Northbound funds | Northbound trading recorded a net purchase of RMB4.572 billion. Pingtouge confirms its independent listing in Hong Kong. Northbound funds increased their position in Alibaba (09988) by over HK$1.2 billion.

On November 11 in the Hong Kong stock market, northbound trading recorded a net purchase of HK$4.572 billion. Among this, Stock Connect (Shanghai) recorded a net purchase of HK$2.378 billion, and Stock Connect (Shenzhen) recorded a net purchase of HK$2.195 billion. The stocks with the largest net purchases by northbound funds were BABA-W (09988), Semiconductor Manufacturing International Corporation (00981), and TRACKER FUND OF HONG KONG (02800). The stocks with the largest net sales by northbound funds were Tencent (00700), KB LAMINATES (01888), and Hua Hong Grace Semiconductor (01347). Stock Connect (Shanghai) active trading stocks Stock Connect (Shenzhen) active trading stocks BABA-W (09988) received a net purchase of HK$1.203 billion. Alibaba's Pingtouge plans to seek an independent listing in Hong Kong. Morgan Stanley believes this spin-off is an important catalyst for unlocking valuation and gives a valuation range of US$28 billion to US$83 billion. Pingtouge's goal is to raise its computing power contribution from more than 10% to 40%-50%, with about 700,000 GPUs expected to ship in 2027. In addition, Alibaba officially announced that the new-generation Qwen large model Qwen4 will be released soon. Semiconductor Manufacturing International Corporation (00981) received a net purchase of HK$935 million, while Hua Hong Grace Semiconductor (01347) suffered a net sale of HK$304 million. Hua Hong Grace Semiconductor's third-quarter operating revenue was RMB6.706 billion, up 13.95% year on year; net profit attributable to shareholders was RMB835 million, up 136.14% year on year. The announcement showed that third-quarter depreciation and amortization were US$265.8 million, up about 31% year on year; the gross margin improvement was mainly due to higher average selling prices, but the announcement explicitly mentioned that this was "partially offset by higher depreciation costs." TRACKER FUND OF HONG KONG (02800) and Hang Seng H-Share Index ETF (02828) received net purchases of HK$926 million and HK$532 million, respectively. Soochow pointed out that last week the Hang Seng Index and Hang Seng Tech Index rebounded more than expected, due to short covering and some funds flowing back to avoid the US stock market decline. We remain cautiously observant on Hong Kong stocks; the "odds" are still acceptable, but the relative "probability of success" remains low, and a defensive approach should dominate. Z.AI (02513) and MINIMAX-W (00100) received net purchases of HK$471 million and HK$190 million, respectively. Anthropic shares are expected to begin trading on Nasdaq on November 20. Zheshang pointed out that the final pricing of Anthropic will provide Z.AI, MiniMax and other companies with the first publicly comparable overseas frontier model company pricing reference, bringing opportunities for valuation repair in the sector. Northbound funds once again increased their positions in optical communication concept stocks. Zhongji Innolight (03308), Cig Shanghai (06166), and YOFC (06869) received net purchases of HK$433 million, HK$27.28 million, and HK$8.4 million, respectively. According to reports, Microsoft is lobbying the Trump administration to abandon plans to restrict imports of new Chinese-model optical transceivers. Microsoft and other technology companies and industry organizations believe that once Chinese optical transceivers are restricted, it may cause a shortage of key components and further slow the construction of US AI data centers. In addition, KB LAMINATES (01888) and Tencent (00700) received net purchases of HK$368 million and HK$515 million, respectively.