Northbound funds | Northbound trading saw a net inflow of 24.955 billion yuan, with Northbound investors seizing the opportunity to buy Hong Kong stock ETFs on dips. Throughout the day, they increased their holdings in the Tracker Fund of Hong Kong (02800) by over 12.9 billion Hong Kong dollars.

On May 15th, the net purchase of Northbound funds in the Hong Kong stock market was 24.955 billion Hong Kong dollars. Among them, the net purchase of Hong Kong Stock Connect (Shanghai) was 17.151 billion Hong Kong dollars, and the net purchase of Hong Kong Stock Connect (Shenzhen) was 7.804 billion Hong Kong dollars. The stocks with the most net purchases by Northbound funds were TRACKER FUND OF HONG KONG (02800), Hang Seng H-Share Index ETF (02828), and CSOP Hang Seng TECH Index ETF (03033). The stocks with the most net sales by Northbound funds were BABA-W (09988), YOFC (06869), and XXF (02473). Active trading stocks in the Hong Kong Stock Connect (Shanghai) and the Hong Kong Stock Connect (Shenzhen) were mentioned. Northbound funds took advantage of opportunities to buy Hong Kong stock 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 purchases of 12.91 billion, 4.737 billion, and 2.9 billion Hong Kong dollars respectively. In terms of news, Everbright Overseas pointed out that the bottom area of the Hong Kong stock market has already emerged, but the reversal timing has not arrived yet, and structural opportunities should take priority. The market has already factored in negative factors to a large extent, and the return of passive overseas funds and continued inflow of southbound funds have provided solid value support for the Hong Kong stock market. However, active foreign funds representing global long-term capital have not yet returned in large scale, resulting in a lack of the most crucial drive for a trending market. Northbound funds increased their holdings in chip stocks such as HUA HONG SEMI (01347) and Semiconductor Manufacturing International Corporation (00981), with net purchases of 775 million and 670 million Hong Kong dollars, respectively. In terms of news, Semiconductor Manufacturing International Corporation reported a first quarter revenue of 17.617 billion yuan, a year-on-year growth of 8.1%; net profit attributable to shareholders of 1.361 billion yuan, a year-on-year growth of 0.4%; second quarter guidance is for a revenue increase of 14% to 16% on a quarterly basis, and a gross margin guidance of 20% to 22%. Huahong's first quarter sales revenue was $660.9 million, a year-on-year growth of 22.2%; gross margin of 13.0%, an increase of 3.8 percentage points year-on-year; net profit attributable to shareholders was $20.9 million, a significant year-on-year increase. Montage Technology (06809) received a net purchase of 459 million Hong Kong dollars. In terms of news, Montage Technology's Chairman and CEO Yang Chonghe stated that the shift of AI from training to inference and the explosion of new applications like Agent have a positive impact on the global interconnect chip market expansion. With its leading advantage in the iteration of DDR5 sub-generation and its layout in technologies like MRCD/MDB, PCIe/CXL, the company is expected to continue benefiting from this industry trend. Tencent (00700) received a net purchase of 2.15 billion Hong Kong dollars. In terms of news, CMSC International released a report stating that Tencent's first quarter performance overall met expectations. AI continues to drive accelerated growth of Tencent's core business; it is expected that the WeChat Agent will be launched in the third quarter of this year and become a core advantage for Tencent's differentiated competition. The report continues to view Tencent's unique market position and growth opportunities driven by agentic AI. YOFC (06869) suffered a net sale of 1.87 billion Hong Kong dollars. In terms of news, UBS previously released a research report stating that YOFC's net profit for the first quarter was 495 million yuan, lower than the market's buy-side expectation of 800 million to 1 billion yuan, causing a short-term negative market response. However, the bank remains confident in the company's future earnings growth, believing that the rise in fiber optic prices will fully reflect in due time, and with increasing demand for data centers, the company is expected to achieve the bank's full year forecast. BABA-W (09988) suffered a net sale of 3.39 billion Hong Kong dollars. In terms of news, Alibaba Group CEO Wu Yongming has clearly stated that in order to achieve the goal of "commercial revenue exceeding 100 billion US dollars in the next five years in cloud computing and AI" as mentioned at the end of the previous quarter, the computing assets held by Alibaba Cloud in the future will be more than ten times that of AI before the outbreak in 2022, and the capital expenditure in the next three years could far exceed the previous commitment of 380 billion yuan. Additionally, XIAOMI-W (01810) received a net purchase of 70.07 million Hong Kong dollars, while XXF (02473) suffered a net sale of 52.27 million Hong Kong dollars.