On May 26th, the Hong Kong stock market saw a net outflow of HK$968 million from northbound capital. Specifically, the Shanghai-Hong Kong Stock Connect recorded a net inflow of HK$2.861 billion, while the Shenzhen-Hong Kong Stock Connect recorded a net outflow of HK$3.829 billion. The stocks receiving the largest net purchases from northbound capital were Lenovo Group (00992), SMIC (00981), and Hua Hong Semi (01347). The stocks with the largest net sales were Tencent (00700), Alibaba-W (09988), and CSOP Hang Seng Tech ETF (03033).
Lenovo Group (00992) attracted net purchases of HK$780 million. Analysts noted that Goldman Sachs highlighted Lenovo's IDG operating margin remaining at 6.9%, higher than the same period last year, indicating manageable impacts from rising storage costs. Concurrently, its server business continues to expand, with the ISG operating margin rising to 3.6%. Furthermore, Lenovo's comprehensive solutions spanning devices, infrastructure, and software provide support for AI agents for both enterprises and individual consumers.
Northbound capital increased positions in semiconductor stocks. SMIC (00981) and Hua Hong Semi (01347) received net purchases of HK$655 million and HK$495 million, respectively. Analysts pointed out that CITIC Securities highlighted Huawei's proposed "Tao Law," guiding semiconductor industry development with a "time scaling" principle, which is expected to bring profound changes at the transistor, circuit, chip, and system levels. By leveraging domestic technological capabilities in areas such as 3D integration, advanced packaging, chip design-manufacturing co-optimization, and optical communication, and optimizing system topology to bridge short-term process node gaps, China's semiconductor industry is poised for accelerated development on a new track.
Pop Mart (09992) received net purchases of HK$324 million. Analysts noted that Huachuang Securities released a report stating that after the traffic effect of Labubu, the company's organizational and operational capabilities face greater tests. The decade of experience accumulated in the Chinese market will provide a reference for overseas expansion, empowering the company's long-term growth. Since the beginning of the year, the company has repurchased a cumulative 11.22 million shares, totaling HK$1.744 billion, demonstrating confidence in its long-term development.
Dongyue Group (00189) attracted net purchases of HK$275 million. Analysts noted that the White House officially confirmed that the previous administration announced a reassessment and slowdown in the phase-out schedule for third-generation refrigerants (HFCs); the UK's Department for Environment, Food & Rural Affairs announced a postponement of the HFC reduction plan originally set to start in 2027. Huatai Securities believes that extended usage periods overseas will provide more favorable support for HFC demand. Given that global HFC production capacity is primarily concentrated in China with limited overseas supply, Chinese refrigerant producers are expected to benefit significantly.
51VR (06651) received net purchases of HK$96.76 million. Analysts noted that 51VR's embodied intelligence data platform, Aperdata.ai, has officially launched. This platform primarily addresses the pain point of missing training and validation data for embodied intelligence, constructing a high-fidelity, physically constrained simulation training environment and synthetic data to accelerate AI's transition from the digital to the physical world.
Yangtze Optical Fibre and Cable (06869) experienced net sales of HK$526 million. Analysts noted that UBS previously released a report stating that the company's first-quarter net profit was 495 million yuan, below the buy-side market expectation of 800 million to 1 billion yuan, anticipating a negative market reaction in the short term. However, the bank maintains confidence in the company's profit growth over the coming quarters, believing that the full impact of rising fiber optic prices takes time to materialize. With data center demand continuing to increase, the company is believed to have the potential to meet the bank's full-year forecast.
Alibaba-W (09988) and Tencent (00700) saw net sales of HK$1.34 billion and HK$1.57 billion, respectively. Analysts noted that both Tencent and Alibaba simultaneously signaled increased AI capital expenditures. Tencent's single-quarter AI spending reached a new high of 37 billion yuan, while Alibaba clarified that future investments will far exceed the originally planned 380 billion yuan. Guolian Minsheng Securities pointed out that AI commercialization has entered a verification stage, with the competitive focus shifting from technology and computing power expansion to capital-intensive competition centered on capital expenditure efficiency.
Additionally, CNOOC (00883) and CSOP Hang Seng Tech ETF (03033) experienced net sales of HK$37.84 million and HK$638 million, respectively.