Chinese mainland investors increase AI stock holdings in Hong Kong for third consecutive month

Chinese mainland investors rotated into Hong Kong stocks tied to artificial intelligence and pulled out of companies in traditional industries in August, taking advantage of a market dip to boost bets on the world’s most cutting-edge technology.

AI model developer MiniMax Group logged net buying of HK$10.1 billion (US$1.29 billion) last month, the most among the Hong Kong-listed companies available for China’s onshore investors through the Stock Connect programme, according to data compiled by Wind Information. Alibaba Group Holding and Tencent Holdings, the Chinese hyperscalers that have ramped up AI adoption, ranked second and third, attracting buying of HK$7.86 billion and HK$6.72 billion, respectively.

Hua Hong Grace Semiconductor, China Construction Bank, China Life Insurance and Industrial and Commercial Bank of China (ICBC) were among those that bore the brunt of selling, the data showed.

The shift underscored the appeal of Chinese technology stocks trading in Hong Kong after the latest results from chipmaker Nvidia indicated that demand for AI infrastructure remained robust in spite of rising funding costs. The Hang Seng Tech Index dropped 4.3 per cent last month, offering a dip-buying opportunity to mainland traders, who currently account for about 30 per cent of stock transactions in the city.

Yangtze Optical Fibre and Cable Joint Stock, MiniMax’s rival Z.ai, Semiconductor Manufacturing International Corp and Xiaomi were also among mainland investors’ most favoured stocks, luring inflows ranging from HK$1.6 billion to HK$3.2 billion, according to the Wind data.

Meanwhile, Hua Hong led the list of most-sold stocks, as China’s onshore traders let go of HK$3 billion worth of shares last month. Meituan, the biggest on-demand delivery firm in China, came second with net selling of HK$2 billion amid stiff competition in the food delivery segment.