On June 5th in the Hong Kong stock market, northbound capital recorded a net outflow of HK$2.43 billion.

Within this, the Shanghai-Hong Kong Stock Connect saw a net inflow of HK$4.99 billion, while the Shenzhen-Hong Kong Stock Connect experienced a net outflow of HK$7.41 billion.

The stocks attracting the largest net northbound purchases were TENCENT (00700), Xiaomi Corporation (01810), and POP MART (09992).

The stocks facing the heaviest net northbound selling were SMIC (00981), KB LAMINATES (01888), and Hua Hong Semiconductor (01347).

Key Purchases by Northbound Funds

TENCENT (00700) received a net purchase of HK$1.69 billion.

This follows reports that Tencent is set to launch an "embedded AI agent" for its WeChat platform, with the compliance review process for public launch potentially starting as soon as this month.

Analysts have noted that this AI agent could be viewed as a strategic option for the company, offering potential for a new growth avenue alongside its core gaming and social media businesses.

POP MART (09992) saw a net purchase of HK$410 million.

Recent exchange filings show investor Duan Yongping increased his stake in the company's H-shares from 5.69% to 6.04%.

Duan cited confidence in the company's founder as a key reason for the investment, highlighting the long-term growth potential.

Yangtze Optical Fibre and Cable (06869) attracted a net purchase of HK$236 million.

Industry data indicates a significant price surge for certain preform products, with reports of increases nearing 550% from early 2025 levels.

The company is noted for its comprehensive in-house production capabilities across the optical fiber supply chain.

Easou Technology (02661) received a net purchase of HK$53.14 million.

The company has integrated its evidence-based medical AI product into a professional medical service platform and has announced several strategic partnerships in the healthcare data and services sector.

Sector-Specific Selling Pressure

Chip stocks and PCB (Printed Circuit Board) concept stocks faced significant selling pressure.

Shenghong Technology (02476), Hua Hong Semiconductor (01347), KB LAMINATES (01888), and SMIC (00981) saw net outflows of HK$115 million, HK$318 million, HK$333 million, and HK$2.78 billion, respectively.

This trend appears linked to concerns in the broader semiconductor sector, triggered by revenue figures from a major industry player that slightly missed market expectations, casting a shadow over the AI investment rally.

Additionally, a recent industry analysis report suggested a potential reduction in memory capacity for a forthcoming high-performance computing platform, contributing to the reassessment of AI infrastructure investment prospects.

Other Notable Trades

Xiaomi Corporation (01810) and 51VR (06651) received net purchases of HK$477 million and HK$32.58 million, respectively.

Conversely, ZTE Corporation (00763) and Alibaba Group (09988) faced net selling of HK$25.6 million and HK$55.04 million.