Northbound Funds Bucked the Trend with Over HK$2 Billion Net Buying in Tencent
nashnova research
Southbound capital net-bought HK$3.449 billion on September 23. Tencent fell 2.35% yet attracted HK$2.035 billion in dip-buying, while Kingboard Laminates was net-sold HK$2.168 billion — the divergence between internet names and PCB plays is becoming the key flow signal to watch.
How much did Southbound buy, and where did the money come from?
Southbound flows via Stock Connect totalled a net HK$3.449 billion in purchases on the day.
Shanghai-linked channel net-bought HK$4.423 billion; Shenzhen-linked channel net-sold HK$975 million. This means → the buying force came almost entirely from the Shanghai leg; Shenzhen was actually pulling out.
In plain terms = under the same "Northbound money" label, Shanghai and Shenzhen moved in opposite directions on the same day.
Tencent fell — so why was it the top buy?
Tencent (00700) dropped 2.35%, yet Southbound funds net-bought HK$2.035 billion, the single largest individual-stock purchase of the day.
The bull case centres on consumer-facing AI Agents — software assistants that can execute tasks for users. Brokers argue Tencent holds a positioning advantage in this race.
This reflects the breadth of the WeChat ecosystem: social graph + content (official accounts, Channels) + mini-programs + WeChat Pay merchant network. This means → if AI Agents need a consumer distribution pipe, WeChat's is already built.
Tracker ETF and Xiaomi also drew inflows — what's the story?
Tracker Fund (02800) drew a net HK$600 million. Guoyuan International noted the market has largely priced in a single September rate hike, but uncertainty remains on pace and duration.
In plain terms = buying the Tracker looks more like a defensive "park money in the index while direction is unclear" move.
Xiaomi (01810) attracted a net HK$457 million. On September 22 Xiaomi released and open-sourced its MiMo-V2.6 model series. Goldman Sachs expects V2.6 to solidify Xiaomi's push into agentic coding and multimodal integration, with potential for higher API pricing.
Why was the Kingboard family sold so heavily?
PCB-concept stocks rallied against the market on the day, but Southbound funds sold into strength: Kingboard Laminates (01888) saw net selling of HK$2.168 billion, Kingboard Holdings (00148) was net-sold HK$336 million — the two heaviest individual-stock outflows of the session.
On the news side, Jiangxi Hongruixing raised copper-clad laminate ex-factory prices by 10%; China Jushi had already hiked electronic-cloth prices 15–20%. Electronic-grade glass cloth prices have risen over 100% year-to-date.
This means → the price-hike narrative has already run a long way; Southbound chose to take profits as the catalyst landed rather than chase further upside.
What other notable moves stood out?
Alibaba (09988) fell 4.36% and was net-sold HK$241 million by Southbound.
SMIC (00981) saw another HK$331 million in net selling.
Shenghong Tech (02476) drew a net HK$166 million even as the Kingboard duo was being dumped. This reflects a stock-level rotation within the PCB sector, not a blanket exit from the theme.
Internet vs PCB — what does this divergence tell us?
Southbound funds were simultaneously dip-buying Tencent and Xiaomi while selling Kingboard PCB names into strength — directionally opposite trades within the same session.
In plain terms = internet stocks were treated as "opportunity created by the dip"; PCB names were treated as "risk created by the rally."
This reflects Southbound's current core read: the long-term AI-application thesis (Tencent, Xiaomi) is not yet fully priced, while the short-term upstream-materials catalyst (copper-clad laminates, glass cloth) has already been absorbed into share prices.
市场有风险，内容仅供研究参考，不构成投资建议。