Northbound funds | Northern capital traded a net purchase of 20.184 billion, and Northern capital aggressively purchased Hong Kong Stock ETF throughout the day, buying nearly 7.3 billion Hong Kong dollars of the Tracker Fund of Hong Kong (02800).

On July 25th, in the Hong Kong stock market, Northbound trading saw a net purchase of 20.184 billion Hong Kong dollars. Among them, the Shanghai-Hong Kong Stock Connect saw a net purchase of 11.474 billion Hong Kong dollars, and the Shenzhen-Hong Kong Stock Connect saw a net purchase of 8.71 billion Hong Kong dollars. The top three stocks with the highest net purchase by Northbound investors were TRACKER FUND OF HONG KONG (02800), Hang Seng H-Share Index ETF (02828), and China Life Insurance (02628). The top stock with the highest net sale by Northbound investors was GUOTAI JUNAN I (01788). The most active trading stocks in the Shanghai-Hong Kong Stock Connect and the Shenzhen-Hong Kong Stock Connect were also listed. Northbound investors were bullish on Hong Kong ETFs, with TRACKER FUND OF HONG KONG (02800) and Hang Seng H-Share Index ETF (02828) seeing net purchases of 7.28 billion and 1.34 billion Hong Kong dollars respectively. Huatai believes that the Hong Kong stock market in the third quarter may still experience high volatility, but the pressure factors are lower than expected, and the market may start earlier. With a new round of external tariff negotiations, China's relative advantage has increased; factors such as the relaxation of U.S. financial regulations, continued Federal Reserve rate cuts, stablecoin expansion, and adjustments in the duration of treasury bonds all support a further downturn in the U.S. dollar index, which is beneficial for the performance of Hong Kong stocks. Positive changes are also seen internally with increased efforts against overwork, reduced negative pressures in the internet and e-commerce sector, and positive changes in real estate policies. China Life Insurance (02628) saw a net purchase of 9.54 billion Hong Kong dollars. According to a research report by UBS, China Life Insurance has risen by 16% in the past four trading days. This is due to some investors considering China Life Insurance as a substitute indicator for Chinese interest rates, given its large market value and focus on life insurance businesses. Additionally, some investors expect the price gap between A-shares and H-shares to further narrow, with a larger discount for China Life Insurance's H-shares compared to its A-shares. Investors find its valuation attractive. Semiconductor Manufacturing International Corporation (00981) saw a net purchase of 7.81 billion Hong Kong dollars. In the second quarter of 2025, TSMC achieved a net profit of nearly 398.3 billion New Taiwan dollars, a nearly 61% year-on-year increase, setting a new record for single-quarter net profit, with net profit growth reaching a nearly 3-year high. Institutions point out that the global semiconductor industry continues to show optimistic growth trends; leading wafer foundries may raise prices, and the outlook for the second quarter performance is optimistic. With global computing power investments at high levels, performance of companies in the industry chain may continue to materialize. Tech stocks were also popular. MEITUAN-W (03690), Tencent (00700), and BABA-W (09988) saw net purchases of 330 million, 1.19 billion, and 82.36 million Hong Kong dollars respectively. According to Pu Yin International, the upcoming release of semi-annual report results may result in a market with high expectations. If there is a correction due to differences in expectations, there is a potential shift from crowded sectors such as new consumption, innovative drugs, and banks towards less crowded, undervalued sectors with the potential to exceed expectations, such as the tech sector and AI industry chains. 3SBIO (01530) saw a net purchase of 3.15 billion Hong Kong dollars. 3SBIO announced that all preconditions of the license agreement for the PD-1/VEGF bispecific antibody (SSGJ-707) with Pfizer have been met, and the agreement took effect on July 24th. On the same day, both parties entered into a subscription agreement, issuing 31.1425 million shares to Pfizer, raising approximately 785 million Hong Kong dollars. After completion, Pfizer will hold a 1.28% stake in the company. Around 80% of the net proceeds will be used to enrich the global clinical and preclinical project pipeline and improve production facilities; the remaining balance will be allocated for general corporate purposes. Additionally, XIAOMI-W (01810) saw a net purchase of 7.7 billion Hong Kong dollars, while GUOTAI JUNAN I (01788) witnessed a net sale of 1.16 billion Hong Kong dollars.