On June 11th, the Hong Kong stock market saw a net outflow of HK$2.754 billion from mainland investor funds via the Stock Connect schemes.

The net outflow through the Shanghai-Hong Kong Stock Connect was HK$420 million, while the net outflow via the Shenzhen-Hong Kong Stock Connect was HK$2.335 billion.

The stocks receiving the largest net purchases from mainland funds were Kingboard Holdings Ltd (00148), KB Laminates Holdings Ltd (01888), and Tencent Holdings Ltd (00700).

The stocks facing the largest net sales were Alibaba Group Holding Ltd (09988), CNOOC Ltd (00883), and Yangtze Optical Fibre and Cable Joint Stock Ltd (06869).

Key Purchases in Focus

Kingboard Holdings Ltd (00148) and KB Laminates Holdings Ltd (01888) received net inflows of HK$1.061 billion and HK$569 million, respectively, from mainland funds today.

Cumulative net purchases for these two stocks have approached HK$6 billion for the week.

Analysts at Citigroup noted they expect KB Laminates Holdings Ltd to issue a strong positive profit alert for the first half of 2026 around mid-July.

The bank forecasts the company's first-half net profit will surge 273% year-on-year to HK$3.48 billion, with revenue growing 74% to HK$16.6 billion.

This projected first-half profit would surpass the full-year 2025 net profit of HK$2.49 billion, with the net profit margin also expected to more than double from 9.7% in the first half of 2025 to 20.9%.

Tencent Holdings Ltd (00700) saw a net inflow of HK$536 million.

Analysts at Goldman Sachs highlighted Tencent's recent preliminary progress in its AI strategy, including a significant year-on-year increase in AI capital expenditure.

The firm's Hunyuan Hy3 model leads in token usage rankings on third-party API channels, and its enterprise AI business, such as the Workbuddy agent, is developing well.

Goldman Sachs expects Tencent Cloud growth to accelerate, advertising revenue to maintain high-single-digit to 20% growth, and the WeChat AI agent to potentially launch pilot programs in the second half of the year.

Semiconductor firms Hua Hong Semiconductor Ltd (01347) and Semiconductor Manufacturing International Corporation (00981) received net inflows of HK$127 million and HK$99.94 million, respectively.

On June 9th, TSMC's Chief Financial Officer, Wendell Huang, stated in a media interview that inflation has indeed increased the company's operating costs, and future price adjustments are not ruled out, though he explicitly denied the possibility of a "four or five-fold" surge.

On the same day at the annual shareholders' meeting, TSMC's Chairman and CEO, C.C. Wei, told shareholders the company "hopes" to raise prices like its competitors.

Notable Sales Activity

CNOOC Ltd (00883) faced a net outflow of HK$1.458 billion.

Data compiled by energy analyst John Kemp shows that short positions in Brent crude oil expanded by 200% from late March to early June.

As of June 2nd, short positions had reached their highest level since January this year.

The trend of long positions being reduced and shorts increasing over eight weeks reflects a prevailing market view that the Middle East situation will soon turn, and the crude supply gap will be quickly filled.

However, inventories are falling sharply, and a crisis in the spot market is gradually emerging.

Alibaba Group Holding Ltd (09988) experienced a net outflow of HK$2.182 billion.

On June 11th, Alibaba announced a management adjustment for its DingTalk unit: Chen Hang stepped down as CEO of DingTalk, with Chen Yusen taking over.

Additionally, a Goldman Sachs research report noted that Alibaba's share price has fallen 22% year-to-date, primarily due to profit forecast downgrades driven by increased investment in consumer AI.

The report suggests Alibaba's earnings-per-share downgrade cycle may be bottoming out, with profit performance expected to improve in the second half of the year, which should provide support for the stock price.

In other trading activity, Shandong Molong Petroleum Machinery Co Ltd (00568) received a net inflow of HK$16.9 million, while Yangtze Optical Fibre and Cable Joint Stock Ltd (06869) saw a net outflow of HK$378 million.