Knowledge Atlas surges 32.8% as southbound funds rotate from tech

Southbound funds poured HKD2.3 billion into Knowledge Atlas on Monday, sending the stock up 32.8% in a rotation from mega-cap tech names into Hong Kong-listed industrial and materials stocks.

"China's support for data center construction has led to a pullback in Alibaba shares, while management remains determined to gain more AI market share," CLSA analysts said.

Knowledge Atlas (02513.HK) drew HKD753.1 million via the Shanghai-Hong Kong Stock Connect and HKD1.5 billion via the Shenzhen-Hong Kong Stock Connect, making it the most active stock on both channels. KB Laminates (01888.HK) rose 22.3% with HKD1 billion in net inflows, while Kingboard Holdings (00148.HK) gained 12.7% with HKD535 million. Total southbound turnover reached HKD117.35 billion, with overall net flows balanced at zero as inflows into industrial names were offset by outflows from technology heavyweights.

The rotation signals growing conviction in Hong Kong-listed industrial and materials names as mainland investors shift from heavyweight tech positions. Alibaba Group (09988.HK) saw HKD853.4 million in net outflows, CNOOC (00883.HK) lost HKD651.9 million, and Tencent Holdings (00700.HK) recorded HKD487.3 million in net selling. Knowledge Atlas' heavy-volume surge — with short selling of HKD331.6 million representing just 4.1% of turnover — suggests institutional accumulation that could drive further sector-wide re-rating in the industrial and materials space.

This article is for informational purposes only and does not constitute investment advice.