Northbound Capital Trends | Northbound capital net purchases amounted to HKD 7.517 billion, with nearly HKD 6.2 billion added to the Tracker Fund throughout the day, while Alibaba and Tencent were sold off

According to Zhitong Finance APP, on July 22, the Hong Kong stock market saw a net purchase of HKD 7.517 billion by northbound funds. Among them, the net purchase by the Shanghai-Hong Kong Stock Connect was HKD 3.838 billion, and the net purchase by the Shenzhen-Hong Kong Stock Connect was HKD 3.679 billion.

The stocks with the highest net purchases by northbound funds were TRACKER FUND (02800), Hua Hong Semiconductor (01347), and Zhizhu (02513). The stocks with the highest net sales by northbound funds were Tencent (00700), Alibaba-W (09988), and JianTao Laminated Board (01888).

Active stocks in the Shanghai-Hong Kong Stock Connect

Active stocks in the Shenzhen-Hong Kong Stock Connect

TRACKER FUND (02800) received a net purchase of HKD 6.182 billion. Galaxy Securities believes that the Hong Kong stock market is currently in a phase of repair rather than the starting point of a broad market reversal. From a funding perspective, there has been a significant sign of capital inflow into the Hong Kong stock market recently, which is the core driving force behind the market's strength. The resonance between domestic and foreign capital in the technology sector has jointly boosted market sentiment. Overall, foreign capital remains cautious, with the inflow mainly consisting of passive and short-term flexible foreign capital, while global active long-term funds have not yet returned on a large scale.

Hua Hong Semiconductor (01347) received a net purchase of HKD 1.204 billion, while SMIC (00981) saw a net sale of HKD 454 million. According to informed sources, TSMC has discussed with clients about raising chip manufacturing prices by up to 10% by 2027 to cope with rising costs. It is reported that TSMC began negotiations on this matter in June and finalized a benchmark price increase of 5% to 10% this month. This price adjustment will take effect next year and will cover both advanced and mature semiconductors.

Zhizhu (02513) received a net purchase of HKD 362 million. Zhizhu AI has established a 1GW-level domestic AI computing power data center, all using domestic AI chips. On the same day, Zhizhu officially completed the acquisition of domestic AI heterogeneous computing power software company Zhongke Jiahe (XCore Sigma), which is regarded as one of the top AI Infra teams in the industry. These two actions have respectively filled Zhizhu's key capabilities in computing power supply and computing power release Lanqi Technology (06809) received a net purchase of HKD 33.52 million. Citigroup released a research report stating that Lanqi Technology's H-shares are trading at a premium compared to the company's A-shares, reflecting international investors' preference for this scarce AI-themed stock. The report pointed out that after Lanqi Technology announced its performance forecast for the first half of 2026 and its share repurchase plan, the bank followed up with the company's management. The bank believes that despite short-term stock price fluctuations, the company's business fundamentals remain strong. Benefiting from the improvement in the tight supply of substrates, both revenue and profit reached historical highs in the second quarter of this year, with contributions from new products further increasing.

GigaDevice Semiconductor (03986) faced a net sell of HKD 59.37 million. On July 20, China Life announced that eight asset management plans under China Life collectively sold approximately 1.1092 million shares of GigaDevice Semiconductor on July 8, with different asset management plans having a selling average price ranging from HKD 611.46 to HKD 624.61 per share, totaling over HKD 682 million in cashing out, with all transactions confirmed on the same day.

Changfei Fiber Optic Cable (06869) faced a net sell of HKD 328 million. Jefferies released a research report stating that although AI and geopolitical conflicts have driven fiber optic demand, the U.S. supply chain is also facing severe shortages. However, as China and the global market significantly expand production, the increase in supply will gradually eliminate the shortage, and Changfei Fiber Optic Cable may face the risk of losing market share, with profits in 2026 to 2027 potentially reaching a cyclical peak. Jefferies downgraded Changfei Fiber Optic Cable's rating from "Buy" to "Hold," but raised the target price from HKD 10.73 to HKD 153.74.

Alibaba-W (09988) and Tencent (00700) faced net sells of HKD 2.759 billion and HKD 2.764 billion, respectively. Huatai Securities released a research report stating that looking ahead, as hedging positions may have reached halfway, and short-selling funds are beginning to accumulate again, considering that A-shares and Korean stocks may gradually confirm a bottom, and the sentiment index for Hong Kong stocks is gradually recovering, a fund-driven rebound may be sustainable on a monthly basis. However, the core factor for a long-term reversal may still be the quality of the fundamental recovery after the earnings season ends.

In addition, Meituan-W (03690) received a net purchase of HKD 257 million, while Jiantao Laminated Board (01888) faced a net sell of HKD 819 million