On August 29, northbound capital recorded net purchases of HK$12.046 billion in the Hong Kong stock market, with Shanghai-Hong Kong Stock Connect contributing HK$1.342 billion in net buying and Shenzhen-Hong Kong Stock Connect accounting for HK$10.704 billion in net purchases. The top net purchases by northbound funds were Tencent (00700), BABA-W (09988), and INNOVENT BIO (01801). The stocks with the largest net selling pressure included XIAOMI-W (01810), Xinhua Insurance (01336), and SMIC (00981).

**Shanghai-Hong Kong Stock Connect Active Trading** **Shenzhen-Hong Kong Stock Connect Active Trading**

Tencent (00700) received net buying of HK$1.583 billion. On the news front, Tencent's mobile game "Valorant" has shown impressive market performance since its launch. Morgan Stanley forecasts the game's first-year total revenue could reach RMB 5-6 billion. The firm noted that following the recent successful launch of "Delta Force," the strong performance of "Valorant" mobile helps Tencent further expand its market share in the mobile FPS gaming sector. Morgan Stanley emphasized that based on Tencent's evergreen game portfolio's continued steady performance, combined with strong deferred revenue support from its international gaming business, the firm's confidence in Tencent's gaming business development has been further enhanced after the second quarter.

BABA-W (09988) attracted net buying of HK$1.149 billion. On the earnings front, Alibaba released its results after market close today, reporting Q1 FY2026 revenue of RMB 247.65 billion, up 2% year-over-year, compared to estimates of RMB 253.17 billion. Adjusted earnings per ADS for the first quarter were RMB 14.75. First quarter adjusted EBITDA reached RMB 45.74 billion. Quarterly capex was RMB 38.676 billion, up 220% year-over-year, hitting a record high. Core business revenue growth remained robust due to continued effective investments in the two strategic areas of AI+Cloud and consumer services.

INNOVENT BIO (01801) saw net buying of HK$718 million. According to market news, Dahwa Capital Markets released a research report stating that INNOVENT BIO's interim results exceeded expectations, with first-half revenue surging 50.6% to approximately RMB 6 billion, far surpassing market expectations. First-half adjusted net profit reached RMB 1.21 billion, already exceeding the firm's and market's full-year adjusted net profit forecasts. With the launch of a new product pipeline, the group has adopted a dual-engine growth strategy focusing on oncology treatment and general biomedicine. The group is committed to developing leading pipeline products for the global market and is positioned to become an important player in the global biopharmaceutical market.

GUOTAI JUNAN I (01788) received net buying of HK$261 million. According to company announcements, Guotai Junan International Holdings Limited, a subsidiary of Guotai Haitong Group, officially announced the launch of cryptocurrency trading services for Hong Kong investors to meet the growing demand for cryptocurrency markets among Hong Kong investors. The announcement stated that after successfully opening cryptocurrency accounts, clients can immediately trade various cryptocurrencies including Bitcoin and Ethereum.

XtalPi (02228) attracted net buying of HK$231 million. According to interim results, XtalPi reported revenue of RMB 517 million, up 403.83% year-over-year. Profit attributable to shareholders was RMB 82.795 million, compared to a loss of RMB 1.237 billion in the same period last year, achieving a turnaround to profitability and marking the group's first semi-annual profit. The improved financial performance during the period was mainly due to the group's partnership with DoveTree.

Xinhua Insurance (01336) faced net selling of HK$334 million. According to interim results, Xinhua Insurance reported total revenue of RMB 69.429 billion in the first half, up 25.5% year-over-year. Net profit attributable to shareholders of the parent company was RMB 14.799 billion, up 33.5% year-over-year. Basic earnings per share were RMB 4.74. The company proposed an interim cash dividend of RMB 0.67 per share. Xinhua Insurance President Gong Xingfeng stated that as of the end of Q2 2025, the company's three-year average annualized comprehensive return rate can fully cover the three-year average liability funding cost rate of the life insurance business, with the company maintaining liability costs at relatively low levels.

XIAOMI-W (01810) suffered net selling of HK$861 million. According to market analysis, Bank of Communications International previously released a research report noting that Xiaomi's second quarter results met market expectations. Automotive revenue increased 40% year-over-year, with gross margin reaching 26.4%, hitting a new record high. This quarter's performance was somewhat affected by the smartphone business. Regarding the smartphone business, gross margins may stabilize and recover with the launch of high-end new products. The smartphone gross margin trend this quarter declined faster than the institution's previous forecasts. The institution believes the impact of memory price increases on gross margins may persist at least until the end of 2025.

Additionally, Hua Hong Semiconductor (01347), Yangtze Optical Fibre and Cable (06869), and CStone Pharmaceuticals (09926) received net buying of HK$87.78 million, HK$21.81 million, and HK$20.80 million respectively. Meanwhile, SMIC (00981) faced net selling of HK$61.47 million.