Northbound Capital Trends | Northbound capital recorded a net sell of HKD 8.571 billion, institutions expect Tencent's capital expenditure to be moderate, and Northbound capital increased its holdings in Tencent by over HKD 1 billion throughout the day

According to Zhitong Finance APP, on July 30th, the Hong Kong stock market saw a net sell-off of HKD 8.571 billion by northbound funds. Among them, the net sell-off through the Hong Kong Stock Connect (Shanghai) was HKD 3.494 billion, and through the Hong Kong Stock Connect (Shenzhen) was HKD 5.077 billion.

The stocks with the highest net purchases by northbound funds were Tencent (00700), GIGADEVICE (03986), and CNOOC (00883). The stocks with the highest net sell-offs were TRACKER FUND (02800), SMIC (00981), and Alibaba-W (09988).

Active trading stocks through Hong Kong Stock Connect (Shanghai)

Active trading stocks through Hong Kong Stock Connect (Shenzhen)

Tencent (00700) received a net purchase of HKD 1.012 billion. Bank of China International released a research report stating that investors are increasingly focused on Tencent's earnings per share forecast and AI investment returns. The bank predicts that Tencent's capital cash expenditure will reach RMB 160 billion to 180 billion by 2026, but believes Tencent will maintain a cautious investment pace to preserve business resilience. The bank stated that it is still too early to discuss the scale of capital expenditures beyond 2027, and expects Tencent to adopt a more moderate capital expenditure plan compared to this year after 2027.

GIGADEVICE (03986) received a net purchase of HKD 380 million. GIGADEVICE announced plans to repurchase A-shares, with a total repurchase amount of no less than RMB 1 billion and no more than RMB 2 billion, and all repurchased shares will be used for cancellation and reduction of registered capital. In addition, the actual controller Zhu Yiming plans to increase his stake in the company by no less than RMB 1 billion, and Zhu Yiming has also committed not to reduce his holdings within 12 months starting from July 29, 2026.

CNOOC (00883) received a net purchase of HKD 331 million. The conflict between the U.S. and Iran has escalated again, with signs of spreading to surrounding areas. The latest EIA data shows that commercial crude oil inventories fell sharply by 7.2 million barrels last week, and the SPR decreased by 3.8 million barrels to 30.77 million barrels, the lowest level in over 40 years. Everbright Securities released a research report stating that the performance of the "three oil giants" is expected to benefit fully from rising oil prices Zhipu (02513) received a net purchase of HKD 68.63 million. Recently, Hugging Face disclosed a cybersecurity incident initiated by an autonomous AI Agent. During the investigation of the incident, its security team ultimately chose to deploy the open-source model GLM-5.2 locally to complete the attack forensic analysis, rather than using a commercial model API. On the evening of July 23, Zhipu stated through its official Weibo account that this incident further confirms the value of the open-source GLM 5.2.

Changfei Optical Fiber Cable (06869) experienced a net sell of HKD 431 million. Corning's second-quarter performance slightly exceeded expectations, but its stock price once plummeted over 20%. Analysts pointed out that Corning's net profit margin has significantly surged, confirming that AI data center optical fibers have shifted from scale-driven to high value-added driven. However, the implied quarter-on-quarter growth rate for the third quarter is declining, and the company plans to significantly increase optical fiber and optical connection capacity, indicating that the global supply bottleneck is being actively broken.

Tracker Fund (02800) faced a net sell of HKD 1.972 billion. Everbright Securities believes that the current market has sufficiently reflected negative factors, such as the ongoing escalation of the US-Iran geopolitical conflict and the valuation digestion pressure in the AI sector. However, the overall domestic economic fundamentals remain relatively weak, and the strength of China's economic recovery and the sustainability of corporate profits still require more data verification. The market lacks the most critical driving force to initiate a trending market. Currently, the Hong Kong stock market, especially the Hang Seng Technology Index, is in a complex bottoming phase.

In addition, Hua Hong Semiconductor (01347), Alibaba-W (09988), and SMIC (00981) experienced net sells of HKD 12.41 million, HKD 1.121 billion, and HKD 1.279 billion, respectively