On August 13, the Hong Kong stock market saw net buying of 36.67 billion HKD from Southern Capital. Specifically, the Shanghai-Hong Kong Stock Connect recorded a net buying of 37.71 billion HKD, while the Shenzhen-Hong Kong Stock Connect experienced a net selling of 1.04 billion HKD. The top stocks by net buying included TENCENT (00700), SMIC (00981), and Hua Hong Semiconductor (01347). Conversely, Cambridge Technology (06166) was the top net sold stock.

TENCENT (00700) fell 4% after its earnings report, with net buying of 56.16 billion HKD throughout the day. Tencent reported second-quarter capital expenditure of 52.8 billion, far exceeding market expectations. CLSA noted that Tencent's second-quarter results were in line with forecasts; however, the firm anticipates Tencent's annual capital expenditure could reach 200 billion RMB this year, leading to a 2% and 6% reduction in its 2026 and 2027 adjusted net profit estimates, respectively. Nevertheless, the upcoming expansion of the Miniverse app trial and the expected release of the Hunyuan 4 model later this year are seen as drivers for further valuation re-rating.

SMIC (00981) and Hua Hong Semiconductor (01347) garnered net buying of 8.34 billion and 8.22 billion HKD, respectively. Both companies released their earnings after the market close. SMIC's second-quarter revenue exceeded $3 billion, with gross margin rising to 25.3%, showcasing comprehensive profitability improvements. Management expects further revenue and gross margin growth in the third quarter. Hua Hong Semiconductor achieved a record second-quarter sales revenue of $717.5 million, up 26.8% year-over-year and 8.6% quarter-over-quarter; its gross margin stood at 16.5%, a 5.6 percentage point increase year-over-year and a 3.5 percentage point rise quarter-over-quarter.

Kingboard Laminates (01888) saw net buying of 3.46 billion HKD. Bank of America Securities reported that Kingboard Laminates' vertical integration has significantly enhanced its earnings sensitivity to upstream material shortages and price increases. The bank predicts a 130% expansion in Kingboard's average CCL selling price this year and a 40% increase in the first half of next year. The analysis suggests that a 100% increase in the average CCL selling price would boost the company's CCL gross margin by 28 percentage points this year and generate 200% earnings per share growth.

MINIMAX-W (00100) received net buying of 3.37 billion HKD. The Hong Kong Exchange recently announced that MINIMAX qualifies for the fast entry rule of the HKEX Tech 100 Index and will be included in the HKEX Tech 100 Index and the HKEX Tech & US Tech 100 Index after market close on August 12, effective from August 13. Notably, MINIMAX was added to the Stock Connect program on August 6.

Yangtze Optical Fibre and Cable (06869) saw net buying of 1.63 billion HKD. Daiwa stated that Yangtze Optical benefits from the current strong upcycle in the optical fiber industry, supported by its technological leadership and the upside potential of its optical interconnect business. The optical interconnect division is expected to have a compound annual growth rate of 137% in gross profit, driving a 135% compound annual growth rate in net profit from 2025 to 2028.

Additionally, Alibaba-W (09988) and GigaDevice (03986) received net buying of 1.89 billion and 1.39 billion HKD, respectively. Meanwhile, Cambridge Technology (06166) faced net selling of 47.84 million HKD.