Northbound funds | Northbound trading recorded a net inflow of 6.271 billion yuan, with diverging performance seen in innovative pharmaceutical stocks and semiconductor stocks facing reduction in holdings by Northbound investors.

On August 8th, in the Hong Kong stock market, the net purchase of Bei Shui was 6.271 billion Hong Kong dollars, of which the net purchase of Hong Kong Stock Connect (Shanghai) was 3.28 billion Hong Kong dollars, and Hong Kong Stock Connect (Shenzhen) was 2.992 billion Hong Kong dollars. The stocks with the most net purchases by Bei Shui were BABA-W (09988), TRACKER FUND OF HONG KONG (02800), and XIAOMI-W (01810). The stocks with the most net sales by Bei Shui were Semiconductor Manufacturing International Corporation (00981), HUA HONG SEMI (01347), and HUTCHMED (00013). Active trading stocks in Hong Kong Stock Connect (Shanghai) Active trading stocks in Hong Kong Stock Connect (Shenzhen) BABA-W (09988) received a net purchase of 730 million Hong Kong dollars. On the news front, on August 6th, Taobao officially launched a new VIP system, connecting resources from Alibaba's Ele.me, Fliggy, and Hema, including rights in shopping, food delivery, travel, and transportation, covering all aspects of life such as eating, drinking, playing, shopping, clothing, housing, and transportation. The benefits for 88VIP users will be upgraded. This marks a significant business move for Alibaba as it integrates Ele.me and Fliggy into its Chinese e-commerce business group, evolving towards becoming a major consumer platform. TRACKER FUND OF HONG KONG (02800) received a net purchase of 683 million Hong Kong dollars. On the news front, China International Capital Corporation Ltd. stated that the liquidity in the Hong Kong stock market has been consistently abundant, with trading volume increasing this year. It is expected that in the second half of the year, the strong demand for Hong Kong-listed stocks from mainland investors through the southbound trading will continue, mainly benefiting from the selection of high-quality technology/high-end manufacturing stocks, attractive valuations of Hong Kong stocks, and high dividend yields. The impact of the Hong Kong Monetary Authority selling US dollars for Hong Kong dollars on the Hong Kong stock market is relatively small, as these funds have a lower risk appetite and focus on high-interest rate deposits. Concept stocks in innovative drugs show differentiation, with ZAI LAB (09698), AKESO (09926), and INNOVENT BIO (01810) receiving net purchases of 216 million, 201 million, and 74.53 million Hong Kong dollars respectively, while CSPC PHARMA (01093) and HUTCHMED (00013) respectively suffered net sales of 158 million and 132 million Hong Kong dollars. On the news front, Morgan Stanley published a research report stating that the market is concerned about the negative impact of the upcoming US drug and semiconductor tariffs. Morgan Stanley believes that the likelihood of tariffs on licensing cooperation (BD) transactions is low; China Meheco Group has a low share of existing finished pharmaceutical sales in the US, so any tariffs may only have a limited impact. HUITONGDA NET (09878) received a net purchase of 75.83 million Hong Kong dollars. On the news front, HUITONGDA NET announced that on August 8th, the company signed a comprehensive cooperation agreement with Aliyun, exploring the innovative and application prospects in artificial intelligence and digital solution fields through resource integration and complementary advantages, deepening collaborative efforts in cloud computing, artificial intelligence, and digitalization in the lower-tier markets. XTALPI (02228) received a net purchase of 44.62 million Hong Kong dollars. On the news front, on August 5th, XTALPI announced that it had completed a pipeline cooperation agreement with DoveTree with a total order size of approximately 47 billion Hong Kong dollars (5.99 billion US dollars) and had received an initial payment as agreed in the contract of approximately 400 million Hong Kong dollars (51 million US dollars). This cooperation sets a new record in the field of new drug development in AI+Siasun Robot&Automation. According to the agreement, XTALPI and DoveTree have reached a cooperation on multiple preclinical large molecule and small molecule innovative drug assets and will conduct new drug development targeting a series of designated targets by DoveTree, with DoveTree having exclusive rights to the global development and commercialization of the related drugs. VOBILE GROUP (03738) received a net purchase of 31.48 million Hong Kong dollars. On the news front, on August 7th, the world's first RWA registration platform was officially launched. On the same day, three standards for Web3.0 were approved. It was announced in June this year that VOBILE GROUP had successfully completed market testing of the Vobile MAX digital content asset trading platform. The Vobile MAX platform now supports concurrent rights confirmation and transaction capabilities for a large number of physical assets (RWA) such as micro-short film content, unlocking the liquidity value of digital content assets. Bei Shui reduced holdings in chip stocks. Semiconductor Manufacturing International Corporation (00981) and HUA HONG SEMI (01347) suffered net sales of 426 million and 335 million Hong Kong dollars respectively. On the news front, Semiconductor Manufacturing International Corporation and Hua Hong Semiconductor both announced their second-quarter results, with both companies achieving double-digit year-on-year growth in sales revenue for the second quarter. Lyon published a research report stating that Semiconductor Manufacturing International Corporation guided third-quarter revenue to increase by 5 to 7% on a quarterly basis, with a median growth rate of 6%, revenue being 2.34 billion US dollars, slightly lower than market expectations. UBS stated that due to the rapid increase in depreciation and the limited room for price increases due to industry oversupply constraints, the bank maintains a cautious view on Hua Hong's gross profit margin and return on equity prospects. In addition, XIAOMI-W (01810), TENCENT (00700), EAST BUY (01797) received net purchases of 472 million, 104 million, and 55.57 million Hong Kong dollars respectively. NANJING PANDA (00553) suffered a net sale of 25.24 million Hong Kong dollars.