Guosen: Since September, foreign capital outflows from Hong Kong internet stocks have been among the largest.

Guosen released a research report stating that northbound funds may have seen a small net outflow in the past week, among which flexible foreign capital may have seen a small net outflow. In the Hong Kong stock market, stable foreign capital inflow was HKD 3.8 billion, flexible foreign capital outflow was HKD 11.5 billion, and Stock Connect outflow was HKD 0.8 billion. In the Asia-Pacific market, foreign capital flowed out of Japan and South Korea in the past week, and flowed out of India in September. In the U.S. and European markets, funds flowed into Europe and the United States in August. The main views of Guosen are as follows: 1. A-shares: Northbound funds may have seen a small net outflow in the past week Northbound funds may have seen a small net outflow in the past week. During the trading days of the past week (2026/9/27-2026/9/30, the same below), northbound funds were estimated to have a net outflow of RMB 9.3 billion, and the previous week (2026/9/21-2026/9/24, the same below) was estimated to have a net outflow of RMB 7.0 billion. During the trading days of the past week, flexible foreign capital was estimated to have a net outflow of RMB 3.9 billion, and the previous week was estimated to have a net outflow of RMB 3.9 billion. In addition, Guosen summarized the top ten most active individual stocks on Stock Connect each day in the past week, among which Zhongji Innolight (total two-way trading volume on Stock Connect this week was RMB 12.2 billion, accounting for 12% of the stock's trading value that week, the same below), Contemporary Amperex Technology (RMB 10.9 billion, 20%), and Eoptolink Technology Inc., (RMB 7.1 billion, 10%) were relatively active in trading. 2. Hong Kong stocks: Since September, foreign capital outflows from Hong Kong internet stocks have been among the largest In the past week, total funds inflow into Hong Kong stocks was HKD 4.2 billion. According to the holdings details data of the Hong Kong Exchanges and Clearing Central Clearing and Settlement System, in the past week (2026/9/23-2026/9/28), various types of funds totaled an inflow of HKD 4.2 billion into the Hong Kong stock market, among which stable foreign capital inflow was HKD 3.8 billion, flexible foreign capital outflow was HKD 11.5 billion, Stock Connect outflow was HKD 0.8 billion, and local funds from Hong Kong or mainland China inflow was HKD 13.9 billion. At the industry level, in the past week foreign capital flowed more into pharmaceuticals and biologics, non-ferrous metals, ETFs, etc., while Stock Connect flowed more into software services, non-bank financials, banks, etc. Stable foreign capital in the past week mainly flowed into pharmaceuticals and biologics (HKD 3.1 billion), hardware equipment (HKD 1.4 billion), and discretionary consumer retail (HKD 1.2 billion), and flowed out more from electrical equipment (-HKD 2.5 billion), non-bank financials (-HKD 1.8 billion), and real estate II (-HKD 1.0 billion). Flexible foreign capital in the past week mainly flowed into electrical equipment (HKD 2.5 billion), non-ferrous metals (HKD 1.2 billion), and utilities II (HKD 0.7 billion), and flowed out more from software services (-HKD 6.3 billion), discretionary consumer retail (-HKD 2.4 billion), and textiles and apparel II (-HKD 2.2 billion). Stock Connect in the past week mainly flowed into software services (HKD 1.8 billion), non-bank financials (HKD 1.5 billion), and banks (HKD 1.3 billion), and flowed out more from non-ferrous metals (-HKD 2.6 billion), pharmaceuticals and biologics (-HKD 2.0 billion), and ETFs (-HKD 1.3 billion). 3. Other markets: Foreign capital flowed out of Japan and South Korea in the past week Asia-Pacific market: Foreign capital flowed out of Japan and South Korea in the past week, and flowed out of India in September. In the Japanese stock market, as of the latest week on 9/21, overseas investors had a net outflow of JPY 73.1 billion from the Japanese stock market that week, compared with an outflow of JPY 672.0 billion the previous week, and a cumulative net inflow of JPY 18.7 trillion since 2023. In the South Korean stock market, as of 10/1, overseas investors had a net outflow of KRW 8,126.0 billion from the South Korean stock market that week, compared with an outflow of KRW 246.0 billion the previous week, and a cumulative net outflow of KRW 178.9 trillion since 2023. In the Indian stock market, in September overseas institutional investors flowed out USD 3.75 billion from the Indian stock market, compared with an inflow of USD 3.10 billion the previous month, and a cumulative net outflow of USD 25.9 billion since 2023. U.S. and European markets: In August, funds flowed into Europe and into the United States. In the U.S. stock market, in August global mutual fund funds had a net inflow of USD 26.4 billion into the U.S. equity market, compared with an inflow of USD 73.1 billion the previous month, and a cumulative net inflow of USD 1,143.9 billion since 2020. In the European stock market, in August global mutual fund funds had net inflows into the U.K., German, and French equity markets of USD 0.03 billion, USD 1.74 billion, and USD 2.46 billion, respectively, compared with -USD 0.69 billion, -USD 0.31 billion, and USD 0.02 billion the previous month. Risk warning: Some fund data are estimates and may differ from the actual situation; the model is subject to risks of misspecification and failure.