SMIC Net Selling Drives Southbound Funds' 2.188 Billion Yuan Outflow in Latest Trading Session

Southbound funds experienced notable capital departure during today’s trading, with net outflows reaching 2.188 billion yuan according to Jin10 data. The semiconductor sector bore significant selling pressure, as SMIC net sales hit 585 million Hong Kong dollars—the most substantial outflow from the Shenzhen connect route. This data reflects shifting investor sentiment in the technology and manufacturing space.

Semiconductor and Tech Giants Face Mixed Fortunes

In the Shanghai-Hong Kong Stock Connect, major tech heavyweights showed divergent trends. Xiaomi Group-W and Alibaba-W experienced notable capital outflows, posting net sell-offs of 1.041 billion and 194 million Hong Kong dollars respectively. The weakness in these names signals cautious positioning among southbound investors in the consumer technology space. Beyond Shanghai, the Shenzhen connect also recorded stress in chipmaking stocks, with SMIC net selling of 585 million Hong Kong dollars and BYD Company Limited showing outflows of 520 million Hong Kong dollars.

Tencent’s Buying Strength Provides Market Cushion

Contrasting the broader selling tone, Tencent Holdings emerged as a strong counterforce, leading net buying across both trading channels. In Shanghai, Tencent attracted 1.018 billion Hong Kong dollars in fresh capital, while its Shenzhen listings saw even stronger demand at 1.244 billion Hong Kong dollars. The dual strength in Tencent positions suggests selective buying interest in established tech champions despite overall southbound fund retreat. This buying momentum in blue-chip names offers a partial buffer to today’s SMIC net selling and broader sector weakness, indicating a flight to quality among fund managers.