Southbound Funds Net Bought HK$2.3 Billion, Adding Domestic GPU Stocks While Dumping Over HK$1.8 Billion in Alibaba
nashnova research
Northbound capital posted a net buy of HK$2.33 billion on Nov 13, with a sharp structural split: domestic GPU names drew concentrated inflows while Alibaba was dumped for HK$1.88 billion after a short-seller flagged chip-compliance concerns.
Where did northbound money go today?
Stock Connect (Shanghai) posted a net buy of HK$3.663 billion; Stock Connect (Shenzhen) posted a net sell of HK$1.330 billion — combined net buy HK$2.33 billion.
The buy side concentrated on two lines: Tencent (net buy HK$680 million, the day's largest single inflow) and domestic GPU concept stocks.
The sell side was equally concentrated: Alibaba alone accounted for a net sell of HK$1.879 billion, dominating total outflows.
This means → northbound capital is not retreating wholesale — it is rotating out of names carrying compliance risk and into names with harder domestic-substitution logic.
Why were domestic GPU stocks bought so aggressively?
Biren Technology (06082) drew a net buy of HK$294 million; Iluvatar CoreX (09903) drew HK$164 million.
One market thesis: Nvidia announced that Jensen Huang stepped down as president, CEO, and board member, creating uncertainty over its product-delivery cadence.
In plain terms = Nvidia's leadership change → delivery reliability in question → the "domestic GPU substitution" narrative becomes easier for capital to buy into.
Zhipu (02513) drew a net buy of HK$569 million; its chairman had earlier proposed an H-share buyback capped at HK$4 billion, and the buyback signal stacked with AI momentum to pull in further flows.
Why is there a split inside semiconductors and AI hardware?
Hua Hong Semiconductor (01347) drew a net buy of HK$81.9 million; SMIC (00981) was net sold for HK$184 million.
Guotou Securities noted that global wafer-fabrication capacity will enter a structural long-upcycle from 2026 to 2030, with SMIC and other domestic foundries continuing to build out capacity at mature process nodes — the non-cutting-edge but high-volume end of chip production.
This means → the long-term thesis is intact, but short-term capital chose the cheaper, higher-beta play in Hua Hong over SMIC, which had already rallied.
AI hardware showed the same split: Cambridge Technology (06166) drew a net buy of HK$134 million, but Yangtze Optical Fibre (06869, net sell HK$137 million) and Zhongji Innolight (03308, net sell HK$183 million) were sold. The concern: Huang's departure could disrupt suppliers deeply tied to Nvidia — optical modules, high-speed connectors, and server hardware.
Why was Alibaba dumped for nearly HK$1.9 billion?
New York short-seller Culper Research alleged that Singapore-based Megaspeed used Southeast Asian intermediaries to procure Nvidia's advanced chips in circumvention of US trade restrictions, and claimed Alibaba had allegedly provided Megaspeed with billions of dollars to fund those purchases.
UBS said short-term market sentiment toward Alibaba is negative but believes the impact is likely overstated.
In plain terms = the short report put a "compliance cloud" on the table, and northbound capital chose to exit first and reassess later — but major banks think the reaction is overdone.
Whether Alibaba can clear this chip-compliance overhang in the near term is the key variable for whether northbound capital comes back.
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