On May 11, the Hong Kong stock market saw a net inflow of HK$71 million from northbound capital. Specifically, the Shanghai-Hong Kong Stock Connect recorded a net inflow of HK$3.525 billion, while the Shenzhen-Hong Kong Stock Connect recorded a net outflow of HK$3.454 billion. The stocks receiving the largest net purchases from northbound funds were BABA-W (09988), KUAISHOU-WR (01024), and SMIC (00981). The stocks with the largest net sales were Tencent (00700), Tracker Fund (02800), and Huahong Semiconductor (01347).
BABA-W (09988) attracted a net purchase of HK$1.074 billion. On May 11, Alibaba announced the full integration of its AI model Qianwen with Taobao. This marks the first deep integration between a global ultra-large-scale e-commerce platform and a top-tier large language model application. Alibaba has pioneered the full-chain AI shopping experience in the industry, achieving a complete closed-loop process from product recommendation to order placement, fulfillment, and after-sales service, representing a significant step in Alibaba's AI-driven e-commerce strategy.
KUAISHOU-WR (01024) received a net purchase of HK$988 million. Haitong International released a research report noting recent market discussions about the potential spin-off of Kling, which drove its stock price up by approximately 20% between May 5 and 8. The report suggests a high likelihood of a future spin-off. Under the assumption of a spin-off listing, Haitong International estimates Kuaishou's stock price could reach HK$84. The report also states that if the spin-off is implemented this year, Kuaishou Group's overall valuation could be HK$368.6 billion based on a comprehensive valuation.
Chip stocks continued to diverge. SMIC (00981) and Montage Technology (06809) received net purchases of HK$782 million and HK$86.47 million, respectively, while Huahong Semiconductor (01347) saw a net sale of HK$161 million. According to media reports, ByteDance has reportedly increased its 2026 AI infrastructure spending plan by 25% to approximately RMB 200 billion, up from the previous budget of around RMB 160 billion at the end of last year, with plans to allocate a larger proportion of funds to domestic AI chips. This has directly strengthened market expectations for a surge in demand within the domestic computing power industry chain.
Pop Mart (09992) attracted a net purchase of HK$173 million. On May 7, renowned investor Duan Yongping posted on social media that he had fully exchanged his shares in coal company China Shenhua for shares in trendy toy company Pop Mart. Notably, Duan has been actively commenting recently, frequently mentioning Pop Mart in investor communities. In April this year, Duan stated, "My Pop Mart insurance company is officially open for business," and indicated that unless his views change, he will continue to accumulate shares to reach his target position.
CNOOC (00883) received a net purchase of HK$43.54 million. Guosen Securities released a research report stating that at the end of April, the UAE suddenly announced its withdrawal from OPEC+ effective May 1 and plans to increase production, leading to oil prices remaining high and fluctuating. Given the ongoing blockade of the Strait of Hormuz, future crude oil supply will depend on the situation regarding passage through the strait. Affected by the US-Israel-Iran conflict, the average price of Brent and WTI crude oil in 2026 is expected to be between $85 and $90 per barrel, with the upstream oil and gas exploration sector likely to maintain high prosperity.
Tracker Fund (02800) saw a net sale of HK$648 million. Galaxy Securities believes that the narrative of Hong Kong stocks' value proposition will not disappear but will shift from comprehensive valuation repair to structural defense and left-side positioning. Hong Kong stocks are currently in a contradictory phase with a valuation floor but suppressed by external liquidity pressures. The market is experiencing short-term fluctuations and differentiation, but if external pressures ease in the medium term, the potential for valuation repair in Hong Kong stocks remains considerable.
Additionally, Cambridge Technology (06166) received a net purchase of HK$123 million, while Changfei Optical Fiber & Cable (06869) and Tencent (00700) saw net sales of HK$156 million and HK$892 million, respectively.
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