On May 8, the Hong Kong stock market saw a net inflow of HK$13.17 billion from northbound capital. The Shanghai-Hong Kong Stock Connect recorded a net purchase of HK$10.13 billion, while the Shenzhen-Hong Kong Stock Connect recorded a net purchase of HK$3.04 billion. The stocks with the highest net buying volume were KUAISHOU-W (01024), the Tracker Fund (02800), and Alibaba-W (09988). The stocks with the highest net selling volume were Changfei Optical Fiber & Cable (06869), Huahong Semiconductor (01347), and Health 160 (02656).
KUAISHOU-W (01024) received net purchases totaling HK$1.75 billion. Recently, its Kling AI introduced a native 4K output feature in its Video 3.0 model series, supporting one-click generation of cinema-quality videos, making it the industry's first video model with native 4K output. Analysis suggests this advancement is expected to increase adoption among professional creators and enterprise clients globally, accelerating monetization and improving the company's profit quality.
The Tracker Fund (02800) attracted net buying of HK$965 million. Market views indicate that while the narrative of Hong Kong stocks' value attractiveness persists, it is shifting from broad valuation recovery to structural defense and strategic positioning. Hong Kong stocks are currently in a phase of being valuation-supported but constrained by external liquidity pressures, presenting significant potential for valuation recovery if external pressures ease.
Alibaba-W (09988) saw net purchases of HK$389 million. Amid intensified competition in China's large language models and the rise of agentic AI and super apps, demand for token usage continues to grow strongly. Corporate AI adoption is enhancing cloud pricing power, with increased use of AI agents and the expansion of consumer AI assistants. The AI cloud sector remains a preferred segment in China's internet space, with Alibaba being a core recommendation.
Semiconductor stocks showed continued divergence. SMIC (00981) received net purchases of HK$265 million, while Huahong Semiconductor (01347) experienced net selling of HK$145 million. This follows reports of slowed capital expenditure execution by major tech firms in the first quarter, attributed not to weak demand but to physical supply chain and construction capacity constraints. The supply-demand imbalance in computing infrastructure is intensifying.
CNOOC (00883) garnered net buying of HK$182 million. Geopolitical developments remain volatile; any U.S.-Iran agreement could lead to a sentiment-driven oil price correction. However, prolonged disruptions in the Strait of Hormuz are deepening global oil supply-demand tensions, suggesting limited downside with a structurally higher price floor.
Pop Mart (09992) received net purchases of HK$133 million. Notably, an influential investor announced switching entirely from a coal stock to Pop Mart, citing the company's strong IP operational capabilities, rapid overseas channel growth, and diversified business expansion, which are expected to enhance IP operational depth. Current valuations are seen as having room for upward revision.
Tencent (00700) attracted net buying of HK$109 million. While short-term margins may be diluted by AI investments, Tencent's strong core cash flow, upcoming model upgrades, and integration of agentic functions within its ecosystem position it well for long-term growth.
Additionally, DeepTech (01384) saw minor net buying of HK$5.92 million, while Health 160 (02656) and Changfei Optical Fiber & Cable (06869) saw net selling of HK$22.5 million and HK$198 million, respectively.