Major Events - Different Group (06090) has a public offering with a subscription rate of 3317.47 times the upper limit price [1] - Botai Che Lian (02889) plans to globally offer 10.4369 million H-shares from September 22 to September 25 [1] - Changhong Jiahua (03991) received a privatization offer from Changhong Group at a premium of approximately 32.93%, with resumption of trading on September 23 [1] - Huajian Medical (01931) signed a strategic cooperation agreement with Chuangsheng Group-B (06628) involving the tokenization of a $1.5 billion innovative drug pipeline asset [1] - Gilead Sciences-B (01672) reported that ASC47 combined with Semaglutide showed a weight loss effect improvement of up to 56.2% compared to Semaglutide alone in obese subjects [1] - Fosen Pharmaceutical (01652) plans to sell all equity of Henan Fosen Smart Energy Technology for 73 million yuan [1] - Maiyue Technology (02501) entered into strategic cooperation agreements with NetEase Youdao and Ferry International [1] - Zhongchuang Zhiling (00564) intends to invest 270 million yuan to establish Yaxinke Thermal Management Technology (Yizheng) Co., Ltd. to enhance market competitiveness in automotive thermal management systems [1] - Garmin Group Holdings (01271) plans to sell a portfolio of four data center projects for 5.25 billion HKD [1] Buybacks and Increases - Tencent Holdings (00700) repurchased 862,000 shares for 550 million HKD on September 22 [1] - Standard Chartered Group (02888) repurchased 517,100 shares for 7.3877 million GBP on September 19 [1] - Midea Group (00300) repurchased 3.415 million A-shares for 250 million yuan on September 22 [1] - Anta Sports (02020) repurchased 2.12 million shares for 199 million HKD on September 22 [1] - Kuaishou-W (01024) repurchased 1 million shares for 73.7998 million HKD on September 22 [1] - Heng Rui Pharmaceutical (01276) repurchased 656,000 A-shares for 45.7493 million yuan on September 19 [1] - Shenzhen Expressway Company (00548) received an increase of 25.38 million H-shares from shareholder Yunsong Capital [1]

Core Insights - Anta Sports made its first appearance on the Hong Kong Stock Connect active trading list in nearly a month on September 22, 2023 [2][3] - The total trading volume of active stocks on the Hong Kong Stock Connect reached HKD 446.44 billion, accounting for 32.80% of the day's total trading amount, with a net buying amount of HKD 77.54 billion [2] - Alibaba-W led the trading volume with HKD 90.45 billion, followed by SMIC and Shankai Holdings with HKD 89.67 billion and HKD 55.25 billion respectively [2] Trading Activity Summary - Anta Sports had a trading volume of HKD 8.08 billion and a net buying amount of HKD 1.23 billion, with a closing price of HKD 94.65, reflecting a daily decline of 2.22% [2][3] - The most frequently listed stocks in the past month include Alibaba-W and Meituan-W, each appearing 21 times, indicating strong interest from Hong Kong Stock Connect funds [2] - Other notable stocks on the active trading list include Tencent Holdings, Xiaomi Group W, and Huahong Semiconductor, with respective trading volumes of HKD 34.23 billion, HKD 28.92 billion, and HKD 7.91 billion [2][3]

Market Overview - On September 22, the Hang Seng Index fell by 0.76%, with southbound trading totaling HKD 136.09 billion, comprising HKD 74.41 billion in buying and HKD 61.68 billion in selling, resulting in a net buying amount of HKD 12.736 billion [1] Southbound Trading Details - Southbound trading through the Stock Connect (Shenzhen) recorded a total transaction amount of HKD 50.073 billion, with buying at HKD 27.328 billion and selling at HKD 22.745 billion, leading to a net buying of HKD 4.583 billion [1] - Southbound trading through the Stock Connect (Shanghai) had a total transaction amount of HKD 86.020 billion, with buying at HKD 47.087 billion and selling at HKD 38.933 billion, resulting in a net buying of HKD 8.154 billion [1] Active Stocks - Alibaba-W was the most actively traded stock with a total transaction amount of HKD 90.45 billion and a net buying of HKD 26.14 billion, while SMIC and Shankai Holdings followed with transaction amounts of HKD 89.67 billion and HKD 55.25 billion respectively [1] - The top net buying stock was the Tracker Fund of Hong Kong (盈富基金) with a net buying amount of HKD 28.64 billion, despite a closing price drop of 0.88% [1] - Meituan-W had the highest net selling amount of HKD 3.85 billion, with a closing price decline of 2.26% [1] Continuous Net Buying - Alibaba-W and Pop Mart were the only two stocks with continuous net buying for more than three days, with Alibaba-W having a total net buying of HKD 604.43 billion over 22 days, and Pop Mart with HKD 21.28 billion over 3 days [2] Summary of Active Stocks on September 22 | Code | Name | Transaction Amount (HKD million) | Net Buying (HKD million) | Daily Change (%) | | --- | --- | --- | --- | --- | | 02800 | Tracker Fund | 300062.61 | 286406.81 | -0.88 | | 09988 | Alibaba-W | 904530.67 | 261418.50 | 0.06 | | 02828 | Hang Seng China Enterprises | 86111.09 | 86061.50 | -1.48 | | 06088 | FITHONTENG | 240377.57 | 45123.01 | 17.83 | | 00412 | Shankai Holdings | 552511.40 | 42858.63 | 29.76 | | 00981 | SMIC | 896702.36 | 31778.65 | 5.16 | | 01810 | Xiaomi Group-W | 289237.11 | 15351.09 | -1.06 | | 00700 | Tencent Holdings | 342267.30 | 13464.57 | -0.23 | | 02020 | Anta Sports | 80758.47 | 12271.30 | -2.22 | | 01347 | Hua Hong Semiconductor | 79088.60 | 10589.67 | 3.57 | | 02228 | Crystal International | 158175.95 | 6579.02 | 8.06 | | 09992 | Pop Mart | 152325.56 | 1922.21 | -1.40 | | 03690 | Meituan-W | 382208.58 | -38469.29 | -2.26 | [2]

Market Overview - On September 22, the Hang Seng Index fell by 0.76%, closing at 26,344.14 points, while southbound funds through the Stock Connect recorded a net purchase of 12.736 billion HKD [2][5]. Trading Activity - The total trading volume for the Stock Connect on September 22 was 136.093 billion HKD, with a net purchase of 12.736 billion HKD. Specifically, the Shanghai Stock Connect had a trading volume of 86.020 billion HKD and a net purchase of 8.154 billion HKD, while the Shenzhen Stock Connect had a trading volume of 50.073 billion HKD and a net purchase of 4.583 billion HKD [2][3]. Active Stocks - In the Shanghai Stock Connect, the top active stock was SMIC, with a trading volume of 5.839 billion HKD, followed by Alibaba-W and Shankai Holdings, with trading volumes of 5.349 billion HKD and 4.155 billion HKD, respectively. The largest net purchase was in the Yingfu Fund, amounting to 2.864 billion HKD, despite its closing price dropping by 0.88% [2][3]. - In the Shenzhen Stock Connect, Alibaba-W led with a trading volume of 3.696 billion HKD, followed by SMIC and Tencent Holdings, with trading volumes of 3.128 billion HKD and 1.823 billion HKD, respectively. Alibaba-W also had the highest net purchase of 1.063 billion HKD, while Meituan-W recorded the largest net sell of 180 million HKD, closing down by 2.26% [3][4]. Stock Performance - The performance of key stocks included: - SMIC: Trading volume of 5.839 billion HKD, net sell of 9.108 million HKD, with a daily increase of 5.16% [3]. - Alibaba-W: Trading volume of 5.349 billion HKD, net buy of 1.551 billion HKD, with a daily increase of 0.06% [3]. - Shankai Holdings: Trading volume of 4.154 billion HKD, net buy of 248.74 million HKD, with a daily increase of 29.76% [3]. - Meituan-W: Trading volume of 2.193 billion HKD, net sell of 20.462 million HKD, with a daily decrease of 2.26% [3][4].

Summary of Key Points Core Viewpoint - Tencent Holdings has been actively repurchasing its shares, indicating a strong commitment to enhancing shareholder value and confidence in its stock performance [2][3]. Group 1: Share Buyback Details - On September 22, Tencent repurchased 862,000 shares at a price range of HKD 635.000 to HKD 643.000, totaling HKD 550 million [2]. - Since August 18, the company has conducted buybacks for 26 consecutive days, acquiring a total of 23.255 million shares for a cumulative amount of HKD 14.316 billion [2]. - During this buyback period, the stock price has increased by 8.28% [2]. Group 2: Year-to-Date Buyback Activity - Year-to-date, Tencent has completed 88 buyback transactions, acquiring a total of 11.2 million shares for a total expenditure of HKD 54.359 billion [3]. - The buyback activity reflects a strategic approach to managing capital and responding to market conditions [3]. Group 3: Historical Buyback Prices - The buyback prices have varied, with the highest recorded price being HKD 664.000 on September 18 and the lowest at HKD 586.000 on August 20 [3][4]. - The detailed buyback data shows consistent investment in share repurchase, with amounts typically around HKD 55 million per transaction [3][4].

Core Viewpoint - The integration of AI in drug development is poised to revolutionize the pharmaceutical industry by significantly reducing time and costs associated with traditional drug research processes [4][5][6]. Group 1: AI's Impact on Drug Development - AI is expected to accelerate target discovery and compound design, lower experimental failure rates, and optimize resource allocation in preclinical research [4][5]. - Traditional drug development typically requires over a decade and costs between $1 billion to $1.5 billion, with a success rate of only 10% [3]. - AI can transform the drug development model from an experimental-driven approach to a data and computation-driven approach, enhancing the precision of hypothesis generation and speeding up data analysis [6][7]. Group 2: Tencent's Role in AI Drug Development - Tencent has established a strong presence in the AI drug development sector, having invested in AI-driven platforms and technologies over the past decade [4][5]. - The company focuses on providing AI tools that enhance efficiency in drug discovery, allowing pharmaceutical companies to generate thousands of compounds for validation in a fraction of the time compared to traditional methods [9][11]. - Tencent's AI platform can reduce costs by 42.5% and improve success rates by 3 to 5 times compared to traditional methods [15]. Group 3: Strategic Positioning and Future Outlook - Tencent aims to build a comprehensive research system that spans from molecular to systemic studies, leveraging AI to facilitate drug development [8][16]. - The company positions itself as a platform provider, enhancing the capabilities of pharmaceutical companies without directly engaging in full-scale clinical services [8][13]. - The long-term vision for Tencent in the healthcare sector is to create a high-standard, accessible medical service through technological innovation and collaboration with partners [16].

Core Viewpoint - The Hong Kong stock market has shown strong performance, with the Hang Seng Index surpassing 27,000 points, marking a three-and-a-half-year high, driven by several key factors including improved overseas liquidity and stable earnings expectations for tech stocks [1] Group 1: Market Performance - The Hang Seng Index has achieved a significant increase, ranking among the top global stock markets [1] - In September, southbound capital inflow into Hong Kong stocks reached 105.2 billion, with 30 billion and 16.8 billion flowing into tech and internet sectors via ETFs respectively [1] Group 2: Technology Indices Overview - Major Hong Kong tech indices include the Hang Seng Tech Index, Hang Seng Internet Tech Index, and Hong Kong Stock Connect Tech Index, all of which have seen growing fund sizes [2] - The Hang Seng Tech Index fund size grew from 8.587 billion in 2020 to 278.536 billion in 2025, while the Hong Kong Stock Connect Tech Index reached 43.270 billion since its inception in 2022 [2] Group 3: Stock Selection and Industry Distribution - The Hang Seng Tech and Hang Seng Internet Tech Indices can invest in all tech companies in the Hong Kong market, providing diversification, while the Hong Kong Stock Connect Tech Index is limited to designated stocks [3] - The Hang Seng Tech Index covers a wide range of industries, focusing on the AI supply chain, semiconductors, and new energy vehicles, while the Hong Kong Stock Connect Tech Index emphasizes consumer electronics and e-commerce [4] Group 4: Heavyweight Holdings and Market Style - The Hang Seng Tech Index has a balanced weight distribution across various tech sectors, while the Hong Kong Stock Connect Tech Index is concentrated in leading companies like Tencent and Xiaomi [5] - The Hang Seng Tech Index primarily consists of large-cap companies with market caps over 100 billion, whereas the Hang Seng Internet Tech Index leans towards mid and small-cap stocks [6] Group 5: Investment Opportunities - The current market environment presents a favorable window for investing in the Hong Kong tech sector, supported by improved expectations, low valuations, and capital inflows [8] - The three major indices have a price-to-earnings ratio around 20, below the 50th percentile of the past decade, indicating a valuation advantage compared to global tech indices [9]

Core Insights - Tencent's market capitalization has recently surpassed 6 trillion HKD, reflecting strong market confidence in its strategic transformation towards AI and international expansion [1][11] - The company's Q2 financial report shows a revenue of 184.5 billion CNY, a 15% year-on-year increase, and an operating profit of 69.25 billion CNY, up 18% [1] - Tencent's AI-driven marketing services revenue grew by 20%, indicating the effectiveness of its long-term investments in AI [1] AI Strategy and Developments - Tencent is actively embracing the AI trend, with AI becoming a key growth engine for cloud computing, as highlighted by the significant demand for GPU resources for large model training [2] - The company has invested 831 billion CNY in capital expenditures over the past three quarters, with a total of 1,023 billion CNY in the last year, marking a 178% increase year-on-year [3] - AI infrastructure (AIInfra) is a focal point for Tencent's cloud business, with plans to enhance both domestic and international infrastructure to support its applications and external clients [3] Product and Service Enhancements - AI capabilities have significantly improved Tencent's core business areas, including advertising and gaming, with AI enhancing ad targeting and game content development [6] - The newly launched intelligent agent development platform TCAP has quickly gained popularity among partners, demonstrating the efficiency of AI in customer support [4] Global Expansion and Market Position - Tencent's global strategy includes supporting Chinese enterprises in their international ventures, with recent investments in data centers in Saudi Arabia and Osaka, and new initiatives in Indonesia [7] - The number of Tencent Cloud's overseas clients has doubled in a year, exceeding 10,000 and covering over 80 countries, showcasing its growing global presence [7] Long-term Vision and Market Trends - Tencent's dual strategy of "going global + AI" is seen as a response to the digital transformation and AI revolution, positioning the company for future growth [8][9] - The company is adapting to mainstream domestic chips and engaging with the open-source community, although its pace in this area is slower compared to competitors like Alibaba Cloud and Huawei Cloud [10]

Core Viewpoint - Tencent Holdings (00700.HK) is set to release its Q3 2025 financial report on November 13, 2025, with expectations of mixed performance in revenue and net profit [1]. Financial Performance Expectations - Revenue is projected to be between 183.23 billion to 192.20 billion RMB, reflecting a year-on-year growth of 9.6% to 15.0% [2][4]. - Net profit is expected to range from 51.36 billion to 60.07 billion RMB, showing a year-on-year change of -3.5% to 12.8% [2][4]. - Adjusted net profit is forecasted to be between 59.15 billion to 72.70 billion RMB, with a year-on-year change of -1.1% to 21.5% [2][4]. Recent Sell-Side Insights - Haitong International Securities noted that Tencent exceeded expectations in Q2 2025, achieving a revenue of 184.5 billion RMB, a 15% year-on-year increase [5]. - The adjusted operating profit grew by 18% year-on-year, reaching 69.2 billion RMB, with an operating profit margin of 37.5% [5]. - The gaming sector showed strong growth, with domestic games increasing by 17% and international games by 35% [6]. Business Segment Performance - Gaming: Domestic gaming revenue grew by 17%, while international gaming revenue surged by 35%. The upcoming release of Valorant Mobile is expected to generate approximately 6 billion RMB in annual revenue [6]. - Advertising: Revenue increased by 20%, driven by AI technology that enhanced click-through rates and advertising demand, indicating long-term growth potential [7]. - Financial Technology and Business Services: Revenue rose by 10%, with expectations for continued growth in business services [7].

Core Viewpoint - Tencent has developed a professional-grade AI workstation called Hunyuan 3D Studio, designed specifically for 3D designers, game developers, and modelers, which streamlines the entire design process from concept to final game assets, significantly reducing production time from days to minutes [3][4]. Group 1: Key Features of Hunyuan 3D Studio - The platform includes seven core technology modules that ensure a seamless and automated workflow throughout the asset creation process [6]. - The workflow encompasses component splitting, controllable image generation, high-fidelity geometry generation, low-poly topology generation, semantic UV unwrapping, texture generation and editing, and rigging and animation effects [9][10]. Group 2: Component Splitting - The component splitting module utilizes connectivity analysis and semantic segmentation algorithms to automatically decompose complex models into logically and functionally independent components, allowing for independent editing and animation [9][10]. - The process involves using a feature extractor and segmentation heads to predict masks for component boundaries, ensuring high accuracy in the segmentation results [15][18]. Group 3: Controllable Image Generation - The controllable image generation module allows users to generate 3D design images in various mainstream game art styles by providing input images and style instructions [33][34]. - The system employs a dataset constructed from pairs of images to achieve precise mapping between realistic images and stylized outputs, enhancing the model's ability to generate consistent and high-quality designs [34][41]. Group 4: High-Fidelity Geometry Generation - High-fidelity geometry generation is based on the Hunyuan 3D framework, which includes a variational autoencoder for compressing and reconstructing 3D geometries [43][45]. - The process utilizes a diffusion model to efficiently generate high-quality samples from single input images, ensuring that the generated geometries align closely with the input prompts [47][50]. Group 5: Low-Poly Topology Generation - The low-poly topology module aims to create clean and art-compliant topology structures from high-fidelity geometries, employing a self-regressive model to predict vertices and faces directly from point clouds [55][56]. - The module incorporates a tokenization method that enhances training and inference efficiency by modeling the mesh as a sequence [59][60]. Group 6: Texture Generation and Editing - The texture generation framework extends 2D diffusion models to support multi-view texture generation, addressing challenges such as cross-view consistency and the transition from RGB textures to physically-based rendering (PBR) materials [76][78]. - A text-guided texture editing model has been developed, allowing for robust texture synthesis and editing based on high-quality PBR material datasets [81][84]. Group 7: Rigging and Animation Effects - The rigging and animation module includes a humanoid character animation branch and a general character animation branch, ensuring accurate bone generation and skinning through a template-based approach [97][100]. - The system allows for parameterized control, enabling high-level artistic adjustments throughout the pipeline while maintaining the ability to incrementally update without complete recalculation [104][105].