Northbound funds | Northbound capital recorded a net sell of 1.398 billion. Northbound capital continues to increase positions in SMIC and Hua Hong. Throughout the day, over 2 billion HKD was sold off from the TRACKER FUND OF HONG KONG (02800).

On August 5, the Hong Kong stock market saw a net sell-off of HKD 1.398 billion by northern investors. Among them, the Shanghai-Hong Kong Stock Connect recorded a net sell-off of HKD 1.577 billion, while the Shenzhen-Hong Kong Stock Connect had a net buy of HKD 179 million. The stocks with the highest net buys from northern investors were Semiconductor Manufacturing International Corporation (00981), Hua Hong Grace Semiconductor (01347), and KB LAMINATES (01888). The stocks with the highest net sell-offs included TRACKER FUND OF HONG KONG (02800), Tencent (00700), and China National Offshore Oil Corporation (00883). Active stocks on the Shanghai-Hong Kong Stock Connect Active stocks on the Shenzhen-Hong Kong Stock Connect Semiconductor Manufacturing International Corporation (00981) and Hua Hong Grace Semiconductor (01347) recorded net buys of HKD 1.152 billion and HKD 990 million, respectively. World Advanced stated that by 2026, capacity utilization is expected to continue rising to 90%, with no decrease in foundry price increases in 2027, and the 12-inch wafer plant will begin volume production ahead of schedule, with AI business revenue doubling and contributing even more next year. Samsung Electronics' foundry business is expected to achieve 100% utilization by the end of this year. KB LAMINATES (01888) saw a net buy of HKD 881 million. Citigroup cited SCI99 data indicating that the average prices of the three major electronic fabric series1080, 2116, and 7628rose by 17%-18% month-on-month in August, reaching HKD 13.1, HKD 12.7, and HKD 10.1 per meter, respectively, with cumulative increases for the year reaching as high as 118%-165%. The absolute monthly increase was about HKD 1.5-2.0 per meter, also the highest level since the beginning of the year, reflecting a more severe supply-demand tension in the industry in August compared to previous periods. Citigroup pointed out that costs are accelerating towards the copper-clad laminate (CCL) stage, and a new round of price increase windows has already opened. Z.AI (02513) received a net buy of HKD 641 million. Goldman Sachs significantly raised its expectations for China's AI large model annual recurring revenue (ARR) for 2026, increasing it from USD 10 billion to USD 13 billion. Among them, the revenue forecast for Z.AI AI this year was raised by 35%. Guotou Securities International previously indicated optimism about the GLM model leading Chinese models to enhance competitiveness and market share in global large model competition, with potential for exponential commercial growth. YOFC (06869) saw a net buy of HKD 478 million. According to GL-Fibercable and Rebio Group's estimates, global fiber optic demand is expected to reach 760 million/889 million core kilometers in 2026/2027, with year-on-year growth of 27.6% and 17.0%, respectively. Institutions pointed out that the overall domestic production rate of fiber optic preforms in China has risen from 65% in 2023 to over 80% by 2026, but there are still structural gaps in high-end G.657.A2 and specialized optical rods for hollow core fibers. BABA-W (09988) received a net buy of HKD 275 million. According to news from Alibaba Cloud's official account, Alibaba's Qwen-Image-3.0 image generation model has officially been launched on the Qwen AI platform and is open to all users. The flagship version Qwen-Image-3.0-Pro and the standard version Qwen-Image-3.0-Standard have simultaneously opened APIs, with image generation starting from HKD 0.18 per image. The API is live on the Qwen AI platform, and overseas users can access it via Qwen Cloud. China National Offshore Oil Corporation (00883) faced a net sell-off of HKD 616 million. U.S. Treasury Secretary Janet Yellen stated that the U.S. is in talks with Iran, and an agreement to reopen the Strait of Hormuz could be reached as early as this week, which would achieve freedom of navigation, with Iran not charging a toll. Following the easing of tensions between the U.S. and Iran, international oil prices significantly retreated, with Brent crude falling below USD 80 at one point. TRACKER FUND OF HONG KONG (02800) experienced a net sell-off of HKD 2.031 billion. Soochow noted that since July, the Hang Seng Index has cumulatively risen over 13%, outpacing major global stock indices and developing a relatively independent rebound against the backdrop of significant adjustments in the global technology sector. The firm believes that the Hong Kong stock market remains in a window for rebound, with clear structural opportunities, but it faces short-term risks of "stagnating growth" or pullbacks, and the ability to continue the rebound in August mainly depends on overseas developments. In addition, GigaDevice Semiconductor Inc. (03986) received a net buy of HKD 92.8 million, while Victory Giant Technology (02476) and Tencent (00700) saw net sell-offs of HKD 7.15 million and HKD 844 million, respectively.