Southbound Net Buying Reaches HK$9.8 Billion; Zhipu Attracts Nearly HK$10 Billion in Two Days
Claire Weston
Southbound Connect channels net-bought HK$9.83 billion on July 9. Zhipu (02513) alone drew nearly HK$10 billion in two days, while capital also piled into semiconductors and AI — a clear signal that mainland money is concentrating on China's core tech assets.
Why did Zhipu attract nearly HK$10 billion in just two days?
Zhipu (02513) drew another HK$5.574 billion in net southbound buying on the day, pushing its two-day total close to HK$10 billion.
The company announced the same day it had completed a placement of roughly HK$31.41 billion, earmarked for foundation-model R&D, compute infrastructure, and global expansion.
This means → Southbound funds loaded up on the very day the placement landed. The market is betting that this capital will sharpen Zhipu's competitive edge, not merely dilute shareholders.
What made Alibaba Cloud beat expectations?
Alibaba-W (09988) saw net buying of HK$2.205 billion.
In institutional briefings, Alibaba guided FY2027 Q1 cloud revenue growth at roughly 45% year-on-year — well above the Street's 40% consensus. EBITA margin rose to the low double digits, in line with prior guidance.
In plain terms = Alibaba Cloud delivered faster growth *and* began turning a profit at the same time — a rare combination among cloud providers, and the reason capital stepped in.
What logic is pulling money into semiconductors?
Hua Hong Semiconductor (01347) and SMIC (00981) received net inflows of HK$1.211 billion and HK$1.055 billion, respectively.
Research firm Omdia now projects China's semiconductor market will reach US$812.08 billion in 2026, up roughly 92.9% year-on-year — a significant upward revision.
TSMC plans to raise 3 nm process pricing again in H2, by as much as 15%, with a further 5–10% hike possible next year.
This means → An upgraded demand outlook plus rising foundry prices create a volume-and-price tailwind, pushing capital toward China's leading contract chipmakers.
Xiaomi's new car and Kingboard's pricing power — what is the market betting on?
Xiaomi (01810) attracted net buying of HK$508 million. Lei Jun unveiled "SkyNomad," an intelligent SUV expected to be priced at RMB 200,000–450,000, with a formal launch targeted for mid-August.
Kingboard Holdings (00148) and Kingboard Laminates (01888) drew net inflows of HK$306 million and HK$116 million. Citi flagged that electronic-fabric ASPs may exceed forecasts and said it prefers subsidiary Kingboard Laminates over the parent.
GigaDevice (03986) saw net buying of HK$204 million. It guided H1 net profit at roughly RMB 6.9 billion, up 1,099% year-on-year, driven by both higher volumes and rising prices in memory chips.
Who got sold — and what is the market worried about?
Tracker Fund (02800) saw net selling of HK$2.313 billion; Tencent (00700) was net-sold HK$1.434 billion.
This reflects a rotation out of broad-based ETFs and mega-cap blue chips into higher-beta plays such as AI and semiconductors.
Guotai Junan International noted that Hong Kong equities are entering a concentrated micro-liquidity shock window this week; once the short-term impact is absorbed, the market should re-anchor to fundamental valuations.
In plain terms = Selling the Tracker Fund and Tencent is not necessarily a bearish call on the broad market — it is more likely freeing up capital to chase hot names like Zhipu and the semis.
Content is for reference only, not financial advice.