Northbound funds | Northbound Trading Net Buying Rises to 5.708 Billion, Mature Process Capacity May Face Shortages, Northbound Trading Rushes to Secure Over 2.1 Billion Hong Kong Dollars in Semiconductor Manufacturing International Corporation (00981).

On May 20th, in the Hong Kong stock market, Beishui conducted a net purchase of 5.708 billion Hong Kong dollars. Among them, the Hong Kong Stock Connect (Shanghai) had a net purchase of 2.998 billion Hong Kong dollars, and the Hong Kong Stock Connect (Shenzhen) had a net purchase of 2.71 billion Hong Kong dollars. The stocks with the most net purchases by Beishui were Semiconductor Manufacturing International Corporation (00981), China Mobile Limited (00941), and HUA HONG SEMI (01347). The stocks with the most net sales by Beishui were GigaDevice Semiconductor Inc. (03986) and BABA-W (09988). The most actively traded stocks in the Hong Kong Stock Connect (Shanghai). The most actively traded stocks in the Hong Kong Stock Connect (Shenzhen). Beishui funds started to re-invest in chip stocks, with Semiconductor Manufacturing International Corporation (00981) and HUA HONG SEMI (01347) receiving net purchases of 21.66 billion and 7.98 billion Hong Kong dollars respectively. On the news front, Morgan Stanley released a research report pointing out that TSMC and Samsung are integrating mature process capacity, which may create opportunities for second-tier wafer foundries. The report believes that the mature process up cycle is imminent. Due to the continued construction of AI infrastructure which may last for another two years, some smartphone/PC customers are starting to worry about mature process capacity shortages. The bank estimates that a mature process capacity shortage may occur in the second half of 2027. China Mobile Limited (00941) received a net purchase of 1.563 billion Hong Kong dollars. On the news front, the three major operators recently launched AI Token packages. Citigroup believes that amid sluggish growth in traditional services, AI Token provides a new revenue drive, repositioning telecom operators from traditional network providers to basic AI infrastructure suppliers. The three major operators may potentially undergo a re-evaluation of their valuation. Tencent (00700) received a net purchase of 0.409 billion Hong Kong dollars. On the news front, on May 19th, Tencent Cloud announced that the Hy3 preview and DeepSeek-V4-Pro models provided in the Tencent Cloud Intelligent Body Development Platform will end their limited free public testing and transition to formal commercial services, billed according to model calls. On May 20th, Tencent Cloud officially announced: For the Agent era, the full-chain integrated innovation upgrade from chip adaptation, computing power, models, to security and applications has been completed. CNOOC (00883) received a net purchase of 0.403 billion Hong Kong dollars. On the news front, HFI Research stated that the oil market could see a major turning point in the first week of June, and if the Strait of Hormuz remains closed at that time, the oil market may fall into real panic. As oil inventories hit historic lows, countries around the world may start panic buying and hoarding oil. YOFC (06869) received a net purchase of 0.216 billion Hong Kong dollars. On the news front, Huatai Research pointed out that in the first quarter of 26Q1, fiber optic prices showed a monthly upward trend, and there were still some low-priced long-term contracts/procurement orders in the company's delivery structure during the reporting period. As high-priced orders are concentrated in Q2, it is believed that profit elasticity is expected to accelerate release. Optimistic about the significant increase in performance in the fiber optic cable main business and the dual drive of the rising prosperity of diversified businesses such as fiber optic interconnect components. In addition, Montage Technology (06809) received a net purchase of 0.204 billion Hong Kong dollars. While BABA-W (09988) and GigaDevice Semiconductor Inc. (03986) experienced net sales of 1.68 billion and 0.47 billion Hong Kong dollars respectively.