Northbound funds | Northbound net selling reached RMB3.277 billion; northbound funds rushed to buy SMIC and Hua Hong, while selling nearly HK$6 billion of TRACKER FUND OF HONG KONG (02800).

On November 4 in the Hong Kong stock market, northbound funds recorded a net sell of HK$3.277 billion. Among this, Stock Connect (Shanghai) recorded a net sell of HK$3.163 billion, and Stock Connect (Shenzhen) recorded a net sell of HK$115 million. The stocks with the largest net purchases by northbound funds were Semiconductor Manufacturing International Corporation (00981), Zhongji Innolight (03308), and Hua Hong Grace Semiconductor (01347). The stocks with the largest net sales by northbound funds were TRACKER FUND OF HONG KONG (02800) and KB LAMINATES (01888). Active stocks under Stock Connect (Shanghai) Active stocks under Stock Connect (Shenzhen) Semiconductor Manufacturing International Corporation (00981) and Hua Hong Grace Semiconductor (01347) received net purchases of HK$1.184 billion and HK$543 million, respectively. According to reports, Samsung Electronics is planning to fully exit the 8-inch wafer foundry business by the end of 2030. Samsung Electronics had previously only said it would gradually reduce its 8-inch chip production lines; this is the first time it has clearly given an end date. Zhongji Innolight (03308) received a net purchase of HK$557 million. Recently, a screenshot of a research report labeled as issued by Nomura and claiming to cut Zhongji Innolight's A-share target price to RMB330 was circulating rapidly in investment communities. Jiemian News sought verification from Nomura on the matter, and a relevant Nomura representative replied exclusively, saying, "The matter is untrue." In other words, Nomura never published this research report cutting the target price, and the circulated content is false information. BABA-W (09988) received a net purchase of HK$430 million. Alibaba has reached a cooperation with Apple to integrate Qwen into Apple Intelligence, allowing Chinese users to directly use Qwen's text and image understanding, content generation, and other capabilities in Siri, Writing Tools, and Visual Intelligence. These features will open for testing with the latest iOS developer Beta starting November 4 and will be launched for Chinese users with the official release of iOS 27.3 in December. YOFC (06869) received a net purchase of HK$425 million. Nomura stated that YOFC's steady growth mainly benefited from strong AIDC demand and significant optical fiber price increases driven by supply shortages, as well as improved product mix, and it expects the company to continue benefiting from strong AIDC demand in the second half of 2026 and in 2027. Z.AI (02513) received a net purchase of HK$48.59 million. J.P. Morgan released a research report saying that demand for Chinese AI models is currently between the two demand steps of programming and broader white-collar work. AI demand outside programming has appeared later than the bank originally expected, but the bank believes the market is overly pessimistic, remains bullish on the sector, and names Z.AI as its top pick. TRACKER FUND OF HONG KONG (02800) suffered a net sell of HK$5.979 billion. Soochow believes that the relative returns of Hong Kong stocks may moderate compared with July. First, even if there is short-term short covering, the current liquidity environment is not as good as in July; second, market funds are waiting for a rebound signal in tech hardware, and Hong Kong stocks are not in the rotation rhythm between high and low positions and are more focused on resonance effects, but their tech hardware content is low, so the rebound space is relatively limited. In addition, Tencent (00700) received a net purchase of HK$109 million, while KB LAMINATES (01888) suffered a net sell of HK$185 million.