Northbound funds | North Water's net buying of 4.538 billion yuan, AI hardware stocks showed differentiation, PCB received additional positions while chip stocks were sold off.

On July 3, in the Hong Kong Stock Market, the net purchase of Northbound funds was 4.538 billion Hong Kong dollars. Among them, the net purchase of the Shanghai-Hong Kong Stock Connect was 4.468 billion Hong Kong dollars, and the net purchase of the Shenzhen-Hong Kong Stock Connect was 0.7 billion Hong Kong dollars. The stocks with the highest net purchases by Northbound funds were KB LAMINATES (01888), XIAOMI-W (01810), and Tencent (00700). The stocks with the highest net sales by Northbound funds were Hua Hong Grace Semiconductor (01347), Semiconductor Manufacturing International Corporation (00981), and BABA-W (09988). Active trading stocks in the Shanghai-Hong Kong Stock Connect Active trading stocks in the Shenzhen-Hong Kong Stock Connect KB LAMINATES (01888) and KINGBOARD HLDG (00148) received net purchases of 9.03 billion and 946 million Hong Kong dollars respectively. In the first half of this year, the price of electronic fabrics has undergone multiple rounds of increases, with "monthly adjustments" becoming the norm in the industry. As we enter July, leading companies in the electronic fabric industry have announced price hikes. It is widely expected by institutions after research that this pace of price increases may continue until the end of the year. Recently, KINGBOARD HLDG's Shaoguan Shixing Industrial Park, with an annual production capacity of 70,000 tons of electronic-grade fiberglass yarn, has officially started production and ignition three months ahead of the original plan. XIAOMI-W (01810) received a net purchase of 8.63 billion Hong Kong dollars. Xiaomi's electric vehicle shipments in June exceeded 30,000 units. Citigroup's research report stated that with expectations for 2026 and the upcoming launch of YU9, the stock price is expected to rebound in August. At the same time, if global Chinese memory manufacturers announce more capital expenditures leading to signs of a peak in memory prices, it is expected to have a positive impact on Xiaomi's stock price in the next 12 months. Tencent (00700) received a net purchase of 2.98 billion Hong Kong dollars. Guosheng pointed out that for Agent, ecological building is one of the core competitive barriers. The integration of WeChat into Agent is expected to fully unleash the value of its users and application resources, establish an efficient and diverse Agent ecosystem, make WeChat a new "super entrance" in the AI era, and drive Tencent's "overtaking on a curve" in the AI competition. In addition, WeChat is actively promoting cooperation on various platforms such as smartphones, which may help WeChat become a new operating system in the AI era. YOFC (06869) suffered a net sell-out of 2.9 billion Hong Kong dollars. Public information shows that this year, Hengtong Optic-Electric, Far East Smarter Energy, Tongding Interconnection Information, Hoshine Silicon Industry, Han's Laser Technology Industry Group, and other companies have initiated plans to expand optical fiber production. Nomura stated that if new entrants can successfully develop high-end products and smoothly execute their capacity expansion plans, market competition will intensify, and existing participants like Yangtze Optical Fibre And Cable Joint Stock may face pressure to expand profit margins. BABA-W (09988) suffered a net sell-out of 2.91 billion Hong Kong dollars. According to First Financial, it was reported by internal sources in Alibaba that, due to recent security risks in Claude Code, Alibaba has classified it as high-risk software after a comprehensive evaluation. Starting from July 10, Alibaba will completely prohibit internal employees from using Claude Code in the office environment, and recommend Qoder as an alternative. This prohibition is not limited to Claude Code but covers all products under Anthropic. Semiconductor Manufacturing International Corporation (00981) and Hua Hong Grace Semiconductor (01347) suffered net sell-outs of 8.03 billion and 9.96 billion Hong Kong dollars respectively. Meta plans to rent out idle AI computing power, which has led the market to believe that there is now an excess of computing power and that capital expenditure by major companies may decrease. In addition, Anthropic is discussing cooperation with Samsung Electronics to develop self-developed AI chips and is considering using Samsung's 2-nanometer process for outsourcing, indicating that AI companies are entering a phase of cost optimization.