Northbound funds | Northbound trading net bought 6.591 billion. Xiaomi (01810) third-quarter performance exceeds expectations. Mainland investors increased their positions by nearly 2.4 billion Hong Kong dollars throughout the day.

On November 19, in the Hong Kong stock market, Northbound funds had a net buying of HK$6.591 billion. Among them, the Shanghai-Hong Kong Stock Connect had a net buying of HK$2.489 billion, while the Shenzhen-Hong Kong Stock Connect had a net buying of HK$4.101 billion. The stocks with the highest net buying by Northbound funds were XIAOMI-W(01810), BABA-W(09988), and CSOP Hang Seng TECH Index ETF(03033). The stocks with the highest net selling by Northbound funds were TRACKER FUND OF HONG KONG(02800), China Mobile Limited(00941), and Tencent(00700). In the Shanghai-Hong Kong Stock Connect, XIAOMI-W(01810) received a net buying of HK$2.394 billion. According to Goldman Sachs, Xiaomi's third-quarter performance slightly exceeded expectations with a 22% revenue growth year-on-year, higher than the bank's expectations by 2%, driven by higher revenue from the internet and electric vehicles. Adjusted net profit increased by 81% year-on-year due to the improvement in IoT gross margin and an increase in other income and investment income. BABA-W(09988) received a net buying of HK$2.096 billion. Alibaba's new AI application "Qian Wen APP" has quickly climbed to second place in the Apple App Store's free app chart just two days after its beta launch, second only to Douyin. China Securities Co.,Ltd believes that Qian Wen App is positioned as a versatile AI assistant that is expected to become a C-end traffic entrance for the AI era, integrating users' various needs, preferences, and business data in a one-stop content creation and lifestyle service scene. There was a divergence in Hong Kong stock ETFs, with CSOP Hang Seng TECH Index ETF(03033) receiving a net buying of HK$0.667 billion, while TRACKER FUND OF HONG KONG(02800) experienced a net selling of HK$1.484 billion. China Merchants Hong Kong stated that after consolidating in October, bearish expectations are gradually dissipating in the Hong Kong stock market. The institution believes that with improvements in supply-demand dynamics, the Chinese economic cycle is expected to reach a turning point. Capital expenditure and R&D investment in the technology industry will gradually corporate profits, becoming a new growth engine. With the Fed's interest rate cuts and the end of QT balance sheet reduction, the "double loosening" policies of China and the US are resonating, leading to continued inflow of Southbound funds and foreign capital. Improved fundamentals, upward revisions in profit expectations, and valuation adjustments are expected to drive Hong Kong stocks in the medium to long term, showing a slow bull trend. HUA HONG SEMI(01347) and Semiconductor Manufacturing International Corporation(00981) received a net buying of HK$0.361 billion and HK$0.101 billion, respectively. Semiconductor prices have continued to surge globally over the past two months. Semiconductor Manufacturing International Corporation reported a capacity utilization rate of 95.8% in the third quarter. The company took on a large number of urgent orders for analog, storage including NOR/NAND Flash, MCU, etc., and actively postponed some non-urgent phone orders to ensure delivery, leading to a short-term decrease in the proportion of mobile phone business. CNOOC(00883) received a net buying of HK$0.252 billion. According to Shenwan Hongyuan Group, Brent oil prices are expected to range from $55-70 per barrel by 2026. On the supply side, OPEC+ production increases are slowing down, while non-OPEC increments are significantly decreasing, with shale oil production expected to peak. On the demand side, global GDP growth rate is expected to be around 3.1% in 2026, with a slight slowdown in oil demand growth. Geopolitically, uncertainties have increased, and the risk of oil sanctions continues to ferment, although some expectations are already priced into the stock price. XPENG-W(09868) received a net buying of HK$0.145 billion. According to Daiwa, Xiaopeng aims to achieve breakeven in the fourth quarter of 2025. With strong growth in new car sales and technical services, the company's third-quarter revenue grew by 102% year-on-year to RMB 20.4 billion. The gross profit margin reached 20.1%, up 4.8 percentage points from the same period last year and 2.8 percentage points from the previous quarter, with a net profit of RMB 381 million. In addition, Ganfeng Lithium Group(01772) and YOFC(06869) received a net buying of HK$0.168 billion and HK$20.9 million, respectively. Meanwhile, China Mobile Limited(00941) and Tencent(00700) experienced a net selling of HK$0.131 billion and HK$0.103 billion, respectively.