Northbound funds | Northbound trading net buying of 5.479 billion, mainland investors aggressively increased investment in XPeng (09868) by over 1.2 billion Hong Kong dollars and sold Weichai Power (02338) by over 500 million at high prices.

On November 6th, in the Hong Kong stock market, the Northbound funds had a net inflow of 5.479 billion Hong Kong dollars. Of this, the trading through the Shanghai-Hong Kong Stock Connect had a net inflow of 1.351 billion Hong Kong dollars, while the trading through the Shenzhen-Hong Kong Stock Connect had a net inflow of 4.128 billion Hong Kong dollars. The stocks with the highest net inflows from the Northbound funds were XPENG-W (09868), CSOP Hang Seng TECH Index ETF (03033), and HUA HONG SEMI (01347). The stocks with the highest net outflows from the Northbound funds were Weichai Power (02338), BABA-W (09988), and China Mobile Limited (00941). The active trading stocks through the Shanghai-Hong Kong Stock Connect were XPENG-W (09868), which had a net inflow of 1.213 billion Hong Kong dollars. Regarding news, on November 5th, XPENG Motors announced at the 2025 XPENG Technology Day that they will introduce new businesses and products in the fields of Robotaxi, humanoid Siasun Robot & Automation, and flying cars, including the launch of the L4 Robotaxi equipped with 4 Turing chips in 2026. They will also collaborate with Alibaba's ride-hailing platform Amap to provide Robotaxi services. Citigroup expects that these new businesses will positively impact the stock price. CSOP Hang Seng TECH Index ETF (03033) had a net inflow of 1.052 billion Hong Kong dollars. In terms of news, Guotou Securities stated that there may be a major style change in the Hong Kong stock market in the fourth quarter, with sectors like Heng Seng Technology and other low-growth sectors becoming relatively advantageous. Currently, the excess returns of the ChiNext Index over Heng Seng Technology have peaked and declined, and Heng Seng Technology's Internet sector is expected to outperform. Daiwa also expressed a positive view on the Chinese internet industry. HUA HONG SEMI (01347) and Semiconductor Manufacturing International Corporation (00981) had net inflows of 961 million and 618 million Hong Kong dollars respectively. In terms of news, SK Hynix announced that they had completed price and quantity negotiations with NVIDIA on the supply of the sixth generation High Bandwidth Memory (HBM4) for next year. The supply price for HBM4 will be more than 50% higher than that of the previous generation. Additionally, HUA HONG SEMI announced after-hours earnings, with third-quarter sales revenue reaching a record high of $635.2 million, a year-on-year increase of 20.7% and a quarter-on-quarter increase of 12.2%. The parent company's profit attributable to owners was $25.7 million, a year-on-year decrease of 42.6% and a quarter-on-quarter increase of 223.5%. Tencent (00700) had a net inflow of 364 million Hong Kong dollars. In terms of news, a research report by Lyon expects Tencent's third-quarter performance to be strong, with total revenue and adjusted EBIT growing by 14% and 21% year-on-year to 190 billion yuan and 74.1 billion yuan, respectively. The online gaming business is expected to grow by 18%, with strong performances from "Honor of Kings," "Peace Elite," "Delta Force," and "Clash Royale" likely to bring surprises. The bank expects this strong momentum to continue to the fourth quarter of 2025, with resilience in online gaming, advertising, and cloud businesses. Weichai Power (02338) saw a 20% surge in stock price today, prompting some Northbound funds to sell at high levels, resulting in a net outflow of 548 million Hong Kong dollars. In terms of news, on November 5th, British clean energy technology developer Ceres Power announced that they had reached a production licensing agreement with their largest Chinese shareholder Weichai Power. Weichai Power will produce Ceres' solid oxide fuel cells (SOFC) in China for stationary power systems, aiming to provide power for AI data centers, commercial buildings, and industry, with related revenue expected to be recognized in fiscal year 2026. Additionally, XIAOMI-W (01810) had a net inflow of 662 million Hong Kong dollars, while BABA-W (09988) and China Mobile Limited (00941) had net outflows of 308 million and 44.71 million Hong Kong dollars respectively.