Northbound funds | Northbound trading recorded a net buy of 2.603 billion. Pengcheng locked in over 70,000 orders. Northbound funds increased their position in Xiaomi (01810) by nearly HK$1 billion.

On October 12 in the Hong Kong stock market, northbound trading recorded a net buy of HK$2.603 billion. Among this, Hong Kong Stock Connect (Shanghai) recorded a net buy of HK$1.955 billion, and Hong Kong Stock Connect (Shenzhen) recorded a net buy of HK$649 million. The stocks with the largest net buys by northbound funds were XIAOMI-W (01810), AIA (01299), and WUXI BIO (02269). The stocks with the largest net sells by northbound funds were YOFC (06869), Semiconductor Manufacturing International Corporation (00981), and KB LAMINATES (01888). Active stocks on Hong Kong Stock Connect (Shanghai) Active stocks on Hong Kong Stock Connect (Shenzhen) XIAOMI-W (01810) received a net buy of HK$974 million. On October 8, according to Xiaomi Auto's official statement, as of October 7, one month after launch, cumulative locked orders for the Xiaomi Pengcheng N70 and N90 series exceeded 70,000 units. Daiwa noted that demand is concentrated in higher-end models such as the N70 Max/N90 Max, with the product mix better than the bank's previous expectations. The bank maintained a "Hold" rating and raised its target price from HK$26.2 to HK$27.6. AIA (01299) received a net buy of HK$729 million. UBS expects AIA's third-quarter new business value to decline 4% year-on-year at constant exchange rates, but as the base effect fades, group new business value in the fourth quarter will see a strong year-on-year rebound. Overall, new business value is expected to grow 10% year-on-year at constant exchange rates in 2026. Tencent (00700) received a net buy of HK$19.72 million. According to foreign media citing people familiar with the matter, Tencent told fixed-income investors on Monday that the company plans to issue about US$5 billion in bonds to fund AI-related capital expenditures, further stepping up its push into AI. The people said Tencent stated in a conference call with investors that the bond issuance could be priced as early as Tuesday. KINGBOARD HLDG (00148) and KB LAMINATES (01888) suffered net sells of HK$241 million and HK$348 million, respectively. Recently, the U.S. Printed Circuit Board Association (PCBAA) formally pressured the U.S. government and Department of Defense, explicitly proposing the core demand of fully removing Chinese PCB products from the military supply chain. The United States has set January 1, 2027 as the final deadline for fully removing PCB products from relevant countries in the military supply chain. Soochow pointed out that this PCBAA demand targets only the military PCB sector and does not involve commercial PCBs. Semiconductor Manufacturing International Corporation (00981) suffered a net sell of HK$434 million. On October 8, TSMC's latest revenue report showed that TSMC's September revenue was NT$511.86 billion, down 0.6% month-on-month and up 54.6% year-on-year. TSMC's revenue for the first three quarters of 2026 was NT$3,898.73 billion, up 41.1% year-on-year. Yangtze Optical Fibre and Cable (06869) suffered a net sell of HK$569 million. UBS previously published a research report stating that since its share price peaked in June, YOFC's stock price has fallen 37%, due to investor concerns that fiber capacity expansion announced by peers and new companies could cause the company's earnings to peak in 2027. However, UBS believes the risk of overcapacity is limited. It raised its target price from HK$290 to HK$330 and reiterated a "Buy" rating. In addition, WUXI BIO (02269) and Cig Shanghai (06166) received net buys of HK$79.5 million and HK$11.43 million, respectively. Meanwhile, BABA-W (09988) and CNOOC (00883) suffered net sells of HK$110 million and HK$12.21 million, respectively.