On July 16, Hong Kong's stock market witnessed a net inflow of HK$1.603 billion through Northbound trading channels. The Shanghai-Hong Kong Stock Connect recorded net purchases of HK$2.009 billion, while the Shenzhen-Hong Kong Stock Connect saw net outflows of HK$406 million. MEITUAN-W (03690), CCB (00939), and Kangfang Biotech (09926) emerged as the top acquisition targets for mainland capital. Conversely, Tencent (00700), Xiaomi Group (01810), and SMIC (00981) faced the heaviest selling pressure.
MEITUAN-W (03690) attracted substantial inflows totaling HK$856 million. The food delivery giant recently unveiled its innovative "satellite store" model—a lightweight format specialized for online orders—with ambitious plans to expand these outlets to over 10,000 locations by late 2025 through brand partnerships. Industry sources also indicate MEITUAN-W has developed tactical measures to counter Alibaba's Taobao Flash Sales, aiming to neutralize the impact of its rival's subsidy-driven order growth.
CCB (00939) secured net purchases worth HK$759 million. JPMorgan's research highlights an 8% potential upside for banking profits by 2026, fueled by net interest margin recovery under "anti-involution" policies—particularly benefiting joint-stock banks with up to 14% earnings impact. BOCI International further noted that banking stocks dominate Northbound inflows, absorbing RMB150.4 billion year-to-date, representing 20% of total southbound capital.
Kangfang Biotech (09926) received HK$129 million in net buys after partner Summit Therapeutics announced imminent FDA submission for Ivonescimab's NSCLC treatment based on Phase III HARMONi data. BOCOM International projects strong overseas approval prospects given limited existing therapies and Ivonescimab's superior efficacy over chemotherapy. The firm also anticipates additional overseas registrations for assets like Cadonilimab within 2-3 years.
Kuaishou (01024) drew HK$100 million in net inflows. UBS maintains its "buy" rating with an HK$83.4 target, citing undervalued advertising/e-commerce growth potential and AI-driven upside catalysts, noting Q2 ad acceleration remains underappreciated by markets.
Alibaba (09988) faced net outflows of HK$29.63 million as brokerages highlighted Taobao Flash Sales' massive subsidies as a near-term profit drag. The platform's RMB50 billion subsidy initiative launched in early July accelerated expansion but substantially increased costs. Guosen Securities and Orient Securities both project cloud revenue growth will accelerate to approximately 22% YoY in Q1 FY2026.
SMIC (00981) saw HK$99.44 million in net outflows after JPMorgan noted Nvidia's H20 GPU export license approval for China—while boosting data center operators—dampened sentiment toward local semiconductor leaders like SMIC.
Tencent (00700) endured massive net selling of HK$1.757 billion ahead of its Q2 results. Haitong International expects earnings to largely meet consensus, forecasting game revenue of RMB56 billion (+16% YoY) for Q2 and RMB230 billion (+17% YoY) for 2024. Seasonal slowdowns may hit flagship titles like Honor of Kings and Peacekeeper Elite, though new releases Delta Action and DNF Mobile should partially offset declines while overseas games remain stable.
Other notable moves included net buys of HK$113 million for Jiankangzhilu (02587) and HK$60.66 million for Guotai Junan International (01788), while Xiaomi Group (01810) registered net outflows of HK$267 million.