Northbound funds | Northbound trading recorded a net buying of 1.341 billion yuan, with significant differentiation in technology stocks. Xiaomi-W (01810) received additional holdings of over 3 billion yuan.

On December 5th, in the Hong Kong stock market, Beishui (Northbound) had a net purchase of 1.48 billion Hong Kong dollars, with the Shanghai Connect having a net sell of 0.394 billion Hong Kong dollars, and the Shenzhen Connect having a net purchase of 1.735 billion Hong Kong dollars. The top stocks bought by Beishui were XIAOMI-W (01810), MEITUAN-W (03690), and LEAPMOTOR (09863). The top stocks sold by Beishui were BABA-W (09988), TENCENT (00700), and ASMPT (00522). The Hong Kong-Shanghai Connect saw active trading stocks. The Hong Kong-Shenzhen Connect saw active trading stocks. XIAOMI-W (01810) had a net purchase of 3.013 billion Hong Kong dollars. Goldman Sachs released a research report stating that they expect more AI achievements to be announced in the coming quarters, which will be applied to Xiaomi's ecological circle and its globally largest AIoT connected devices, driving differential development and supporting Xiaomi's upgraded strategy for the "People, Cars, Homes" ecological circle. They gave Xiaomi a "buy" rating with a target price of 53.5 Hong Kong dollars. LEAPMOTOR (09863) had a net purchase of 0.392 billion Hong Kong dollars. Since March of this year, LEAPMOTOR has maintained a growth trend for 9 consecutive months, with deliveries reaching a new high of 70,327 vehicles in November, continuously refreshing the monthly sales record for new car manufacturers. "Zero Run has achieved its annual sales target of 500,000 vehicles 45 days ahead of schedule and aims to hit a sales target of 1 million vehicles by 2026." On the same day as announcing the delivery volume, LEAPMOTOR's chairman Zhu Jiangming also set higher goals for the company's development. BYD COMPANY (01211) had a net purchase of 0.339 billion Hong Kong dollars. In terms of news, BYD Company Limited sold 480,186 vehicles in November, reaching a new high for the year. From January to November 2025, BYD Company Limited sold 4.18 million vehicles, an increase of 11.3% year-on-year. In addition, BYD Company Limited's cumulative installation of new energy vehicle power batteries and energy storage batteries in November 2025 was approximately 27.669 GWh, with a total cumulative installation of approximately 258.282 GWh by 2025. Domestic insurance stocks performed well, with Ping An Insurance (02318) having a net purchase of 0.151 billion Hong Kong dollars and China Life Insurance (02628) having a net purchase of 0.122 billion Hong Kong dollars. Morgan Stanley released a research report stating that they have added Ping An Insurance to their watchlist, still listing it as a top pick. They raised the target price for Ping An Insurance H shares by 27% to 89 Hong Kong dollars and for A shares by 21% to 85 yuan. Morgan Stanley believes that they are now more optimistic about Ping An Insurance, believing that Ping An can seize key growth opportunities in residents' financial management, healthcare, and elderly care. At the same time, the main market concerns are gradually being resolved, paving the way for valuation improvement. It is worth noting that in order to improve the regulatory standards for insurance companies' solvency, fully leverage insurance funds as patient capital, enhance the quality and efficiency of serving the real economy, the China Banking and Insurance Regulatory Commission recently issued a notice on adjusting factors related to business risks of insurance companies. The notice actively implements the requirements of preventing risks, strengthening supervision, and promoting high-quality development, while properly adjusting factors related to business risks of insurance companies on the basis of strictly adhering to the risk bottom line. Domestic banking stocks were added to, with Industrial and Commercial Bank of China (01398) having a net purchase of 0.287 billion Hong Kong dollars and China Construction Bank Corporation (00939) having a net purchase of 0.184 billion Hong Kong dollars. In terms of news, Galaxy Securities previously pointed out in a research report that insurance funds continue to increase their holdings in the banking sector, with room for incremental layout in the future, and the investment value of banks continues to be highlighted. The release of the 15th Five-Year Plan will promote the transformation of the banking industry, the improvement in net profits of banks in the third quarter continues, and attention is focused on progress in reforms and opportunities for fundamental repairs. The mid-term dividend payout of banks remains undiminished, highlighting the dividend value. Combining the reshaping of the bank's valuation with multi-dimensional incremental funds accelerating, the bank sector continues to be optimistic about the value of allocation. Chip stocks faced sell-offs, with HUA HONG SEMI (01347) seeing a net sell of 56.9728 million Hong Kong dollars, Semiconductor Manufacturing International Corporation (00981) seeing a net sell of 1.19 billion Hong Kong dollars, and ASMPT (00522) seeing a net sell of 4.39 billion Hong Kong dollars. In terms of news, SMIC issued a stern statement yesterday, stating that the company has noted the misleading information about the company's products, customers, supplies, and production capacity forecast that has been circulating in the media and online today, all of which are misleading market information. Furthermore, there was significant differentiation in the technology sector, with BABA-W (09988) seeing a net sell of 1.776 billion Hong Kong dollars, TENCENT (00700) seeing a net sell of 1.445 billion Hong Kong dollars, while MEITUAN-W (03690) received a net buy of 0.607 billion Hong Kong dollars. CNOOC (00883) had a net purchase of 62.06191 million Hong Kong dollars.