Northbound funds | Northbound trading recorded a net selling of HK$8.614 billion, with domestic funds selling Hong Kong stock ETFs once again. Kingboard Holdings (00148) saw aggressive buying throughout the day, with over HK$1.8 billion in transactions.

On June 9th, in the Hong Kong stock market, Northbound funds had a net selling of 8.614 billion Hong Kong dollars. Among them, the Shanghai-Hong Kong Stock Connect had a net selling of 0.98 billion Hong Kong dollars, and the Shenzhen-Hong Kong Stock Connect had a net selling of 85.16 billion Hong Kong dollars. The stocks that Northbound funds bought the most were KINGBOARD HLDG(00148), KB LAMINATES(01888), and Tencent(00700). The stocks that Northbound funds sold the most were TRACKER FUND OF HONG KONG(02800), CSOP Hang Seng TECH Index ETF(03033), and Hang Seng H-Share Index ETF(02800). Northbound funds heavily invested in KINGBOARD HLDG(00148) and KB LAMINATES(01888) with net purchases of 1.83 billion and 1.232 billion Hong Kong dollars respectively. With 70% of global PPE resin supply disrupted, PCB prices surged. It is expected that KB LAMINATES will release strong earnings in mid-July for the first half of the year. Based on the expectation that the average selling price of upstream electronic glass fibers will inflate more than expected, leading to a price increase in copper-clad laminates by the end of June, the company's profit forecast for 2026 to 2028 has been raised by 6% to 18%. It is forecasted that its net profit in the first half of 2026 will surge by 273% year-on-year to 3.48 billion Hong Kong dollars, with revenue increasing by 74% year-on-year to 16.6 billion Hong Kong dollars. Tencent(00700) received a net buying of 0.887 billion Hong Kong dollars. WeChat announced its official provision of convenient access to the WeChat AI ecosystem for developers. JD.com was the first to access the service for internal testing, focusing on e-commerce, takeout, and logistics businesses. Meituan also stated that, as part of the first batch of internal testing teams, they had been collaborating with the WeChat team on integration and testing. Northbound funds increased their holdings in semiconductor stocks. Semiconductor Manufacturing International Corporation(00981) and Hua Hong Semiconductor Limited(01347) received net buying of 0.814 billion and 0.668 billion Hong Kong dollars, respectively. BOCOM INTL data shows that major overseas CSP capital expenditures are expected to increase by 90% year-on-year in 2026. They believe that there is further room for upward adjustment in CSP capital expenditures in mainland China. The bank has revised its judgment on the high prosperity of AI by 12 months, believing that the high prosperity will last at least until the end of 2027. YOFC(06869) received a net buying of 0.506 billion Hong Kong dollars. Amazon announced a multi-billion dollar agreement with Corning, a manufacturer of glass and optical fiber technology, to supply fiber optics, cables, and connectivity solutions to support Amazon's expanding data center infrastructure across the U.S. Additionally, the CEO of Fujikura, a Japanese fiber optic cable manufacturer, stated that orders from large-scale cloud computing companies in the U.S. cover almost all major customers, strong demand is keeping supply tight, with some customers agreeing to pay higher prices for the company's premium products. Northbound funds sold off Hong Kong stock ETFs again. TRACKER FUND OF HONG KONG(02800), CSOP Hang Seng TECH Index ETF(03033), and Hang Seng H-Share Index ETF(02800) faced net selling of 11.41 billion, 2.597 billion, and 1.905 billion Hong Kong dollars, respectively. Guotai Haitong previously stated that Hong Kong stocks will face liquidity headwinds in the second half of the year. July and September are the two peak unlocking periods within the year, with pressure concentrated in specific sectors. At the same time, the IPO is effectively optimizing the market structure of Hong Kong stocks. After the headwinds are resolved, the perception of cost-effectiveness of Hong Kong stocks is expected to return. Most sectors of Hong Kong stocks have lower valuation percentile rankings, and after international risks and liquidity issues ease, they are expected to return to the most basic understanding of cost-effectiveness. Additionally, CNOOC(00883), 51WORLD(06651), received net buying of 0.778 billion and 82.97 million Hong Kong dollars respectively, while BABA-W(09988) faced net selling of 51.78 million Hong Kong dollars.