Northbound funds | Northbound trading net purchases amounted to 12.207 billion yuan, with domestic investors continuing to increase their holdings of Hong Kong ETFs, acquiring more than 3.7 billion Hong Kong dollars worth of the TRACKER FUND OF HONG KONG (02800).

On August 1st in the Hong Kong stock market, the net buy of Bei Shui reached 12.207 billion Hong Kong dollars, with a net buy of 5.575 billion Hong Kong dollars for Shanghai-Hong Kong Stock Connect and 6.632 billion Hong Kong dollars for Shenzhen-Hong Kong Stock Connect. The stocks that Bei Shui bought the most were TRACKER FUND OF HONG KONG (02800), Hang Seng H-Share Index ETF (02828), and XIAOMI-W (01810). The stocks that Bei Shui sold the most were INNOVENT BIO (01801), BABA-W (09988), and Semiconductor Manufacturing International Corporation (00981). In the active trading stocks of Shanghai-Hong Kong Stock Connect and Shenzhen-Hong Kong Stock Connect, Bei Shui continued to invest in Hong Kong ETFs, with TRACKER FUND OF HONG KONG (02800), Hang Seng H-Share Index ETF (02828), and CSOP Hang Seng TECH Index ETF (03033) receiving net buys of 3.744 billion, 1.719 billion, and 855 million Hong Kong dollars respectively. According to reports, the overall upward trend in the Hong Kong stock market is still healthy, and there are signs of a shift from previous risk aversion sentiment to improving fundamentals and positive policy expectations. However, there is an accumulation of short-term market overbought sentiment in terms of technical indicators. Looking ahead, the market is expected to continue to fluctuate upwards in the long term. XIAOMI-W (01810) received a net buy of 855 million Hong Kong dollars. On August 1st, Xiaomi Group's chairman Lei Jun announced on Weibo that in July, the delivery volume of Xiaomi cars exceeded 30,000 units, which was attributed to increased production capacity. Guosen's report stated that Xiaomi's Phase II Beijing plant will soon be put into production, with new capacity in the planning stage. It is expected that Xiaomi's car sales will reach 400,000 to 500,000 units in 2025 (depending on production capacity ramp-up) and exceed 800,000 units in 2026. There was a differentiation in tech stocks, with Tencent (00700), MEITUAN-W (03690), and KUAISHOU-W (01024) receiving net buys of 836 million, 766 million, and 202 million Hong Kong dollars respectively, while BABA-W (09988) faced a net sell of 202 million Hong Kong dollars. It is believed that overall the profitability of Hong Kong stocks is relatively strong, and assets related to the internet, new consumption, and innovative drugs are relatively scarce, with current valuations still being low, offering a high long-term investment value. Huatai's report suggests that there are still good opportunities in the Hong Kong stock market, with greater potential for the recovery of the Hang Seng Tech Index. INNOSCIENCE (02577) received a net buy of 363 million Hong Kong dollars. Innoscience was the only Chinese chip company selected as a partner by NVIDIA in updating the list of partners for their 800V DC power supply architecture. Innoscience recently announced a collaboration with NVIDIA to promote the large-scale implementation of the 800V DC power supply architecture in AI data centers. This architecture is specifically designed for the efficient power supply of future megawatt-level computing infrastructure, offering significant advantages in system efficiency, heat loss, and reliability compared to traditional 54V power supplies, and can support a 100-1000 times increase in AI computing power. GUOTAI JUNAN I (01788) faced a net sell of 48.99 million Hong Kong dollars. The Hong Kong "Stable Coin Regulations" officially took effect on August 1st. The Hong Kong Monetary Authority revealed the regulatory system for stable coin licenses on the afternoon of July 29, with stable coin license applications imminent. It is anticipated that the initial number of licenses issued will be very limited, with the current requirements being likened to those for banks. It was announced on June 25 that GUOTAI JUNAN I had obtained a full license for virtual asset trading in Hong Kong, sparking high market attention and positive feedback. Additionally, CSPC PHARMA (01093) and STARPLUS LEGEND (06683) received net buys of 252 million and 6.55 million Hong Kong dollars respectively, while INNOVENT BIO (01801) and Semiconductor Manufacturing International Corporation (00981) faced net sells of 402 million and 177 million Hong Kong dollars respectively.