Northbound funds | Northbound trading recorded a net selling of 1.457 billion RMB, Hong Kong stock ETFs received increased positions, and AI hardware and software were both sold off.

On July 17, the net sales of BeiShui in the Hong Kong stock market amounted to 1.457 billion Hong Kong dollars. Among them, the net purchases of Hong Kong Stock Connect (Shanghai) were 1.91 billion Hong Kong dollars, while the net sales of Hong Kong Stock Connect (Shenzhen) were 3.367 billion Hong Kong dollars. The top stocks with the most net buys by BeiShui were TRACKER FUND OF HONG KONG (02800), CSOP Hang Seng TECH Index ETF (03033), and XIAOMI-W (01810). The top stocks with the most net sales by BeiShui were BABA-W (09988), Hua Hong Grace Semiconductor (01347), and KB LAMINATES (01888). Active trading stocks in Hong Kong Stock Connect (Shanghai) were TRACKER FUND OF HONG KONG (02800) and CSOP Hang Seng TECH Index ETF (03033) with net buys of 2.975 billion and 0.971 billion Hong Kong dollars, respectively. Shenwan Hongyuan Group pointed out that after a significant increase last year, the performance of the Hong Kong stock market indices has been lackluster this year. The market is currently in a "triple bottom" area. Moreover, a large amount of accumulated short positions in the market structure may become a driving force for upward movements when the market reverses. In terms of potential catalysts, changes in both top-down macro factors and bottom-up industry narratives are expected to provide momentum for the market to recover. XIAOMI-W (01810) received a net buy of 0.322 billion Hong Kong dollars. Xiaomi launched the SkyNomad Xiaopeng for the automotive industry, which is different from the SU7 and YU7 series in its positioning as an "intelligent and variable spacious SUV" that meets diverse interior scene requirements. In addition, the Redmi Note17 series, which was released on July 14, is focused on safeguarding core experiences for mid-range consumers amidst rising storage costs. This helps maintain a high-performance-to-price ratio positioning, which is beneficial for gaining a larger market share in the mid-range segment and strengthening bargaining power upstream. GigaDevice Semiconductor Inc.(03986) received a net buy of 1.88 billion Hong Kong dollars. BOCOM INTL pointed out that overseas giants such as Samsung, SK Hynix, Micron, and Kioxia continue to withdraw from niche-type DRAM and SLC NAND Flash capacity, with the supply gap expected to significantly open up starting in 2025. This presents GigaDevice Semiconductor Inc. with an opportunity to capitalize on capacity replacements. Leveraging its experience in expanding its share in the NOR Flash field, the company is expected to achieve faster growth in market share and profits in this round of redistribution. The deep collaboration between the company and Changxin is the core support for the company's DRAM business. YOFC (06869), Semiconductor Manufacturing International Corporation (00981), KB LAMINATES (01888), and Hua Hong Grace Semiconductor (01347) suffered net sales of 2.64 billion, 14.01 billion, 16.38 billion, and 19.38 billion Hong Kong dollars, respectively. Guolian An Fund previously stated that the current overseas market sell-off is due to the loosening of the trading congestion in the AI hardware track, with concerns that the previous speculation in AI was overly exuberant, prompting funds to collectively reduce exposure for risk aversion. According to major Wall Street players like Bank of America, Nomura, and top market research firms such as SemiAnalysis, this round of global storage chip and even AI computing infrastructure investment theme stocks experienced a general sharp decline closer to the extreme expectations, with a concentration of liquidation of extremely leveraged and overcrowded long positions, rather than a sudden collapse in industrial demand. Tencent (00700) and BABA-W (09988) suffered net sales of 2.65 billion and 24.51 billion Hong Kong dollars, respectively. GF SEC believes that the opportunities in the second half of the year for Hong Kong stocks may mainly come from the rebound of oversold stocks, considering that there are many losing positions above the current Hengke. Once a volume-rebound reaches the resistance area, there is a high likelihood of a sharp decline, making it a market where gains may come and go quickly, with a rebound window and magnitude similar to the first half of the year, making it difficult to grasp.