Northbound funds | Northbound trading saw a net selling of 9.712 billion yuan, with Northbound investors continuing to reduce their holdings in semiconductor stocks. They also sold nearly 3.8 billion Hong Kong dollars of Alibaba (09988) shares after its performance announcement.

On May 14, the Hong Kong stock market saw a net sell-out of 9.712 billion Hong Kong dollars by northbound investors. Among them, the Shanghai-Hong Kong Stock Connect saw a net sell-out of 5.636 billion Hong Kong dollars, while the Shenzhen-Hong Kong Stock Connect saw a net sell-out of 4.077 billion Hong Kong dollars. The stocks that received the most net purchases by northbound investors were Tencent (00700), Montage Technology (06809), and SICC Co.,Ltd. (02631). The stocks that saw the most net sell-outs by northbound investors were BABA-W (09988), China Mobile Limited (00941), and Semiconductor Manufacturing International Corporation (00981). Active trading stocks through the Shanghai-Hong Kong Stock Connect were Tencent (00700), which received a net purchase of 4.31 billion Hong Kong dollars. According to reports, Citigroup released a research report stating that Tencent's management was satisfied with the significant performance improvement of the Mix 3.0 model, mainly due to high token usage and close integration with key products. The management mentioned that the integration with WeChat will gradually progress, showing confidence in expanding Mix 3.0 to bigger models gradually in the future. Citigroup continues to be optimistic about Tencent's AI strategy gradually being implemented and its core profits sustainably growing. Montage Technology (06809) received a net purchase of 3.25 billion Hong Kong dollars. Morgan Stanley raised the CPU market size. Lyon believes that as AI transitions from model training to inference, especially with the development of AI agents, the demand for server CPUs is continuously increasing, and Montage Technology is the major beneficiary of the strong demand for CPUs. Additionally, the company's new products have a large addressable market and are experiencing accelerated growth. SICC Co., Ltd. (02631) received a net purchase of 1.49 billion Hong Kong dollars. According to a report by the leading global AI supply chain research firm Citrini, they ignited the silicon carbide sector of global capital markets. The report explicitly listed silicon carbide as the most underestimated core theme in the AI field. The core of the report points out that AI power and AI infrastructure complement each other, which are the core support for the development of the AI industry, and silicon carbide is where the incremental AI power lies. Northbound investors sold chip stocks, with Semiconductor Manufacturing International Corporation (00981) and HUA HONG SEMI (01347) experiencing net sell-outs of 4.12 billion and 3.95 billion Hong Kong dollars, respectively. According to reports, NVIDIA CEO Huang Renxun changed his schedule to accompany US President Trump's visit to China. Soochow pointed out that Huang Renxun has long been lobbying the US government to relax export controls on AI chips to China. Today, there were rumors that 10 Chinese companies were approved to purchase the NVIDIA H200 chips. BABA-W (09988) experienced a net sell-out of 3.795 billion Hong Kong dollars. Alibaba released its first-quarter performance results, with AI-related product revenues accounting for over 30% of Alibaba Cloud's external commercialized revenue, reaching 8.971 billion RMB for the quarter. It is expected that in the next year, the proportion of AI-related product revenues will exceed 50%, becoming the main engine of revenue growth for Alibaba Cloud. Alibaba CEO Wu Yongming stated that there are almost no empty cards in Alibaba's servers now, and based on the demand situation in the next 3-5 years, he believes the return on investment for Alibaba's massive investment in AI data centers is very certain. Considering the massive investment in building computing power centers, capital expenditures may exceed the initially announced 380 billion RMB. Additionally, YOFC (06869) and China Mobile Limited (00941) experienced net sell-outs of 21.44 million and 5.39 billion Hong Kong dollars, respectively.