Northbound funds | North Water Net Sold for 5.82 Billion, Domestic Investors Continue to Grab Shares in Jian Tao Holdings, Selling YOFC (06869) Over 2.4 Billion Hong Kong Dollars at High Prices.

On June 22, the net selling volume of Beishui in the Hong Kong stock market was 5.82 billion Hong Kong dollars. Among them, the net buying volume of Shanghai-Hong Kong Stock Connect was 1.626 billion Hong Kong dollars, and the net selling volume of Shenzhen-Hong Kong Stock Connect was 7.445 billion Hong Kong dollars. The stocks with the highest net buying volume by Beishui were KINGBOARD HLDG (00148), KB LAMINATES (01888), Semiconductor Manufacturing International Corporation (00981). The stocks with the highest net selling volume by Beishui were YOFC (06869), BABA-W (09988), and Tencent (00700). Hong Kong Stock Connect (Shanghai) Active Trading Stocks Hong Kong Stock Connect (Shenzhen) Active Trading Stocks Beishui funds continued to buy up the Jian Tao system, with KINGBOARD HLDG (00148) and KB LAMINATES (01888) receiving net buying volumes of 3.332 billion and 1.43 billion Hong Kong dollars respectively. Citigroup stated that it has frequently raised profit forecasts for KINGBOARD HLDG's subsidiary KB LAMINATES by 62%, mainly due to higher-than-expected average selling prices for copper-clad laminates (CCL) and electronic glass fiber cloth. This is enough to completely offset the impact of the recent stock split on KB LAMINATES, which reduced KINGBOARD HLDG's shareholding from 67% to 62%. Citigroup expects KINGBOARD HLDG to evolve structurally into an almost pure PCB and CCL concept stock in the era of AI. These two businesses are expected to account for a higher proportion of its expected total net profit in 2028, increasing from 63% in 2025 to 87%. Semiconductor Manufacturing International Corporation (00981) and Hua Hong Grace Semiconductor (01347) received net buying volumes of 0.82 billion and 0.542 billion Hong Kong dollars respectively. According to the Science and Technology Innovation Board Daily, sources in the supply chain point out that the monthly output of TSMC's 28-nanometer main production base, Fab 15A, has dropped from 200,000 pieces at the beginning of this year to 150,000 pieces, a decrease of over 25% compared to the beginning of the year. TSMC plans to support the middle layer with more 28-nanometer capacity and gradually withdraw from low-margin orders. TRACKER FUND OF HONG KONG (02800) suffered a net selling volume of 0.841 billion Hong Kong dollars. Huatai stated that overall, the central reversal of Hong Kong stocks still depends on the progress of large AI companies and the catalysis of consumption recovery. The appropriate time has not yet come, but Huatai's previous expectations of a short-term technical rebound have also been suppressed by the persistent short-selling forces. Looking ahead, attention should be focused on stocks with high short interest and marginal improvement in profit expectations such as media and innovative drugs in the short term. Tencent (00700) and BABA-W (09988) suffered net selling volumes of 1.153 billion and 1.181 billion Hong Kong dollars respectively. UBS published a research report stating that the China internet sector ETF has declined by 18% since the beginning of the year, mainly due to weak macroeconomic conditions, increased investment in AI, and the impact of online music and other vertical areas affected by AI. The bank believes that the Chinese internet sector will continue to fluctuate in the short term. However, there are signs of stabilization in the market. YOFC (06869) surged by 33% to a historic high, with some Beishui funds selling at high levels, resulting in a net selling volume of 2.475 billion Hong Kong dollars. Influenced by the sharp increase in demand for AI data centers in North America, fiber optic supplier Tongcai decided to raise the price of DCI interconnection cables by 30% due to slow capacity expansion, and significantly raise performance guidance, leading to a sharp rise in stock price. Corning is also facing delivery pressures and plans to expand production of fiber optic capacity for supply to Nvidia. In addition, Cig Shanghai (06166) suffered a net selling volume of 0.214 billion Hong Kong dollars.