Northbound funds | Northbound trading recorded a net buying of 7.909 billion yuan, with domestic capital rushing to buy technology stocks all day, and increasing holdings of CSOP Hang Seng TECH Index ETF (03033) by over 700 million Hong Kong dollars.

On December 17th, in the Hong Kong stock market, the Northbound funds had a net inflow of 7.909 billion Hong Kong dollars, with the Shanghai-Hong Kong Stock Connect having a net inflow of 2.218 billion Hong Kong dollars and the Shenzhen-Hong Kong Stock Connect having a net inflow of 5.691 billion Hong Kong dollars. The stocks with the highest net inflow from Northbound funds were XIAOMI-W (01810), MEITUAN-W (03690), and CSOP Hang Seng TECH Index ETF (03033). The stocks with the highest net outflow from Northbound funds were China Mobile Limited (00941) and CNOOC (00883). Active trading stocks under the Shanghai-Hong Kong Stock Connect: Active trading stocks under the Shenzhen-Hong Kong Stock Connect: XIAOMI-W (01810) had a net inflow of 1.062 billion Hong Kong dollars. In terms of news, Xiaomi Group partner and CEO Lu Weibing announced at the Xiaomi "People, Car, and Home Full Ecosystem" Partner Conference 2025 that Xiaomi will invest 200 billion yuan in research and development over the next five years, with the long-term goal of becoming a global leader in hardcore technology. In addition, Morgan Stanley expects the company to make more significant progress in cloud artificial intelligence and edge artificial intelligence in the future. Northbound funds are actively investing in tech and internet stocks, with MEITUAN-W (03690), BABA-W (09988), Tencent (00700), and KUAISHOU-W (01024) receiving a net inflow of 750 million, 543 million, 457 million, and 184 million Hong Kong dollars respectively, while CSOP Hang Seng TECH Index ETF (03033) also received a net inflow of 745 million Hong Kong dollars. In terms of news, a Soochow research report believes that from a funding perspective, Southbound funds are mainly defensive, generally waiting for the end of this year to make a move at the start of next year. The first quarter of policies has a strong consensus, with optimism not only in technology but also in non-ferrous metals. In the medium to long term, the valuation of Hong Kong AI technology leaders is in a reasonable range, and once new policies or industry catalysts occur, funds will be activated, leading to a significant rebound in the Hang Seng TECH Index. YOFC (06869) had a net inflow of 413 million Hong Kong dollars. In terms of news, YOFC announced after hours that it had completed the placement of 70 million new H shares, with a net amount of approximately 2.229 billion Hong Kong dollars, of which about 80% will be used for the development of the company's overseas business. The company's MPO, AOC, high-speed copper cable, and other optical interconnect component business established through its subsidiary EverProX Technologies has become a strong growth point, benefiting from the construction of AI data centers in North America and the continuous expansion of the company's overseas business. China Life Insurance (02628) had a net inflow of 313 million Hong Kong dollars. In terms of news, China Securities Co.,Ltd. released a research report stating that with the recent stabilization and rise of long-term interest rates, as around 75%-80% of the overall asset allocation structure of insurance funds is in fixed-income assets, the market's expectation for the long-term investment returns of listed insurance companies is somewhat pessimistic, directly suppressing the valuation of the life insurance sector. However, with the recent stabilization and rise of long-term interest rates, with the 10-year government bond yield now above 1.8%, it is expected to drive the valuation recovery of listed insurance companies. Semiconductor Manufacturing International Corporation (00981) had a net inflow of 217 million Hong Kong dollars. In terms of news, TrendForce recently released the revenue rankings of the top ten wafer foundries in the third quarter of 2025. Overall, the total revenue of the top ten wafer foundries in the third quarter increased by 8.1%, reaching nearly 45.1 billion US dollars. The market share of Semiconductor Manufacturing International Corporation, ranked third, and Samsung, ranked second, are getting closer, currently only 1.7 percentage points apart. In addition, Zijin Mining Group (02899) and Industrial and Commercial Bank of China (01398) received a net inflow of 357 million and 23.92 million Hong Kong dollars respectively. While China Mobile Limited (00941) and CNOOC (00883) experienced a net outflow of 514 million and 132 million Hong Kong dollars respectively.