Northbound funds | The Northbound capital saw a net sell of 10.621 billion. OpenAI "explosion" leads to further sell-off of AI hardware stocks by Northbound capital.

On August 19, the Hong Kong stock market saw a net sell of 10.621 billion HKD by Northbound capital. Among this, the Shanghai-Hong Kong Stock Connect recorded a net sell of 3.31 billion HKD, while the Shenzhen-Hong Kong Stock Connect had a net sell of 7.311 billion HKD. The stocks with the highest net buy from Northbound capital were Tencent (00700) and GigaDevice Semiconductor Inc. (03986). The stocks with the highest net sell were Hua Hong Grace Semiconductor (01347), TRACKER FUND OF HONG KONG (02800), and KB LAMINATES (01888). Active trading stocks on Shanghai-Hong Kong Stock Connect Active trading stocks on Shenzhen-Hong Kong Stock Connect Tencent (00700) saw a net buy of 321 million HKD. The "WanquanWorkBuddy," which provides AI smart office capabilities to the Guangdong government system, was officially launched. "Wanquan" is a provincial-level intelligent governance platform developed by Guangdong, and the "WanquanWorkBuddy" governmental intelligent application is innovatively developed based on this platform, integrating Tencent's AI office assistant WorkBuddy with governmental scenarios. Currently, several departments within Guangdong Province have initiated scenario docking and pilot exploration. GigaDevice Semiconductor Inc. (03986) received a net buy of 137 million HKD. GigaDevice Semiconductor Inc. announced that its operating revenue for the first half of the year reached 11.566 billion HKD, a year-on-year increase of 178.67%; the net profit attributable to shareholders of the listed company was 6.857 billion HKD, a year-on-year increase of 1091.50%; the net profit after excluding non-recurring gains and losses was 4.883 billion HKD, a year-on-year increase of 796.90%. Meanwhile, the net cash flow from operating activities amounted to 6.048 billion HKD, a year-on-year increase of 531.47%. China United Network Communications (00762) experienced a net sell of 267 million HKD. China United Network Communications reported an operating revenue of 201.4 billion HKD for the first half of the year, a year-on-year increase of 0.6%; the main business revenue was 178 billion HKD, a year-on-year decrease of 0.2%; the net profit attributable to its parent company was 4.1 billion HKD, a year-on-year decrease of 34.8%; and the total profit was 11.2 billion HKD, a year-on-year decrease of 36.6%. During the reporting period, the company announced it would not distribute an interim dividend for the fiscal year 2026. The company stated that profit changes were affected by adjustments to value-added tax and the pace of investment in labor costs, and the annual profit decline would narrow significantly. YOFC (06869), Semiconductor Manufacturing International Corporation (00981), KB LAMINATES (01888), and Hua Hong Grace Semiconductor (01347) faced net sells of 442 million HKD, 511 million HKD, 906 million HKD, and 2.968 billion HKD, respectively. OpenAI's revenue grew by 18% to 6.7 billion USD in the second quarter, but losses expanded further, with its business growth lagging behind Anthropic. The generative AI industry is accelerating its shift from a purely "scale competition" phase to a new phase focused on "commercial viability and return on investment (ROI) considerations." TRACKER FUND OF HONG KONG (02800) experienced a net sell of 1.79 billion HKD. Guoyuan International believes that domestic fundamentals, profit expectations, and incremental capital are becoming more important pricing variables. Therefore, the firm still considers the index remains volatile, with structural opportunities as the main scenario as the current baseline, and that a trend-based rise will require waiting for improvements in domestic demand and profits, as well as further inflows from the southbound and foreign capital.