Northbound funds | Northbound transactions net bought 5.931 billion, stablecoin concept differentiation appears, domestic funds added positions in Semiconductor Manufacturing International Corporation (00981) with nearly 500 million Hong Kong dollars.

In the Hong Kong stock market on July 18, Beishui had a net purchase of 5.931 billion Hong Kong dollars, including a net purchase of 3.288 billion Hong Kong dollars through the Hong Kong Stock Connect (Shanghai) and a net purchase of 2.643 billion Hong Kong dollars through the Hong Kong Stock Connect (Shenzhen). The stocks that Beishui bought the most were Semiconductor Manufacturing International Corporation (00981), BABA-W (09988), and ZA ONLINE (06060). The stocks that Beishui sold the most were Tencent (00700), XIAOMI-W (01810), and GUOTAI JUNAN I (01788). Active trading stocks through the Hong Kong Stock Connect (Shanghai) Active trading stocks through the Hong Kong Stock Connect (Shenzhen) Semiconductor Manufacturing International Corporation (00981) received a net purchase of 492 million Hong Kong dollars. TSMC announced a second-quarter net profit of 398.3 billion Taiwan dollars, a year-on-year increase of 60.7%, exceeding market expectations and reaching a historical high, mainly due to the sharp increase in semiconductor demand in the field of artificial intelligence applications. CMSC pointed out that although Semiconductor Manufacturing International Corporation's guidance for Q2 was slightly lower than market expectations, the trend of domestic substitution and self-controlled development is full of certainty. After this adjustment cycle, odds will gradually improve and there is still a large space for valuation repair. Beishui increased its holdings in AI concept stocks, with BABA-W (09988) and KINGSOFT CLOUD (03896) receiving net purchases of 388 million and 235 million Hong Kong dollars, respectively. Nvidia has resumed sales to China with H20, and AMD has also announced the restart of exports of AI chips to China. Guosen pointed out that the resumption of supply of H20 solves the current shortage of domestic AI GPUs, significantly reducing the time and trial-and-error costs between hardware investment and actual use, accelerating the migration of domestic enterprises to the cloud, benefiting downstream demand growth for cloud vendors, and promoting the landing of large models and applications. There was a differentiation in the stablecoin concept, with ZA ONLINE (06060) receiving a net purchase of 236 million Hong Kong dollars, while GUOTAI JUNAN I (01788) suffered a net sale of 233 million Hong Kong dollars. The US House of Representatives passed the procedural vote on the "Guiding and establishing the American stablecoin national innovation Act," clearing obstacles for the issuance of stablecoins to establish a federal regulatory framework. In addition, after the "Stablecoin Ordinance" in Hong Kong takes effect on August 1, the Hong Kong Monetary Authority will start accepting applications for stablecoin licenses, with the first batch expected to be issued within the year, but it is worth noting that the expected number of the first batch of licenses will be controlled in single digits, with the market estimating 3-4. LI AUTO-W (02015) received a net purchase of 112 million Hong Kong dollars. Ideals Car announced the opening of reservations for Ideal i8, with an expected selling price of 350,000 to 400,000 RMB, to be officially announced on July 29 and deliveries starting in late August. Lyon said that i8 received over 20,000 orders in the first four hours of its debut, bringing surprise to the market. Changjiang also expressed optimism about the future sales space for Ideal pure electric vehicles. Tencent (00700) suffered a net sale of 379 million Hong Kong dollars. Tencent's major shareholder Prosus reduced its Tencent holdings by 371,000 shares on July 17, cashing in approximately 191.5 million Hong Kong dollars, reducing its stake to 22.99%. In addition, Nomura expects Tencent's second-quarter revenue to be 177 billion RMB, a year-on-year increase of 10%, slightly lower than market expectations; the second-quarter Non-IFRS operating profit is expected to increase by 12% to 65.6 billion RMB, lower than market expectations by 2.5%. In addition, MEITUAN-W (03690) received a net purchase of 202 million Hong Kong dollars again, while XIAOMI-W (01810) and China National Building (01341) suffered net sales of 299 million and 44.86 million Hong Kong dollars, respectively.