On June 2nd in the Hong Kong stock market, mainland investor funds recorded a net purchase of HK$2.223 billion.
Specifically, the Shanghai-Hong Kong Stock Connect saw a net buy of HK$2.018 billion, while the Shenzhen-Hong Kong Stock Connect recorded a net buy of HK$206 million.
Key Purchases and Sales
The stocks receiving the highest net purchases from mainland funds were SMIC (ASX: 00981), CNOOC (ASX: 00883), and Akeso, Inc. (ASX: 09926).
Conversely, the stocks facing the highest net sell-offs were TENCENT (ASX: 00700), Yangtze Optical Fibre and Cable Joint Stock Limited Company (ASX: 06869), and Hua Hong Semiconductor Limited (ASX: 01347).
Semiconductor Sector Divergence
Performance among chip stocks was mixed. SMIC (ASX: 00981) attracted a net purchase of HK$950 million.
In contrast, Hua Hong Semiconductor Limited (ASX: 01347) experienced a net sell-off of HK$217 million.
This activity follows news that China's National Integrated Circuit Industry Investment Fund has disclosed progress on share reductions involving several leading semiconductor firms, including SMIC.
Analysts view the fund's divestments as a routine market exit strategy.
However, some industry observers note that after a sustained rally, the trading concentration in the A-share semiconductor sector has reached historically high levels, suggesting potential for a short-term technical correction or increased volatility.
Energy and Biotech Highlights
CNOOC (ASX: 00883) received a net purchase of HK$383 million.
Market attention is on geopolitical tensions, with Iran reportedly pausing dialogue with the US and plans by Iran and allied groups to potentially block the Strait of Hormuz, a critical oil transit chokepoint.
Analysts at HSBC have warned that commodities are in a "super squeeze," which could worsen if the Strait of Hormuz remains effectively closed.
Akeso, Inc. (ASX: 09926) saw a net purchase of HK$344 million.
The company presented overall survival analysis from its HARMONi-6 study at the ASCO 2026 plenary session, marking the first time a China-originated innovative oncology drug has been selected for this prestigious forum in its 61-year history.
Citi responded by raising its probability of success estimates for the drug's first-line squamous non-small cell lung cancer indication in China and globally, also increasing its assumed potential market share in China.
Tech Sector Activity
Alibaba Group Holding Limited (ASX: 09988) attracted a net purchase of HK$31.99 million.
Its cloud division, Alibaba Cloud, announced the launch of Qwen3.7-Plus, a multimodal agent model that integrates visual perception with code generation and tool calling to execute complex tasks.
TENCENT (ASX: 00700) surged over 10%, marking its largest single-day gain since November 2022.
Despite the rally, mainland investors took profits, resulting in a net sell-off of HK$2.109 billion for the stock.
This selling pressure followed reports that Tencent is close to launching an AI assistant within its WeChat platform, with a potential official release process starting as early as this month.
Analysts have noted Tencent's unique advantage in potentially converting its vast mini-program ecosystem into skills for AI agents.
Additionally, Yangtze Optical Fibre and Cable Joint Stock Limited Company (ASX: 06869) faced a net sell-off of HK$242 million.