Northbound funds | Northbound trading saw a net purchase of 3.463 billion yuan. Northbound investors continued to increase their holdings in KNOWLEDGE ATLAS (02513) throughout the day, with total purchases exceeding 3 billion Hong Kong dollars.

On June 16, the Hong Kong stock market saw a net buying of 3.463 billion Hong Kong dollars by Northbound investors. Of this, the Hong Kong Stock Connect (Shanghai) saw a net buying of 4.89 billion Hong Kong dollars, while the Hong Kong Stock Connect (Shenzhen) saw a net selling of 1.427 billion Hong Kong dollars. The stocks with the highest net buying by Northbound investors were TRACKER FUND OF HONG KONG (02800), KB LAMINATES (01888), and KINGBOARD HLDG (00148). The stocks with the highest net selling by Northbound investors were Tencent (00700), BABA-W (09988), and CNOOC (00883). In terms of active trading stocks through the Hong Kong Stock Connect (Shanghai), TRACKER FUND OF HONG KONG (02800) saw a net buying of 2.35 billion Hong Kong dollars. Huatai mentioned that there has been no substantial change in the fundamentals of the Hong Kong stock market itself, but the level of panic has reached extreme levels in the past two years, with some sectors reflecting fully released short selling pressures. This extreme emotional bottom itself serves as a safety cushion, allowing for speculation on short-covering rebounds. Northbound investors continued to boost their holdings in KB LAMINATES (01888) and KINGBOARD HLDG (00148), with net buying of 1.699 billion and 1.4 billion Hong Kong dollars respectively. The total net buying amount for these two stocks has exceeded 11 billion Hong Kong dollars since last week. At the beginning of June, the commonly used specifications of electronic cloths completed the fifth round of price hikes this year, with an average price of 7.4 yuan/meter, representing a 100% increase compared to the low point in Q3 2025. Guotai Haitong pointed out that the logical price rise in the industry chain remains unchanged, with tight inventory for upstream 7628 electronic cloths and high operating rates for copper-clad plate companies in the midstream. The smooth pricing mechanism from cloths to plates, combined with the judgment of the bank, indicates a high certainty of the industry chain continuing to raise prices in July and August under the backdrop of accelerated price hikes in the off-season. KNOWLEDGE ATLAS (02513) saw a net buying of 823 million Hong Kong dollars. JP Morgan expressed optimism about KNOWLEDGE ATLAS AI's exhibited behavior as a price setter, as it has doubled API prices this year while maintaining continuous business volume growth, fully validating the market's recognition of its large model value. The bank raised the revenue forecast for KNOWLEDGE ATLASAI in the fiscal years 2026 to 2030 by 26% to 42%. China International Capital Corporation also mentioned that the company's rapid iterative model capabilities are exceeding the market's and the bank's expectations, and they are optimistic about the accelerated release of long-term API value by the company. Northbound investors once again increased their holdings in semiconductor stocks. Semiconductor Manufacturing International Corporation (00981) and HUA HONG GRACE (01347) saw net buying of 475 million and 239 million Hong Kong dollars respectively. The world's top chip foundry, TSMC, stated that due to inflationary factors, operating costs have increased slightly, and the company does not rule out the possibility of raising chip prices, while also affirming that there will not be a situation of short-term price surges. BABA-W (09988) and Tencent (00700) saw net selling of 1.632 billion and 1.638 billion Hong Kong dollars respectively. HSBC released a research report stating that the performance of the Chinese internet sector has lagged behind this year, mainly due to various investor concerns. While some factors may still pose short-term pressures, the bank believes that stocks with immediate catalysts still have opportunities. In addition, Chinese large internet stocks are still discounted by 47% in terms of P/E compared to their American counterparts, while Chinese AI concept stocks have a 40% P/E discount. The bank believes that concerns about the recent token price war in MaaS may be excessive. In addition, Changfei Optical Fiber (06869) saw a net buying of 284 million Hong Kong dollars, while CNOOC (00883) saw a net selling of 579 million Hong Kong dollars.