong Kong dollars, respectively. The PCB industry is entering a pricing cycle, with a high prosperity pattern of rising prices and volumes, full order books, and extended delivery times. Citigroup stated that frequent upward revisions to KINGBOARD HLDG's holding company KB LAMINATES' profit forecasts by 62% are mainly due to the assumption that the average selling prices of copper clad laminates (CCL) and electronic glass fibers are higher than expected, fully offsetting the recent impact on KINGBOARD HLDG's shareholding ratio dropping from 67% to 62% due to a rights issue by KB LAMINATES. YOFC (06869) saw a net purchase of 515 million Hong Kong dollars. The optical fiber preform rod continues to be in short supply, with global capacity utilization nearing full capacity. Huaxin Securities pointed out that Yangtze Optical Fibre And Cable Joint Stock has maintained the world's top market share in the three core products of optical fiber preform rods, optical fibers, and optical cables since 2016, with deep technological accumulation and a comprehensive capacity layout. The company is expected to fully benefit from the improved industry sentiment. KNOWLEDGE ATLAS (02513) saw a net purchase of 437 million Hong Kong dollars. On June 17, KNOWLEDGE ATLAS officially released and open-sourced its flagship model GLM-5.2. With a total of 744 billion parameters, 40 billion activation parameters, and stable support for a million context windows, the model performs well in handling long-range software engineering tasks. Guolian Minsheng believes that the recent restrictions on Anthropic services will create a window for trust transfer for domestic AI, highlighting the strategic value of domestic leading large model manufacturers and sovereign AI. Tencent (00700) saw a net sale of 99.73 million Hong Kong dollars. WeChat's native AI assistant "Xiaowei" has started small-scale testing. Goldman Sachs pointed out that after the pilot test, the market's initial reaction was relatively subdued, reflecting investors' concerns about WeChat's use of its own WeLM language model and worries about the cost burden of large-scale computation reasoning when fully launched in the future. The bank estimated that the additional reasoning costs would be equivalent to about 5% to 17% of Tencent's adjusted operating profit for the fourth quarter of 2026. As for substantive revenue, the bank still believes that long-term revenue growth potential will mainly be related to the size of the existing online advertising market. BABA-W (09988) saw a net sale of 1.252 billion Hong Kong dollars. Citigroup's report stated that this year's 618 shopping festival is likely to be the most low-key and uneventful in the past 16 years. Fudan University's Big Data Laboratory estimates that online GMV during the 618 period is expected to grow by only 3.2% year-on-year. The bank pointed out that due to Alibaba's significant reduction in immediate spending on retail, the entire industry lacks aggressive subsidy competition, which has further led to a lackluster 618 activities this year.