Northbound funds | Northbound trading recorded a net sell of 457 million. AI hardware stocks showed divergence. Northbound funds sold off GENSCRIPT BIO (01548) for over HK$200 million.

On October 13 in the Hong Kong stock market, northbound trading recorded a net sell of HK$457 million. Among this, Stock Connect (Shanghai) recorded a net buy of HK$44 million, while Stock Connect (Shenzhen) recorded a net sell of HK$501 million. The stocks with the largest net buys from northbound funds were Cig Shanghai (06166) and KB LAMINATES (01888). The stocks with the largest net sells from northbound funds were Semiconductor Manufacturing International Corporation (00981), YOFC (06869), and Hua Hong Grace Semiconductor (01347). Active stocks under Stock Connect (Shanghai) Active stocks under Stock Connect (Shenzhen) AI hardware concept stocks showed divergence, with Cig Shanghai (06166) and KB LAMINATES (01888) receiving net buys of HK$262 million and HK$172 million, respectively, while YOFC (06869) suffered a net sell of HK$429 million. Broadcom CEO Hock Tan said on Monday at the DBS Bank Asia Future Forward Summit held in Singapore that the entire industry is stepping up infrastructure construction to support increasingly complex AI large models. Compared with semiconductors, memory chips, or power shortages, financing issues may become a greater obstacle to AI expansion. Intel CEO Lip-Bu Tan also expressed concerns about financing issues. CNOOC (00883) suffered a net sell of HK$146 million. The U.S. Department of the Treasury's Office of Foreign Assets Control issued an announcement stating that it would temporarily ease sanctions on Russian diesel trade, allowing Russian diesel to enter the global market, valid until April 7, 2027. Trump also announced that U.S. and Russian leaders had reached an agreement on Russia supplying diesel to the United States and global markets. The Kremlin stated that consultations related to the energy ceasefire mentioned by Trump are still ongoing. GENSCRIPT BIO (01548) suffered a net sell of HK$229 million. From October 6 to October 12, U.S. AI pharmaceutical company Twist retreated more than 25% after hitting a high. Industrial believes that in the short term it is disturbed by the periodic pullback of comparable U.S. companies, while the long-term industrial trend of AI4S still has potential. The bank said that demand for AI4S will increase significantly in 2026, related investment and financing will remain active, orders and performance of upstream gene and protein synthesis suppliers will grow rapidly, and incremental demand is expected to extend downstream. Hua Hong Grace Semiconductor (01347) and Semiconductor Manufacturing International Corporation (00981) suffered net sells of HK$302 million and HK$975 million, respectively. CLSA released a research report stating that China's semiconductor demand remained stable in the third quarter, but tight upstream supply dragged down deliveries. The bank said that wafer foundry capacity utilization remains high, driven by AI-related chip demand, the return of overseas orders, and domestic manufacturing, with average selling prices continuing to rise quarter over quarter, but increased investment in new capacity and depreciation of advanced processes will constrain margin improvement. In addition, BABA-W (09988) and Tencent (00700) suffered net sells of HK$4.97 million and HK$18.65 million, respectively.