Northbound funds | Northbound transactions totaled net purchases of 13.364 billion yuan, with Northbound investors aggressively buying shares in internet technology companies and selling Tracker Fund of Hong Kong (02800) for over 1.3 billion Hong Kong dollars.

On July 15th, in the Hong Kong stock market, Beishui had a net buying of 13.364 billion Hong Kong dollars. Among them, the Shanghai-Hong Kong Stock Connect had a net buying of 4.497 billion Hong Kong dollars, and the Shenzhen-Hong Kong Stock Connect had a net buying of 8.866 billion Hong Kong dollars. The stocks with the most net buying by Beishui are BABA-W (09988), Tencent (00700), and KNOWLEDGE ATLAS (02513). The stocks with the most net selling by Beishui are TRACKER FUND OF HONG KONG (02800), Semiconductor Manufacturing International Corporation (00981), and Hua Hong Grace Semiconductor (01347). Active trading stocks in the Shanghai-Hong Kong Stock Connect Active trading stocks in the Shenzhen-Hong Kong Stock Connect Beishui funds heavily grabbed shares of technology and networking companies. BABA-W (09988), Tencent (00700), MEITUAN-W (03690) received net buying of 30.9 billion, 18.05 billion, and 12.86 billion Hong Kong dollars respectively. OpenRouter data shows that Chinese AI large models have been the most called upon for eleven consecutive weeks globally, with Tencent's Hy3 and DeepSeek-V4-Flash dominating the top six. Guosen stated that in terms of performance, the AI sector in Hong Kong currently has the strongest certainty, with low valuations of some leading companies in the NETDRAGON sector, offering significant potential for valuation recovery. Focus will be on the performance of related AI large models in the future. KNOWLEDGE ATLAS (02513) received a net buy of 1.539 billion Hong Kong dollars. Founder Tang Jie recently released an internal memo titled "The Giant Waves Are Coming", with the core information being that KNOWLEDGE ATLAS is preparing to launch the "Touch High Plan" in the next two years, challenging the physical and algorithmic limits of current technology and aiming for the next height of AGI. Specifically, this includes focusing on long-range missions, autonomous intelligent entities, self-training, and model security. YOFC (06869) received a net buy of 9.59 billion Hong Kong dollars. YOFC reported a profit increase, with an expected net profit of approximately 2.4 billion to 3 billion yuan in the first half of the year, representing a year-on-year growth of 711% to 914%. Morgan Stanley pointed out that the previous 50% correction had fully absorbed concerns on the supply side, with AI-driven fiber optic supercycle demand unchanged. The current valuation is highly attractive, indicating a ripe entry opportunity. GigaDevice Semiconductor Inc. (03986) received a net buy of 7.41 billion Hong Kong dollars. The IPO pricing of Changxin Technology has been confirmed at 8.66 yuan per share, and considering the total share capital of the company after listing, the estimated market value of Changxin Technology will be about 580 billion yuan. However, the market previously expected that the market value of Changxin Technology at the time of issuance would exceed one trillion yuan. According to Securities Times, an industry insider told reporters that the pricing of Changxin Technology's IPO fully considered the current situation of the company, with the company's valuation gradually increasing over time as the company grows, which is long-term oriented. Joinn Laboratories (06127) surged by 30% today. Some Beishui funds sold at higher levels, with a net selling of 117.4 million Hong Kong dollars throughout the day. Joinn Laboratories is expected to achieve a net profit attributable to shareholders of 600 million to 900 million yuan in the first half of the year, representing a growth rate of 884.9% to 1377.4%. The breakout in performance is not from the core business of security principle orders with greatly improved profits, but from the appreciation of the company's experimental monkey assets. During the period, the fair value changes of biological assets such as experimental monkeys contributed a net profit of 703 million to 777 million yuan. Hua Hong Grace Semiconductor (01347) and Semiconductor Manufacturing International Corporation (00981) received net sell of 2.3 billion and 6.53 billion Hong Kong dollars respectively. Morgan Stanley recently warned that more signs indicate limited pricing power for chip manufacturers, suggesting that these stocks may have risen too high due to optimistic sentiment about AI spending. Analysts at the bank noted that AI data center tech stacks are being redesigned to include self-designed chips with lower costs, and many large-scale cloud service providers are now designing these chips themselves. TRACKER FUND OF HONG KONG (02800) saw a net selling of 1.328 billion Hong Kong dollars. Guosen believes that there is a certain degree of tightening in global marginal liquidity, with weaker liquidity in Hong Kong as the US Dollar Index breaks through. In terms of performance, the certainty of the AI sector is the strongest. Additionally, we believe that the market's logic of expecting the Fed to raise interest rates may have gone too far, as cold non-farm payrolls and gradually declining inflation may provide an opportunity for valuation recovery in commodities. In addition, KB LAMINATES (01888) received a net buy of 1.3 billion Hong Kong dollars. While China Life Insurance (02628) saw a net selling of 1.41 billion Hong Kong dollars.