Northbound funds | Northbound trading recorded a net buy of 4.074 billion. With Alibaba's Yunqi Conference imminent, northbound funds snapped up over HK$500 million worth of Alibaba (09988).

On September 21 in the Hong Kong stock market, northbound trading recorded a net buy of HK$4.074 billion. Among this, Hong Kong Stock Connect (Shanghai) recorded a net buy of HK$3.118 billion, and Hong Kong Stock Connect (Shenzhen) recorded a net buy of HK$956 million. The stocks with the largest net buys by northbound funds were YOFC (06869), BABA-W (09988), and Z.AI (02513). The stocks with the largest net sells by northbound funds were Tencent (00700), CHINAGOLDINTL (02099), and Semiconductor Manufacturing International Corporation (00981). Active stocks on Hong Kong Stock Connect (Shanghai) Active stocks on Hong Kong Stock Connect (Shenzhen) YOFC (06869) received a net buy of HK$581 million. Recently, Corning signed a 10-year long-term order with Verizon, coupled with a nearly 90% increase in the unit price in China Mobile Limited's centralized procurement, both further confirming that the supply-demand dynamics of the optical fiber industry are reversing. Galaxy Securities pointed out that the optical fiber industry is transitioning from a traditional telecommunications cyclical product to the computing power infrastructure track, with backbone network expansion and internal data center demand resonating, opening up long-cycle structural incremental space. BABA-W (09988) received a net buy of HK$553 million. Alibaba will hold its 2026 Yunqi Conference in Hangzhou from September 22 to 24. Citi expects that Alibaba will reiterate its full-stack capabilities at the Yunqi Conference, as well as its three-year RMB 380 billion capital expenditure and its target of US$100 billion in external cloud revenue by fiscal year 2031, and may provide the latest MaaS annual recurring revenue (ARR) as of the end of September, while maintaining its year-end ARR target of RMB 30 billion. It is believed that any positive surprise announced at the Yunqi Conference may trigger a positive reaction in the stock price. Z.AI (02513) and MINIMAX-W (00100) received net buys of HK$373 million and HK$34.18 million, respectively. The domestic large model industry is entering a new stage: the scaling and localization of computing power supply are allowing model companies to shift more energy from "scrambling for computing power" to "competing on efficiency"; inference speed, response experience, and unit cost are replacing pure parameter scale as the core yardstick for measuring the commercial competitiveness of models. Hua Hong Grace Semiconductor (01347) received a net buy of HK$207 million, while Semiconductor Manufacturing International Corporation (00981) suffered a net sell of HK$215 million. Foundries such as UMC, Powerchip, and Vanguard have seen capacity utilization rates surge to high levels, with supply falling short of demand. UMC has forecast that it will initiate price increases, and Powerchip is said to be planning a quote increase of as much as 40%. Both UMC and Powerchip confirmed that order intake has recently improved. UMC stated bluntly that if market supply-demand trends continue, the extent of wafer foundry price adjustments next year will be more pronounced than in the second half of this year. GENSCRIPT BIO (01548) received a net buy of HK$165 million. GenScript recently announced a collaboration with Eli Lilly's AIDD collaboration platform Lilly TuneLab. The company will provide wet lab services to enterprises participating in TuneLab, helping them rapidly generate experimental data, convert AI predictions into biological validation data, and accelerate candidate drug evaluation. EB SECURITIES pointed out that as large model manufacturers enter AI drug discovery, the company's business model has undergone profound changes. CHINAGOLDINTL (02099) suffered a net sell of HK$522 million. Federal Reserve official and Minneapolis Fed President Neel Kashkari said that inflation is too high in all areas of the U.S. economy, not just due to rising oil prices. In an interview, Kashkari said that even excluding highly volatile energy and food, inflation is still too high relative to the direction of the economy. Goldman Sachs currently expects the Fed to raise rates by another 25 basis points at its October policy meeting. In addition, Victory Giant Technology (02476), KB LAMINATES (01888), and Tencent (00700) suffered net sells of HK$75.34 million, HK$92.42 million, and HK$815 million, respectively.