Northbound funds | Northbound trading recorded a net sell of RMB3.56 billion; northbound funds once again sold off tech stocks, reducing holdings in Alibaba (09988) by approximately HK$650 million throughout the day.

On October 30 in the Hong Kong stock market, northbound trading recorded a net sell of HK$3.56 billion. Among this, Hong Kong Stock Connect (Shanghai) recorded a net sell of HK$2.261 billion, and Hong Kong Stock Connect (Shenzhen) recorded a net sell of HK$1.298 billion. The stocks with the largest net purchases by northbound funds were Genscript Biotech (01548), KB Laminates (01888), and Z.AI (02513). The stocks with the largest net sales by northbound funds were Semiconductor Manufacturing International Corporation (00981), BABA-W (09988), and YOFC (06869). Active stocks under Hong Kong Stock Connect (Shanghai) Active stocks under Hong Kong Stock Connect (Shenzhen) Genscript Biotech (01548) received a net purchase of HK$132 million. Recently, Genscript and Thermo Fisher signed a strategic cooperation memorandum. The two parties will combine Genscript's R&D capabilities in gene synthesis, antibody discovery, protein engineering, and synthetic biology with Thermo Fisher's products and technologies in laboratory solutions, life science reagents, gene and protein analysis, mass spectrometry, and other areas to jointly promote the construction of the AIDD platform. KB Laminates (01888) received a net purchase of HK$97.33 million. CMSC previously stated in a research report that this round of CCL price increases has been running for 4-5 quarters, and PCB cost pass-through has been fully established. Based on industry chain research, the institution expects the monthly CCL price increase pace to continue conservatively until June 2027, followed by consolidation at high levels, with an optimistic expectation of continuing until the end of 2027. Z.AI (02513) received a net purchase of HK$12.29 million. A CLSA research report pointed out that Anthropic's S-1 filing validates the economics of frontier models, showing a diversified customer base, gross margin of 85%, and positive free cash flow, with revenue growing faster than computing costs; the main risk remains whether the revenue growth curve can match massive computing commitments. The bank noted that for Chinese large models, computing constraints increase the value of architecture and inference innovation, while Anthropic's listing may establish a valuation anchor. Zhongji Innolight (03308) and YOFC (06869) suffered net sales of HK$34.79 million and HK$250 million, respectively. Zhongji Innolight and Eoptolink Technology Inc. simultaneously held online investor exchange meetings and each received concentrated research from hundreds of institutions. The research topics of the two companies were highly overlapping, with institutions generally focusing on third-quarter profit performance, NPO product progress, overseas factory deliveries, upstream chip supply, gross margin fluctuations, inventory scale, overseas trade regulation, and the short-term disruption to overseas capacity deliveries caused by the Thailand floods. Tencent (00700) and BABA-W (09988) suffered net sales of HK$206 million and HK$649 million, respectively. Liu Gang of CICC pointed out that the recent rapid pullback in Hong Kong stocks, especially the Hang Seng Tech Index, has brought Hang Seng Tech basically back to the starting point of the "924" market rally two years ago in 2024. Weak household credit cycles and insufficient fiscal support for households are the fundamental reasons for the continued pressure on Hong Kong stocks; recent overseas interest rates, volatility in AI trading, and negative feedback in funding conditions have further amplified the adjustment. In addition, Industrial and Commercial Bank of China (01398) received a net purchase of HK$5.03 million, while CNOOC (00883) and Semiconductor Manufacturing International Corporation (00981) suffered net sales of HK$114 million and HK$998 million, respectively.