On August 15, northbound capital through Stock Connect recorded a net inflow of HK$35.876 billion into Hong Kong stocks, setting a new record high for single-day net buying. The Shanghai-Hong Kong Stock Connect contributed HK$19.712 billion in net purchases, while the Shenzhen-Hong Kong Stock Connect added HK$16.165 billion in net inflows.

The top three stocks by net buying were Tracker Fund of Hong Kong (02800), Hang Seng China Enterprises Index ETF (02828), and HSTECH (03033).

**Active Trading in Stock Connect**

Northbound funds aggressively accumulated Hong Kong-listed ETFs, with Tracker Fund of Hong Kong (02800), Hang Seng China Enterprises Index ETF (02828), and HSTECH (03033) receiving net inflows of HK$12.788 billion, HK$5.356 billion, and HK$2.176 billion respectively.

On the research front, Industrial Securities released a report maintaining a strong bullish stance on Hong Kong stocks for the long term. The firm noted that global investors, particularly Chinese investors, are increasingly adopting a bull market mindset toward Chinese equities. Industrial Securities maintains its view that the current Hong Kong stock rally will develop into a super long bull market. For the medium term, the firm expects Hong Kong stocks to continue their upward trajectory with periodic fluctuations, consistently reaching new highs in the second half of the year. Federal Reserve rate cuts appear to be a matter of timing, with focus on how Fed easing and a weaker dollar could provide additional liquidity stimulus to Hong Kong stocks.

**Technology Stocks Gain Favor**

Technology stocks also attracted significant investment, with BABA-W (09988), Tencent (00700), and Meituan-W (03690) receiving net inflows of HK$1.454 billion, HK$1.406 billion, and HK$1.246 billion respectively.

Caitong Securities pointed out that core Hang Seng Tech Index constituents are expected to maintain steady revenue growth alongside broader consumer markets. On the profit side, near-term earnings may face pressure from intensified competition in the food delivery sector, potentially impacting internet platforms' operating profits (already anticipated by the market). The gaming sector is expected to outperform expectations, supported by strong first-half gaming data performance. The firm believes current market earnings expectations for core internet stocks are fairly comprehensive, with interim results focus shifting toward guidance for the next fiscal year. Looking ahead three years, the fundamentals resilience and sustainability of core holdings are expected to continue improving.

**Semiconductor Sector Attracts Investment**

SMIC (00981) and Hua Hong Semiconductor (01347) received net inflows of HK$392 million and HK$28.43 million respectively.

Cathay Haitong Securities noted that with industrial and automotive downstream sectors beginning inventory restocking, BCD Analog downstream demand is expected to grow, with foundry capacity utilization rates likely to continue improving in the second quarter and second half. Additionally, domestic advanced process technologies continue to iterate, with AI chips expected to gradually shift toward domestic foundries. SMIC and Hua Hong Semiconductor, as core assets positioned in advanced processes, are poised to benefit from broad domestic substitution opportunities in the AI era.

**Individual Stock Highlights**

XtalPi (02228) received net buying of HK$134 million. The company issued a profit alert, expecting first-half comprehensive income of at least RMB 500 million, representing a year-on-year increase of at least 387%. The company expects to turn profitable with net profit of at least RMB 50 million, marking the group's first semi-annual profitability. The improved financial performance is primarily attributed to collaboration with DoveTree, where the group provides drug discovery solutions and services based on its end-to-end AI drug discovery platform and comprehensive "AI+robotics" technology, driving significant revenue growth.

LK Technology (00558) attracted net buying of HK$108 million. The company recently signed a strategic cooperation agreement with four companies specializing in magnesium alloy and humanoid robot development, officially launching a joint magnesium alloy humanoid robot R&D project. The project focuses on integrated "material-structure-process" innovation, aiming to break through traditional robot weight and strength bottlenecks while achieving dual breakthroughs in structural lightweighting and manufacturing efficiency. LK Technology will leverage its leading magnesium alloy forming technology to provide advanced forming equipment and process solutions, facilitating lightweight breakthroughs in robot structures. Soochow Securities noted that the adoption rate of magnesium alloys in humanoid robots will likely exceed that in automotive applications.

Additionally, Xiaomi Group-W (01810) and East Buy (01797) received net inflows of HK$256 million and HK$790,000 respectively.