BlockBeats News, July 29th. The current AI hardware bull market experienced a "sharp brake" amid enthusiastic voices. In the past month, leading sectors such as storage, chips, and semiconductor equipment collectively retreated. The market expressed concerns about the ROI of AI capital expenditures, overvaluation, and competition in the Chinese supply chain. Funds began to flow towards Hong Kong-listed platform leaders and undervalued "old economy stocks." In terms of performance in the past month, key AI stocks experienced significant declines:

· SK Hynix in South Korea (34-day decrease of 53%)

· Micron Technology in the US (decreased by approximately 47%)

· Intel in the US (decreased by approximately 34%)

· Samsung Electronics in South Korea (decreased by approximately 32%)

· Micron Technology in the US (decreased by approximately 28%)

Simultaneously, some "old economy stocks" in the Hong Kong market continued to strengthen. Funds flowed back into assets of established platforms such as Tencent, Meituan, Xiaomi, Alibaba, and JD.com. Among them:

· Xiaomi Corporation (increased by approximately 46%)

· Meituan (increased by approximately 36%)

· JD.com (increased by approximately 28%)

· Alibaba Group (increased by approximately 22%)

· Tencent Holdings (increased by approximately 11%)

According to data from the Korea Exchange, as of mid-July, foreign investors had a net sell-off of 12.1 trillion Korean won on the KOSPI main board and 338.1 billion Korean won on the KOSDAQ in that month. In contrast, southbound funds in the Hong Kong market continued to return. Morgan Stanley's statistics show that from July 16th to 22nd, southbound funds had a net inflow of $1.6 billion into the Hong Kong stock market. Since July, a cumulative net inflow of $11.1 billion has been recorded, with a total net inflow of $46.6 billion so far this year. After the crowded trades in the AI hardware chain receded, funds are exiting high-beta assets in South Korean semiconductor stocks and moving towards internet leaders, dividend assets, and undervalued core stocks in the Hong Kong market.

Market observers believe that as AI trading enters a phase of deleveraging and revaluation, funds prefer assets with clear profit paths and valuation potential. In the short term, internet leaders, dividend assets, and traditional core stocks in the Hong Kong market are attracting some of the risk preference inflows.