Northbound funds | Northbound trading recorded a net purchase of RMB2.415 billion; northbound funds added to Tencent (00700) and other tech internet stocks while selling off AI hardware throughout the day.

On November 6 in the Hong Kong stock market, northbound trading recorded a net purchase of HK$2.415 billion. Among this, Stock Connect (Shanghai) recorded a net purchase of HK$3.908 billion, while Stock Connect (Shenzhen) recorded a net sell of HK$1.493 billion. The stocks with the largest net purchases by northbound funds were Tencent (00700), MEITUAN-W (03690), and BABA-W (09988). The stocks with the largest net sells by northbound funds were YOFC (06869) and KB LAMINATES (01888). Stock Connect (Shanghai) active trading stocks Stock Connect (Shenzhen) active trading stocks Tencent (00700) received a net purchase of HK$760 million. On November 4, Hunyuan released its latest-generation large language model, Hy4. Daiwa believes that Hy4 is a solid incremental improvement that places Tencent in the upper tier of open-source models and strengthens the agentic productivity foundation for cloud, workplace, and consumer products; the upcoming Hy4 Flash is expected to further reinforce its cost-effectiveness positioning. MEITUAN-W (03690) received a net purchase of HK$655 million. EB SECURITIES published a research report on Meituan stating that its food delivery market share remains firmly above 60%, the competitive landscape is becoming more rational, and its core business has achieved monthly profitability. The instant retail scale is expanding rapidly, its overseas Keeta layout is progressing smoothly, its physical AI strategy builds long-term barriers, and progress in reducing losses and improving efficiency has exceeded expectations. BABA-W (09988) received a net purchase of HK$595 million. CLSA published a research report stating that it expects Alibaba's performance for the fiscal second quarter ended September to be strong, with accelerated cloud business growth, stable e-commerce business, and significantly narrowed instant retail losses. The bank expects the group's revenue to grow 8.9% year on year to RMB270 billion, with adjusted EBITA surging 230% year on year to RMB29.7 billion. Hua Hong Grace Semiconductor (01347) received a net purchase of HK$377 million. Hua Hong Grace Semiconductor announced that in the third quarter it achieved operating revenue of RMB6.706 billion, up 13.95% year on year; net profit was RMB835 million, up 136.14% year on year. In the third quarter, Huali Microelectronics was formally included in the consolidated financial statements, and in its first quarter of consolidation it already demonstrated significant financial gains and operational synergies; excluding the impact of Huali Microelectronics' consolidation, Hua Hong Grace Semiconductor's original business sales revenue and gross margin both exceeded the upper end of previous quarterly guidance. Z.AI (02513) received a net purchase of HK$73.92 million. JP Morgan published a research report stating that demand for Chinese AI models is currently between two demand steps: programming and broader white-collar work. AI demand beyond programming has appeared later than the bank originally expected, but the bank believes the market is overly pessimistic and remains bullish on the sector, with Z.AI as its top pick. YOFC (06869) and KB LAMINATES (01888) suffered net sells of HK$770 million and HK$725 million, respectively. Less than 24 hours after the U.S. midterm election results were released, U.S. Representative Yassamin Ansari said that Democrats need to put a pause on advanced artificial intelligence development at the top of their first-day agenda, regulate the runaway industry, and ban artificial superintelligence. Texas Governor-elect Gina Hinojosa also said, "We must halt current data center projects before measures are introduced to protect Texans." In addition, Semiconductor Manufacturing International Corporation (00981) and Zhongji Innolight (03308) received net purchases of HK$11.93 million and HK$9.98 million, respectively.