On June 4th, the Hong Kong stock market saw a net outflow of HK$315 million from Mainland capital through the Stock Connect schemes. Specifically, the Shanghai-Hong Kong Stock Connect recorded a net inflow of HK$3.933 billion, while the Shenzhen-Hong Kong Stock Connect recorded a net outflow of HK$4.248 billion.
HUA HONG SEMI (01347), POP MART (09992), and CNOOC (00883) were among the stocks that received the largest net purchases from Mainland investors. Conversely, TENCENT (00700) and BABA-W (09988) faced the largest net sell-offs.
Mainland Capital Continues to Favor Chip Stocks
Semiconductor companies remained a key target for Mainland investment. HUA HONG SEMI (01347) and SMIC (00981) received net inflows of HK$708 million and HK$184 million, respectively. Industry reports indicate that TSMC plans another round of price increases for its 3-nanometer process in the second half of the year, with hikes of up to 15%, and further potential increases of 5-10% next year. The second-largest foundry, UMC, has also announced plans to raise prices in phases, a trend that may continue through 2027. According to TrendForce research, the average capacity utilization rate for the global top ten foundries' 8-inch capacity is expected to recover to nearly 90% by 2026.
POP MART (09992) attracted a significant net purchase of HK$552 million. A recent Hong Kong exchange filing shows that investor Duan Yongping increased his stake in the company to 81.0316 million shares as of May 28th, raising his shareholding ratio from 5.69% to 6.04%. This further solidifies his position as the company's second-largest shareholder.
CNOOC (00883) saw a net inflow of HK$247 million. The ongoing closure of the Strait of Hormuz continues to constrain global oil supply. Data from the U.S. government released on Wednesday showed that total U.S. inventories of crude oil and petroleum products fell by 10.6 million barrels last week to 1.57 billion barrels, the lowest level since 2004. Analysts warn that unless the Strait reopens to oil tankers, prices could potentially reach $200 per barrel this summer.
GIGADEVICE (03986) received a net purchase of HK$206 million. Market research firm Counterpoint released a report on the NAND storage market, indicating that driven by AI demand, the market surged to a record $46 billion in the first quarter of 2026. The data shows global NAND flash storage revenue reached $46 billion in Q1 2026, a 90% increase from Q4 2025 and a staggering 246% year-on-year increase, surpassing the total for the entire year of 2023.
YOFC (06869) was bought to the tune of HK$195 million net. The company noted in an announcement that recent market focus has been on price fluctuations for fiber optic cable products and data center-related demand. Currently, with the ongoing acceleration of data center construction both domestically and internationally, the supply-demand dynamics in the fiber optic cable market are improving. However, the extent of price volatility for some products remains uncertain, and its impact on the company requires comprehensive assessment.
Technology Stocks Face Selling Pressure
Mainland capital moved to sell technology shares. BABA-W (09988) and TENCENT (00700) saw net outflows of HK$437 million and HK$521 million, respectively. Sources indicate that the launch timeline for Tencent's WeChat AI agent remains uncertain, largely dependent on regulatory approval processes. Given WeChat's 1.4 billion user base, compliance procedures are likely to be more stringent than for other products. Analysts have previously noted that AI commercialization has entered a validation phase, with the competitive focus shifting from technology and computing power expansion to capital-intensive competition centered on capital expenditure efficiency.
In other activity, XIAOMI-W (01810) and 51WORLD (06651) received net purchases of HK$165 million and HK$66.35 million, respectively.
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