On August 14 in the Hong Kong stock market, northbound capital recorded net purchases of HK$1.034 billion, with Shanghai-Hong Kong Stock Connect contributing net purchases of HK$1.645 billion while Shenzhen-Hong Kong Stock Connect saw net sales of HK$611 million. The top net purchases by northbound capital were CHINA LIFE (02628), BABA-W (09988), and LI AUTO-W (02015). The largest net sale was Tencent (00700).

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

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

CHINA LIFE (02628) attracted net purchases of HK$1.353 billion. On the news front, for the first time in six years, an insurance company has raised its stake in another insurer, with China Ping An recently increasing its holdings in China Taiping H-shares. Additionally, Soochow Securities noted that the reduction in predetermined interest rates will continue to drive down new business liability costs. As new business gradually dilutes existing business, the average cost of existing business will also improve progressively. Combined with the recent stabilization and upturn in long-term interest rates and strengthening stock market, the interest spread loss pressure in the life insurance industry is expected to ease.

BABA-W (09988) received net purchases of HK$455 million. According to LatePost, from August 7 to 9, Taobao Flash Purchase's daily order volume exceeded 100 million for three consecutive days. Recently, Taobao launched a comprehensive membership system that integrates resources from Ele.me, Fliggy, Freshippo, Amap, Cainiao, and other Alibaba ecosystem platforms, comprehensively covering users' consumption scenarios including food, entertainment, clothing, housing, and transportation. This represents a landmark business move following the integration of Ele.me and Fliggy into China's e-commerce business group and Alibaba's strategic shift from e-commerce to a comprehensive consumption platform.

LI AUTO-W (02015) garnered net purchases of HK$352 million. Li Auto announced today an adjustment to its sales and service organizational structure. The "five major war zones" established by region in March this year have been dissolved, replaced by 23 regions directly managed by headquarters nationwide. Li Auto aims to channel all resources into supporting frontline experts and building user operation capabilities centered on retail stores.

Sanyou Pharmaceutical (01530) attracted net purchases of HK$304 million. The company recently announced completion of its share placement to Pfizer. CICC published a research report stating that Pfizer focuses on four major areas: breast cancer, genitourinary cancer, hematologic cancer, and thoracic tumors, planning to launch at least 8 blockbuster anti-cancer drugs by 2030. SSGJ-707, as a PD-1 and VEGF dual-target antibody, precisely matches Pfizer's core oncology treatment areas. Pfizer will focus on advancing SSGJ-707's clinical development in lung cancer, colorectal cancer, and breast cancer to address unmet clinical needs across multiple cancer types. The firm believes Pfizer's R&D strategy is highly compatible with 707's development.

CARsgen Therapeutics (09926) received net purchases of HK$222 million. The company announced today that the 2025 World Conference on Lung Cancer (WCLC) will be held in Barcelona, Spain from September 6-9. During the conference, CARsgen's overseas partner Summit Therapeutics will announce the results of the company's first-in-class PD-1/VEGF bispecific antibody drug Ivonescimab's first international multicenter registrational Phase III clinical HARMONi study. The study results have been selected by the conference as a Late-Breaking Abstract (LBA) for oral presentation and will be featured in the plenary session's presidential symposium.

Northbound capital continued increasing positions in chip stocks, with SMIC (00981) and Hua Hong Semiconductor (01347) receiving net purchases of HK$161 million and HK$17.75 million respectively. Founder Securities research indicated strong confidence in two major semiconductor directions: autonomous control and edge AI. The firm noted that autonomous control represents the strongest theme in semiconductors, with domestic supply chains strengthening across AI computing power, manufacturing, and packaging/testing. Despite current domestic AI computing chips still in catch-up mode, the firm believes market share is expected to gradually increase as products continue iterating and supply chain support capabilities progressively strengthen.

Tencent (00700) touched HK$600 intraday, reaching a four-year high. Some northbound capital took profits at high levels, with total net sales of HK$1.196 billion for the day. Tencent Holdings' second-quarter revenue increased 15% year-over-year to RMB184.5 billion, exceeding market estimates of RMB178.94 billion; net profit grew 17% year-over-year. During the quarter, Tencent's R&D investment reached RMB20.25 billion, up 17% year-over-year; capital expenditure increased to RMB19.1 billion, representing a 119% year-over-year surge, far exceeding the RMB8.7 billion from the same period last year. CSC International noted that Tencent's second-quarter results confirmed AI technology's deep empowerment across all business lines, with gaming, advertising, and enterprise services all demonstrating strong growth resilience, while improved gross margins further released profit elasticity.

Additionally, Xiaomi Corporation-W (01810) and Guotai Junan International (01788) received net purchases of HK$55.04 million and HK$20.82 million respectively.