Northbound funds | Northern Water achieved a net purchase of 10.373 billion yuan, domestic investors once again increased their holdings of technology stocks, and throughout the day they aggressively bought CSOP Hang Seng TECH Index ETF (03033) for nearly 1.3 billion Hong Kong dollars.

On November 5th in the Hong Kong stock market, the net purchase of Northbound funds was 10.373 billion Hong Kong dollars, with 3.359 billion Hong Kong dollars of net purchase through the Shanghai-Hong Kong Stock Connect and 7.014 billion Hong Kong dollars of net purchase through the Shenzhen-Hong Kong Stock Connect. The stocks with the highest net purchase by Northbound funds were CSOP Hang Seng TECH Index ETF (03033), BABA-W (09988), and XIAOMI-W (01810). The stocks with the highest net sell by Northbound funds were HUA HONG SEMI (01347), Semiconductor Manufacturing International Corporation (00981), and Ganfeng Lithium Group (01772). Active stocks with transactions through the Shanghai-Hong Kong Stock Connect Active stocks with transactions through the Shenzhen-Hong Kong Stock Connect CSOP Hang Seng TECH Index ETF (03033) received a net purchase of 1.287 billion Hong Kong dollars. According to China Securities Journal, CMSC's Chief Strategy Analyst Zhang Xia stated that compared to major global indices, the valuation of Hong Kong stocks, especially the Hang Seng TECH Index, is still at historically low levels and is one of the few indices with a current P/E ratio lower than its historical average, indicating a significant potential for valuation recovery. Northbound funds also increased positions in internet stocks, with BABA-W (09988), MEITUAN-W (03690), and Tencent (00700) receiving net purchases of 890 million, 184 million, and 58.5 million Hong Kong dollars, respectively. Daiwa released a research report, reiterating their positive view on the Chinese internet industry. They noted that Tencent continues to hold the most widely held shares and investors are mainly looking at capital expenditure budget adjustments as a key catalyst for future quarters, and are optimistic that game revenue growth will remain strong under the strong product pipeline. Daiwa also stated that Alibaba is still viewed as the top AI Agent stock in China, maintaining a positive outlook consistent with the market. XIAOMI-W (01810) received a net purchase of 650 million Hong Kong dollars. Lyon published a research report stating that with robust sales of electric vehicles, Xiaomi's total revenue and adjusted net profit in the third quarter are expected to increase by 22% and 60% respectively year-on-year, reaching 112.9 billion and 10 billion yuan. During the period, the number of electric vehicle deliveries further increased to 109,000 units with an average price of about 260,000 yuan, and may have already achieved a balanced income and expenditure. Lyon expects Xiaomi's total revenue and adjusted net profit in the fourth quarter to increase by 15% and 16% respectively year-on-year, primarily due to the recovery of smartphone sales growth and continued increase in electric vehicle deliveries. China Mobile Limited (00941) received a net purchase of 2.06 billion Hong Kong dollars. According to an announcement by China Mobile Limited, the company plans to transfer 0.19% of its shares to Petrochina Group. China Mobile Limited stated that this equity transfer is aimed at further strengthening strategic synergy between China Mobile Limited and Petrochina Group, promoting cooperation and development in areas such as information technology and smart energy, and unlocking the potential of digital integration. Northbound funds sold chip stocks, with Semiconductor Manufacturing International Corporation (00981) and HUA HONG SEMI (01347) receiving net sells of 499 million and 640 million Hong Kong dollars, respectively. Galaxy Futures previously pointed out that the domestic chip sector saw a decline following news of possible relaxation in export restrictions for NVIDIA. Tianfeng noted that in anticipation of the semiconductor peak season in the third quarter, it is recommended to focus on design sectors storage/foundry/SoC/ASIC/CIS performance elasticity, equipment materials components computing chip domestic substitutes. Leading foundries may initiate price hikes, with optimistic performance outlook for the 2-3rd quarter, and marginal changes in advanced processes continuing to catalyze growth. In addition, China National Offshore Oil Corporation (00883), TRANSTHERA-B (02617), and Ganfeng Lithium Group (01772) received net sells of 12.94 million, 75.84 million, and 104 million Hong Kong dollars, respectively.