On May 14th, the Hong Kong stock market saw net southbound capital outflows totaling HK$9.71 billion. Specifically, the Shanghai-Hong Kong Stock Connect recorded net outflows of HK$5.636 billion, while the Shenzhen-Hong Kong Stock Connect recorded net outflows of HK$4.077 billion.
The stocks receiving the highest net purchases via southbound capital were TENCENT (00700), Montage Technology (06809), and SICC (02631). Conversely, the stocks facing the highest net sell-offs were BABA-W (09988), China Mobile (00941), and SMIC (00981).
TENCENT (00700) attracted net purchases of HK$431 million. In related news, Citigroup published a research report stating that TENCENT's management is satisfied with the significant performance improvements of its Hunyuan 3.0 model, primarily due to high token usage and deep integration with its key internal products. Management indicated that integration with WeChat will proceed gradually and expressed confidence in expanding Hunyuan 3.0 to larger models in the future, leveraging practical use cases and feedback from internal operations and products. The bank maintains a positive outlook on TENCENT's AI strategy implementation alongside sustainable core profit growth.
Montage Technology (06809) received net purchases of HK$325 million. This follows Morgan Stanley's upward revision of its CPU market forecast. CLSA noted that as AI shifts from model training to inference, particularly with the development of AI agents, demand for server CPUs is rising steadily, positioning Montage Technology as a primary beneficiary of this strong demand. Additionally, the company's new products target a large, serviceable market with accelerating growth.
SICC (02631) saw net purchases of HK$149 million. The move comes after Citrini, a globally recognized AI supply chain research firm, released a significant report that ignited the global capital market's interest in the silicon carbide (SiC) sector. Citrini's report explicitly identified SiC as the most undervalued core theme within the AI field. The report's central argument is that AI power and AI infrastructure are mutually reinforcing, forming the core support for AI industry development, with SiC being the key incremental component for AI power.
Southbound capital continued to offload chip stocks. SMIC (00981) and Hua Hong Semiconductor (01347) faced net sell-offs of HK$412 million and HK$395 million, respectively. In related developments, it was reported that NVIDIA CEO Jensen Huang altered his travel schedule to accompany U.S. President Donald Trump on his visit to China. Soochow Securities pointed out that Huang has long lobbied the U.S. government to relax export controls on AI chips to China, successfully pushing the White House to approve H200 chip sales last year. Therefore, his potential attendance carries significant signaling importance. Market rumors during the session suggested that ten Chinese companies have received approval to purchase NVIDIA's H200 chips.
BABA-W (09988) experienced a substantial net sell-off of HK$3.795 billion. This follows the company's release of its quarterly results. AI-related product revenue accounted for over 30% of Alibaba Cloud's external commercial revenue for the first time, reaching RMB 8.971 billion for the quarter. It is projected that within the next year, AI-related product revenue will exceed 50%, becoming the primary growth engine for Alibaba Cloud. Alibaba Group CEO Eddie Wu stated that currently, almost no server card within Alibaba is idle. Based on demand projections for the next 3-5 years, he believes the return on investment for Alibaba's significant investments in AI data centers is highly certain. Considering the massive capital required to build computing power centers, capital expenditures may exceed the initially announced RMB 380 billion.
Additionally, Yangtze Optical Fibre and Cable (06869) and China Mobile (00941) faced net sell-offs of HK$21.44 million and HK$539 million, respectively.