Northbound funds | Northbound trading saw a net sell of 2.426 billion yuan Northbound trading selling semiconductor and PCB concept stocks Tencent (00700) to raise nearly 1.7 billion Hong Kong dollars

On June 5, the Hong Kong stock market saw net sales of 2.426 billion Hong Kong dollars by the Northbound trading. Among them, the Shanghai-Hong Kong Stock Connect saw net purchases of 4.988 billion Hong Kong dollars, while the Shenzhen-Hong Kong Stock Connect saw net sales of 7.415 billion Hong Kong dollars. The top stocks in terms of net purchases by Northbound trading were Tencent (00700), XIAOMI-W (01810), and POP MART (09992). The top stocks in terms of net sales were Semiconductor Manufacturing International Corporation (00981), KB LAMINATES (01888), and HUA HONG SEMI (01347). Active trading stocks for Shanghai-Hong Kong Stock Connect and Shenzhen-Hong Kong Stock Connect include Tencent (00700) receiving net purchases of 1.686 billion Hong Kong dollars. On the news front, it was reported that Tencent is set to launch an "embedded AI intelligent body" for WeChat, with the necessary compliance approval process set to start this month. Citi Research pointed out that the WeChat AI Agent can be seen as Tencent's "free option", providing downside protection with a PE of 13 times even if it is not successful. If successfully launched and forms an ecosystem loop, it could become Tencent's "third growth curve" after games and WeChat, supporting a revaluation of its valuation. POP MART (09992) received net purchases of 410 million Hong Kong dollars. On June 3, according to the HKEX disclosure, Duan Yongping's stake in POP MART stock has increased from 5.69% to 6.04%. When asked why he bought POP MART, Duan Yongping said he is bullish on Wang Ning. Duan Yongping said, "I used to be an 'entrepreneur', and I can see how amazing Wang Ning is. He is still so young and can work well for at least 25 years. The compound interest is amazing." YOFC (06869) received net purchases of 236 million Hong Kong dollars. Data shows that the price of A2-class preforms has risen from 22 yuan to 30 yuan/equivalent core kilometer at the beginning of 2025 to 160 yuan/equivalent core kilometer in 2026, an increase of nearly 550%. Public information shows that YOFC is the only company in the world that controls the three mainstream preform preparation processes of PCVD, OVD, and VAD, and has built a "preform-fiber-cable" full industrial chain competition barrier, with a preform self-sufficiency rate of 100% and the world's largest production capacity. QINGSONG HEALTH (02661) received net purchases of 53.14 million Hong Kong dollars. Recently, QINGSONG HEALTH's evidence-based medical intelligent body product "Zhengyuanfang" has been officially embedded in the service platform "Yiluqing Song" for doctors and medical professionals. In addition, the company's strategic cooperations have intensified, with the signing of a comprehensive cooperation agreement with Hubei COL Global Co., Ltd. to jointly build an authoritative and traceable medical data base. The company also reached a strategic cooperation with the high-end comprehensive medical service brand "Yiheyou" to jointly launch a high-end family membership health management plan covering the prevention, diagnosis, treatment, and recovery cycle. Chip stocks and PCB concept stocks were sold off, with Victory Giant Technology (02476), HUA HONG SEMI (01347), KB LAMINATES (01888), and Semiconductor Manufacturing International Corporation (00981) receiving net sales of 1.15 billion, 3.18 billion, 3.33 billion, and 27.83 billion Hong Kong dollars, respectively. On the news front, Broadcom's latest revenue figures slightly missed market expectations, casting a shadow over the AI investment frenzy that has been driving the market, prompting investors to reevaluate whether AI infrastructure investments have already priced in future growth expectations. In addition, a recent report from SemiAnalysis suggested that NVIDIA's Rubin NVL72 SOCAMM DRAM capacity may be halved. Furthermore, XIAOMI-W (01810) and 51WORLD (06651) received net purchases of 477 million and 32.58 million Hong Kong dollars, respectively. ZTE Corporation (00763) and BABA-W (09988) saw net sales of 25.6 million and 55.04 million Hong Kong dollars, respectively.