Zhi Tong Cai Jing·2025-08-28 10:13Summary of Key Points Core Viewpoint - The Hong Kong stock market experienced significant net selling from northbound capital, with a total net sell of 204.41 billion HKD on August 28, 2023, indicating a cautious sentiment among investors [1]. Group 1: Northbound Capital Activity - Northbound capital saw a net sell of 132.97 billion HKD through the Shanghai Stock Connect and 71.44 billion HKD through the Shenzhen Stock Connect [1]. - The most bought stocks included SMIC (00981), Kangfang Biotech (09926), and Huahong Semiconductor (01347), while the most sold stocks were the Tracker Fund of Hong Kong (02800), Hang Seng China Enterprises Index (02828), and Tencent (00700) [1]. Group 2: Stock Performance and Predictions - SMIC received a net buy of 8.92 billion HKD, while Huahong Semiconductor had a net buy of 4.63 billion HKD, reflecting a renewed interest in chip stocks [6]. - Kangfang Biotech saw a net buy of 5.11 billion HKD, supported by positive clinical trial results for its drug [6]. - China Life (02628) received a net buy of 3.83 billion HKD, with expectations of steady growth in profits and new business value (NBV) [7]. Group 3: Sector Trends and Market Sentiment - The technology sector showed mixed results, with Meituan (03690) and Alibaba (09988) receiving net buys of 3.33 billion HKD and 3.29 billion HKD, respectively, while Tencent faced a net sell of 5.83 billion HKD [7]. - The AI sector is expected to be a key driver for Hong Kong tech stocks, with improved market sentiment due to easing trade tensions between China and the U.S. [7]. - Horizon Robotics (09660) reported a revenue increase of 67.6% year-on-year, indicating strong growth in the autonomous driving market [8]. Group 4: ETF and Fund Flows - Northbound capital also sold off ETFs, with the Tracker Fund of Hong Kong (02800) and Hang Seng China Enterprises Index (02828) facing net sells of 118.86 billion HKD and 47.76 billion HKD, respectively [9]. - Despite the selling pressure, there is an expectation for continued foreign capital inflow into the Chinese market, although the importance of foreign capital in the Hong Kong market has decreased [9].