On August 26th in the Hong Kong stock market, southbound capital recorded a net buy of HK$453 million. Specifically, the Shanghai-Hong Kong Stock Connect saw a net sell of HK$1.125 billion, while the Shenzhen-Hong Kong Stock Connect registered a net buy of HK$1.577 billion.

The stocks attracting the highest net buying from southbound investors were Alibaba-W (09988), YOFC (06869), and SMIC (00981). Conversely, the most significant net selling was directed at Innovent Bio (01801), Tencent (00700), and Cambridge Industries (06166).

Alibaba-W (09988) received a net buy of HK$1.212 billion. On August 23rd, Alibaba announced a new share placement of HK$80 billion, with all proceeds earmarked for AI and related infrastructure investments. By August 25th, sources revealed that Alibaba founder Jack Ma had increased his stake in the company's Hong Kong-listed shares over consecutive days, investing over HK$600 million. Combined with recent purchases by Alibaba's management team, the total additional investment now exceeds HK$800 million.

YOFC (06869) secured a net buy of HK$1.034 billion. HSBC Research noted in a report that YOFC's second-quarter revenue fell short of expectations, but its gross margin and net profit both surpassed the bank's and market forecasts. Net profit for the period surged 12.8 times year-on-year to RMB 2.339 billion, approaching the upper end of the previously guided range of RMB 1.9 billion to RMB 2.5 billion, reflecting a faster-than-expected product mix upgrade.

SMIC (00981) and Hua Hong Semiconductor (01347) recorded net buys of HK$717 million and HK$22.26 million, respectively. SMIC's second-quarter wafer business achieved simultaneous growth in volume and price, with substantial sequential increases in revenue, net profit, and revenue across all segments. Gross margin continued to climb, and the company provided an optimistic outlook for continued growth in both revenue and gross margin in the third quarter. Hua Hong Semiconductor posted a record-high quarterly revenue in Q2, with capacity utilization reaching 102.8%, a state of full production that underscores robust downstream chip order demand.

Kingboard Laminates Holdings (01888) saw a net buy of HK$166 million. The company stated that entering the second half of 2026, the supply shortage of electronic glass fiber cloth has worsened, with copper clad laminates and upstream materials seeing sustained price surges. July 2026 profit reached approximately HK$1.1 billion, setting a new monthly record. Citi, citing July earnings slightly above expectations, raised its 2026-2028 earnings forecasts by 9%-10% and lifted the target price to HK$95.

CNOOC (00883) faced a net sell of HK$146 million. Easing concerns over Middle East geopolitical tensions led to a notable decline in international oil prices this week. Additionally, CNOOC released its post-market results, posting a first-half net profit of RMB 85.8 billion, up 23.4% year-on-year. The interim dividend was HK$0.94 per share, an increase of 28.8%. The company also reported first-half net production of 398.7 million barrels of oil equivalent, up 3.7% year-on-year.

Innovent Bio (01801) surged 9% following its earnings release, prompting some southbound funds to sell into the rally, resulting in a full-day net sell of HK$521 million. The company posted interim results showing IFRS net profit of RMB 1.3 billion for the first half of 2026, up 50.2% year-on-year, surpassing its full-year 2025 level. Over the past ten months, overseas BD partnerships have totaled US$34 billion, representing over 30% of the total out-licensing value by Chinese pharmaceutical companies during the same period.

Meanwhile, WuXi Biologics (02269) recorded a net buy of HK$537 million, while Tencent (00700) and Cambridge Industries (06166) experienced net sells of HK$337 million and HK$149 million, respectively.