Northbound funds | Northbound trading recorded a net purchase of 11.031 billion. Northbound funds increased their positions in Hong Kong stock ETFs and technology stocks, with a rush to buy the TRACKER FUND OF HONG KONG (02800), exceeding 4.7 billion Hong Kong dollars.

On August 3, the Hong Kong stock market saw net purchases of HKD 11.031 billion from northbound capital. Among these, net purchases through the Shanghai-Hong Kong Stock Connect totaled HKD 6.428 billion, while net purchases through the Shenzhen-Hong Kong Stock Connect amounted to HKD 4.603 billion. The stocks with the highest net purchases from northbound capital were TRACKER FUND OF HONG KONG (02800), BABA-W (09988), and Tencent (00700). The stocks with the highest net sales were Semiconductor Manufacturing International Corporation (00981), Hua Hong Grace Semiconductor (01347), and KB LAMINATES (01888). Active stocks through the Shanghai-Hong Kong Stock Connect Active stocks through the Shenzhen-Hong Kong Stock Connect TRACKER FUND OF HONG KONG (02800) and CSOP Hang Seng TECH Index ETF (03033) reported net purchases of HKD 4.749 billion and HKD 317 million, respectively. BOCOM International pointed out that the Hong Kong Hang Seng Index and the Hang Seng Technology Index rebounded after adjustments in June, benefiting from a recovery in liquidity, valuation repair, and profit improvements, suggesting a foundational potential for further upward movement in the future. It is recommended to adopt a "barbell" investment structure with catalysts on both ends: one side is high-elasticity technology growth assets, and the other side consists of assets benefiting from re-inflation and stable cash flow. BABA-W (09988) received a net purchase of HKD 4.168 billion. Alibaba officially launched Qianwen 3.8-Max, featuring a total parameter count of 2.4 trillion and 95 billion activated parameters, making it the largest and most capable model in the Qianwen family to date. This is also the first time Qianwen has open-sourced a Max-level model. Benchmark tests indicate that its programming and general intelligence capabilities are comparable to Anthropic's Fable5, with some metrics exceeding it, showcasing significant autonomous execution capabilities in long-range tasks such as chip design, quantitative research, and e-commerce simulations. Tencent (00700) received a net purchase of HKD 2.432 billion. Huayuan Securities believes that Tencent has a strong long-term ecological barrier and is currently entering a new cycle of AI investment narratives. Its Hongyuan series of models has preliminarily demonstrated that the company's model capabilities are not significantly lagging behind major domestic competitors. Products like WorkBuddy and WeChat AI Agent are gradually proving that the company's AI offerings for both B2B and B2C are becoming increasingly viable. XIAOMI-W (01810) attracted a net purchase of HKD 293 million. Recently, Xiaomi's second product lineup, the Xiaomi Pengcheng, was officially launched, complementing the previously released SU7 and YU7 series. Both models are expected to officially hit the market in September this year. CICC released a research report optimistic about Q3 2026, anticipating that the joint deliveries of SU7, YU7, and the Pengcheng series will sustain the company's growth in vehicle sales and aid in profit recovery. GigaDevice Semiconductor Inc. (03986) experienced a net sell-off of HKD 173 million. On the evening of July 29, GigaDevice Semiconductor Inc. issued multiple announcements. The chairman, Zhu Yiming, confirmed he would not reduce his holdings over the next 12 months and intends to increase his stake in the company by no less than HKD 1 billion. Zhu Yiming also proposed a share buyback plan of no less than HKD 1 billion and no more than HKD 2 billion. It is noteworthy that the company also announced a plan for Zhu Yiming to decrease his holdings, where from May 6 to June 12, 2026, he will liquidate a total of HKD 4.4 billion through sell-offs. Semiconductor Manufacturing International Corporation (00981) and Hua Hong Grace Semiconductor (01347) saw net sell-offs of HKD 1.063 billion and HKD 402 million, respectively. CMB International ranked the industry as TSMC > Hua Hong Grace Semiconductor > Semiconductor Manufacturing International Corporation. Hua Hong is valued higher due to its greater exposure in AI power simulation, better profit expansion trajectory, and the potential value of asset injection from Hualiwei. In contrast, SMIC has downgraded to a "hold" rating due to moderate growth trends and the continued burden on its balance sheet from expansion and acquisitions. Additionally, MEITUAN-W (03690) saw a net purchase of HKD 580 million, while YOFC (06869) and KB LAMINATES (01888) experienced net sell-offs of HKD 33.24 million and HKD 310 million, respectively.