Story
SMIC, Innovent Biologics See Major Outflows From Mainland Investors Via Stock Connect
Summary
Mainland Chinese investors sold off shares in semiconductor giant SMIC and Innovent Biologics over the past week, while pouring fresh capital into Willas-Array Electronics and insurer AIA Group, according to data from the Southbound Stock Connect.
Mainland Chinese investors have significantly reduced their positions in major technology and biotech firms over the last five trading days, with Semiconductor Manufacturing International Corp. (SMIC) and Innovent Biologics seeing the largest net outflows. At the same time, fresh capital flowed into electronics component distributor Willas-Array and insurance heavyweight AIA Group, signaling a potential shift in sentiment.
Key Capital Movements
Data disclosed on September 17, which reflects T+2 settlement, shows a clear divergence in mainland investor interest across different sectors. The technology and biotech sectors faced notable selling pressure.
- Top Net Outflows (5-day):
- SMIC (00981): -¥1.72 billion
- Innovent Biologics (01801): -¥1.16 billion
- Hua Hong Semiconductor (01347): -¥1.08 billion
- Top Net Inflows (5-day):
- Willas-Array Electronics (01196): +¥5.62 billion
- CSOP Hang Seng TECH Index ETF (03033): +¥1.86 billion
- AIA Group (01299): +¥1.64 billion
The outflows from SMIC and Hua Hong suggest that mainland investors may be taking profits or growing cautious on the semiconductor sector. Conversely, the substantial inflow into Willas-Array indicates strong targeted buying, while investment in the Hang Seng Tech ETF and AIA suggests broader bets on a tech rebound and a move towards blue-chip stability, respectively.
Highest Mainland Ownership
AdDespite daily fund flow changes, mainland investors maintain highly concentrated ownership in several Hong Kong-listed companies through the Stock Connect program. The top three firms by Southbound shareholding percentage are primarily in the environmental and utilities sectors.
As of the latest data, the companies with the highest proportion of shares held by mainland investors include:
- Green Dynamic Environmental (01330): 71.84%
- Jiangsu Lopal Tech (02465): 71.44%
- Shanghai Dazhong Public Utilities (01635): 71.39%
These high ownership levels underscore the long-term strategic interest mainland capital has in specific industries listed in Hong Kong. The data is based on Hong Kong Stock Exchange filings compiled by Zhitong Finance.
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