Core Viewpoint - ZTE Corporation's wholly-owned subsidiary, ZTE Microelectronics, has developed the HanYu M1 chip, which is a high-performance central computing platform SoC chip designed for the next generation of automotive electronic and electrical architectures [1] Group 1 - The HanYu M1 chip features high performance, large bandwidth, and high security [1] - It employs a multi-core heterogeneous architecture, providing strong computing power and low-latency processing capabilities for multifunctional domains and centralized computing units [1] - The chip is scheduled for delivery by the end of September 2025 [1]

Core Insights - On October 14, 2025, Alibaba-W (09988), SMIC (00981), and Tencent Holdings (00700) were the top three companies by trading volume in the southbound trading of the Stock Connect, with trading amounts of 131.44 billion, 80.15 billion, and 43.40 billion respectively [1][2] - In the southbound trading of the Shenzhen-Hong Kong Stock Connect, Alibaba-W (09988), SMIC (00981), and Tencent Holdings (00700) also ranked as the top three, with trading amounts of 78.81 billion, 49.66 billion, and 30.65 billion respectively [1][2] Southbound Trading Highlights - The top three active companies in the southbound trading of the Shanghai-Hong Kong Stock Connect were: - Alibaba-W (09988): 131.44 billion with a net buy of -7.36 billion - SMIC (00981): 80.15 billion with a net buy of -3.24 billion - Tencent Holdings (00700): 43.40 billion with a net buy of +1.61 billion [2] - The top three active companies in the southbound trading of the Shenzhen-Hong Kong Stock Connect were: - Alibaba-W (09988): 78.81 billion with a net buy of -596.46 million - SMIC (00981): 49.66 billion with a net buy of -6.33 billion - Tencent Holdings (00700): 30.65 billion with a net buy of +5.01 billion [2]

Core Insights - Southbound funds recorded a trading volume of approximately 181.25 billion HKD, a decrease of about 45.8 billion HKD compared to the previous day, accounting for 45.44% of the total turnover of the Hang Seng Index, marking two consecutive days below 50% [1] - The Hang Seng Index continued to decline, while southbound funds increased their positions with a net purchase of approximately 8.60 billion HKD, including a net inflow of about 4.97 billion HKD from the Shanghai-Hong Kong Stock Connect and 3.63 billion HKD from the Shenzhen-Hong Kong Stock Connect [1] Individual Stock Performance - Xiaomi Group-W (01810.HK) saw a net purchase of 0.92 billion HKD, with a short-term decline of 0.94% and an increase of 5.26 million shares over the past five days [2][3] - Tencent Holdings (0700.HK) experienced a net purchase of 0.66 billion HKD, with a short-term decline of 2.82% and an increase of 451,000 shares over the past five days [2][3] - Crystal Technology Holdings (02228.HK) had a net purchase of 0.43 billion HKD, with a short-term decline of 2.58% and a reduction of 1.017 million shares over the past five days [2][3] - Semiconductor Manufacturing International Corporation (00981.HK) faced a net outflow of 0.96 billion HKD, with a significant short-term decline of 8.48% and a reduction of 1.769 million shares over the past five days [2][3] - Alibaba Group-W (09988.HK) saw a net outflow of 0.80 billion HKD, with a short-term decline of 4.31% and an increase of 5.099 million shares over the past five days [2][3] - ZTE Corporation (00763.HK) experienced a net outflow of 0.65 billion HKD, with a short-term decline of 9.47% and an increase of 1.409 million shares over the past five days [2][3] Trading Activity Summary - The net inflow from southbound trading was 8.60 billion HKD, with 4.97 billion HKD from the Shanghai-Hong Kong Stock Connect and 3.63 billion HKD from the Shenzhen-Hong Kong Stock Connect [4] - The top active stocks in the southbound trading included Alibaba Group-W, Semiconductor Manufacturing International Corporation, and Tencent Holdings, with notable net outflows for Alibaba and Semiconductor Manufacturing International Corporation [5]

Summary of Key Points Core Viewpoint - The Hong Kong stock market experienced significant net inflows from northbound trading, with a total net buy of 86.03 billion HKD on October 14, 2023, indicating strong investor interest in certain stocks while others faced selling pressure [1]. Group 1: Stock Performance - The top net bought stocks included Southern Hang Seng Technology (03033), Xiaomi Group-W (01810), and Tencent (00700) [1]. - The most sold stocks were Semiconductor Manufacturing International Corporation (00981), Alibaba Group-W (09988), and Innovent Biologics (01347) [1]. - Alibaba Group-W had a net outflow of 7.36 billion HKD, while Semiconductor Manufacturing International Corporation saw a net outflow of 3.24 billion HKD [2]. Group 2: Trading Activity - Northbound trading through the Shanghai Stock Connect accounted for a net buy of 49.73 billion HKD, while the Shenzhen Stock Connect recorded a net buy of 36.31 billion HKD [1]. - Notable net inflows included 11.47 billion HKD for Southern Hang Seng Technology and 6.62 billion HKD for Tencent, while Alibaba faced a net sell of 7.95 billion HKD [4]. Group 3: Company-Specific News - Xiaomi Group-W faced scrutiny after a fire incident involving its vehicle, leading to a net buy of 9.23 billion HKD, while the company also repurchased 400 million shares for 1.97 billion HKD [5]. - Crystal Technology Holdings (02228) received a net buy of 4.26 billion HKD, with analysts highlighting its potential in robotics and AI pharmaceuticals [5]. - Semiconductor stocks, including Hua Hong Semiconductor (01347) and Semiconductor Manufacturing International Corporation (00981), faced significant selling pressure, with net outflows of 1.1 billion HKD and 9.57 billion HKD, respectively [6][8].

Core Insights - ZTE Corporation has launched the RoomPON 7.0 all-optical central screen product, marking a new phase in smart home technology focused on AI-driven experiences [1][2] - The release signifies a strategic shift from bandwidth expansion to enhancing smart experiences, emphasizing deep collaboration with China Mobile [1] Product Development - RoomPON 7.0 features a 6 TOPS NPU computing power and 8K single-chip decoding capability, with an overall performance improvement of 85% compared to the previous generation [2] - The product introduces an AI home "service engine" that includes intent recognition, low-latency TTS, and high-precision voiceprint recognition, positioning it as an intelligent endpoint capable of understanding and serving user needs [2] Market Positioning - ZTE's home terminal annual shipment has surpassed 100 million units, with FTTR products reaching nearly 30 million sets [1] - The RoomPON 7.0 serves as a unified interaction entry point covering five core scenarios: family memory, health care, home security, interactive entertainment, and network enjoyment, enhancing the digital living experience [2] Future Strategy - ZTE aims to continue collaborating with global industry partners to build an AI home ecosystem, leveraging technology and cooperation to improve digital living for households [2]

Group 1 - ZTE Corporation's stock price dropped by 5.07% to 50.95 CNY per share, with a trading volume of 16.238 billion CNY and a turnover rate of 7.54%, resulting in a total market capitalization of 243.721 billion CNY [1] - ZTE Corporation, established on November 11, 1997, and listed on November 18, 1997, is located in Shenzhen, Guangdong Province, and primarily engages in the sale of electronic and communication equipment components [1] - The company's main business revenue composition includes: 49.00% from carrier networks, 26.91% from government and enterprise business, and 24.09% from consumer business [1] Group 2 - According to data, a fund under Great Wall Fund holds a significant position in ZTE Corporation, with the Great Wall Jiutai CSI 300 Index A Fund (200002) holding 300,700 shares, accounting for 1.36% of the fund's net value, ranking as the eighth largest holding [2] - The Great Wall Jiutai CSI 300 Index A Fund was established on May 21, 2004, with a latest scale of 594 million CNY, and has achieved a year-to-date return of 24.04%, ranking 2291 out of 4220 in its category [2] - The fund manager, Yang Jianhua, has a tenure of 21 years and 152 days, with a total fund asset scale of 4.115 billion CNY, achieving a best return of 260.03% and a worst return of -55.51% during his tenure [2]

Group 1 - ZTE Corporation's stock fell by 5.07% to 50.95 CNY per share, with a trading volume of 16.25 billion CNY and a turnover rate of 7.55%, resulting in a total market capitalization of 243.72 billion CNY [1] - ZTE Corporation, established on November 11, 1997, and listed on November 18, 1997, is located in Shenzhen, Guangdong Province, and primarily engages in the sale of electronic and communication equipment components [1] - The company's main business revenue composition is as follows: 49.00% from carrier networks, 26.91% from government and enterprise business, and 24.09% from consumer business [1] Group 2 - From the perspective of major fund holdings, one fund under Guotai Haitong Asset Management heavily invested in ZTE Corporation, specifically the Guotai Junan CSI 300 Index Enhanced Fund A (018257), which held 662,900 shares, accounting for 1.23% of the fund's net value [2] - The fund has incurred an estimated floating loss of approximately 1.80 million CNY today [2] - The Guotai Junan CSI 300 Index Enhanced Fund A was established on April 19, 2023, with a latest scale of 9.52 billion CNY, achieving a year-to-date return of 17.83% and a one-year return of 20.61% [2]

Market Overview - The market opened higher but showed divergence, with the ChiNext Index experiencing a drop of over 2% after initially rising more than 1% [1] - As of the morning close, the Shanghai Composite Index increased by 0.21%, while the Shenzhen Component Index fell by 1.02%, and the ChiNext Index declined by 2.24% [1] Sector Performance - The financial sector was notably active, with bank stocks collectively rising [2] - The photovoltaic sector saw a surge, with leading company LONGi Green Energy hitting the daily limit [2] - The liquor sector also performed well, with Kweichow Moutai reaching the daily limit [2] - The coal sector showed strong performance, with Dayou Energy achieving two consecutive daily limits in three days [2] - In contrast, the semiconductor sector faced weakness, with companies like Wingtech Technology hitting the daily limit down, and others like Opal Photonics and Wavelength Optoelectronics experiencing collective adjustments [2] Trading Volume - The total trading volume for the Shanghai and Shenzhen markets reached 1.67 trillion yuan, an increase of 90.5 billion yuan compared to the previous trading day [3] - Notable individual stock trading volumes included Northern Rare Earth with over 19 billion yuan, followed by New Yisheng, ZTE Corporation, and Baosteel with significant trading volumes [3]

Core Viewpoint - ZTE Corporation has successfully completed the testing of 5G-A cellular passive IoT technology, marking a significant advancement in the field of Internet of Things (IoT) connectivity [1] Group 1: Company Achievements - ZTE Corporation, under the guidance of the IMT-2020 (5G) Promotion Group, has taken the lead in testing 5G-A cellular passive IoT technology [1] - The testing utilized the 2a class terminal tags from Chiprise Technology, based on the 3GPP R19 Ambient IoT standard [1] - The tests were conducted on a 5G-A cellular passive IoT base station operating in the 900MHz frequency band [1] Group 2: Testing Results - The real-world data from the tests indicated that the success rate for both single tag and multi-tag inventory was consistently at 100% within the effective coverage area [1]

Core Viewpoint - ZTE Corporation has successfully completed testing of 5G-A cellular passive IoT technology under the guidance of the IMT-2020 (5G) Promotion Group, demonstrating a stable 100% success rate in inventory tracking for both single and multiple tags within effective coverage [1] Group 1 - The testing utilized the 2a class terminal tags from Chiprise Technology, based on the 3GPP R19 Ambient IoT standard-defined direct connection architecture [1] - The tests were conducted on a 5G-A cellular passive IoT base station operating in the 900MHz frequency band [1] - The results indicate that the cellular passive IoT system achieved a consistent success rate of 100% for both single and multiple tag inventory tracking within the effective coverage area [1]