Northbound funds | Northbound trading recorded a net sell of 1.376 billion; CITIC SEC (06030) increases funding for international business; Northbound trading increased holdings by over 500 million Hong Kong dollars throughout the day.

On August 11, in the Hong Kong stock market, net sales by northbound funds totaled HKD 1.376 billion. Among them, the northbound trading (Shanghai) recorded a net buying of HKD 2.004 billion, while the northbound trading (Shenzhen) saw a net selling of HKD 3.381 billion. The stocks with the highest net buying from northbound funds were CITIC SEC (06030), XIAOMI-W (01810), and MINIMAX-W (00100). The stocks with the highest net selling were BABA-W (09988), KB LAMINATES (01888), and LINGBAO GOLD (03330). Active stocks in northbound trading (Shanghai) Active stocks in northbound trading (Shenzhen) CITIC SEC (06030) had a net buying of HKD 555 million. On the evening of August 6, CITIC SEC announced the completion of a private placement of H-shares with a scale of RMB 16 billion. The proceeds from this issuance will be fully retained overseas to develop the company's international business. CITIC SEC plans to increase its capital for its subsidiary, CITIC SEC International, by no more than RMB 16 billion, which will be executed in one or several batches based on the companys capital situation and the business development of CITIC SEC International. XIAOMI-W (01810) saw a net buying of HKD 402 million. On August 2, Xiaomi announced a third round of price increases this year, with prices for the Xiaomi 17 series, REDMI K90 series, and REDMI Turbo 5 models increased by HKD 300 to HKD 500. Guosheng believes that as the rise in storage costs slows in Q3 and subsequent quarters, product structure optimizes, and price increase timing becomes smoother, the gross profit margin of the mobile business is expected to stabilize. MINIMAX-W (00100) recorded a net buying of HKD 121 million. HKEX announced that MINIMAX has met the rapid inclusion criteria for the HKEX Tech 100 Index and will be included in the HKEX Tech 100 Index and HKEX Tech and US Tech 100 Index after the market closes on August 12, officially effective from August 13. As a newly listed technology company in the Hong Kong market, MINIMAX's rapid inclusion in relevant indices reflects its market representativeness and enriches HKEX Tech Indexs coverage of innovative and technology enterprises. China National Offshore Oil Corporation (00883) recorded a net buying of HKD 58.73 million. The prospects of negotiations between the U.S. and Iran have been overshadowed again; on Monday, WTI crude oil futures surpassed USD 82 per barrel, with Brent approaching USD 88 per barrel. Trump stated that due to Iran's demand for war compensation, he has instructed U.S. negotiators to seek reparations from Iran. The Iranian side has stated that they will not negotiate with the U.S. until Trump's term ends. Furthermore, last week, U.S. strategic petroleum reserves (SPR) decreased by 6.1 million barrels to 298.7 million barrels. Semiconductor Manufacturing International Corporation (00981) and Hua Hong Grace Semiconductor (01347) recorded net buys of HKD 44.4 million and HKD 18.92 million, respectively. World Advanced indicated that the capacity utilization rate will continue to rise to 90% by 2026, while the price increase for foundry services is expected to remain steady in 2027. The 12-inch wafer factory is set to start mass production ahead of schedule, doubling AI business revenue contribution next year. Samsung Electronics' wafer foundry business is expected to achieve 100% utilization this year. GigaDevice Semiconductor Inc. (03986) saw a net selling of HKD 88.43 million. TrendForce analysts indicate that the supply-demand imbalance for DRAM is expected to continue until 2027, with price increases anticipated to extend into the second half of 2027. BOCOM INTL also believes that the overall storage markets supply-demand imbalance may persist until Q4 of 2027, and even afterward, any price changes may be more moderate compared to previous cycles. KB LAMINATES (01888) experienced a net selling of HKD 233 million. UBS noted that even if this cycle of traditional copper-clad laminate increases ends, they do not expect the companys earnings to decline as sharply as in past cycles because its expansion into AI-related upstream materials and copper-clad laminate businesses will bring new structural growth momentum. The companys vertically integrated business model is also a key differentiation advantage. The firm pointed out that the companys stock price has dropped about 60% from the June high, presenting an attractive opportunity. Additionally, GENSCRIPT BIO (01548) received a net buying of HKD 18.75 million, while BABA-W (09988), LINGBAO GOLD (03330), and Tencent (00700) experienced net selling of HKD 360 million, HKD 187 million, and HKD 61.7 million, respectively.