Core Viewpoint - The Hang Seng Index rose by 0.92% on December 17, closing at 25,468.78 points, with a net inflow of HKD 79.09 billion through the southbound trading channel [1] Group 1: Market Activity - The total trading volume for the southbound trading on December 17 was HKD 796.24 billion, with a net buy of HKD 79.09 billion [1] - The Shanghai Stock Exchange's southbound trading accounted for HKD 455.02 billion in trading volume, with a net buy of HKD 22.18 billion [1] - The Shenzhen Stock Exchange's southbound trading had a volume of HKD 341.22 billion, resulting in a net buy of HKD 56.91 billion [1] Group 2: Active Stocks - Alibaba-W was the most actively traded stock on the Shanghai Stock Exchange with a trading volume of HKD 30.01 billion, followed by Changfei Optical Fiber and Tencent Holdings with HKD 20.20 billion and HKD 14.40 billion respectively [1] - In terms of net buy amounts, Zijin Mining led with a net buy of HKD 3.58 billion, while China National Offshore Oil Corporation had the highest net sell amount at HKD 3.85 billion [1] - On the Shenzhen Stock Exchange, Alibaba-W also topped the trading volume with HKD 25.57 billion, followed by Tencent Holdings and Xiaomi Group with HKD 20.65 billion and HKD 14.33 billion respectively [2] - Xiaomi Group had the highest net buy amount of HKD 8.89 billion, while China Mobile recorded the largest net sell amount at HKD 5.14 billion [2]

Group 1 - Northbound capital recorded a net purchase of HKD 79.09 billion on December 17, with HK Stock Connect (Shanghai) net buying HKD 22.18 billion and HK Stock Connect (Shenzhen) net buying HKD 56.91 billion [1] - The most net bought stocks included Xiaomi Group-W (01810) with a net purchase of HKD 10.62 billion, Meituan-W (03690), and Southern Hang Seng Technology (03033) [1] - Xiaomi Group plans to invest HKD 200 billion in R&D over the next five years, aiming to become a global leader in hard technology [1] Group 2 - Meituan-W (03690) received a net purchase of HKD 7.5 billion, Alibaba-W (09988) HKD 5.43 billion, Tencent (00700) HKD 4.57 billion, and Kuaishou-W (01024) HKD 1.84 billion [2] - Southern Hang Seng Technology (03033) also saw a net purchase of HKD 7.45 billion, with a general market sentiment of caution among southbound funds, waiting for a more aggressive approach in the new year [2] - Longi Green Energy (06869) had a net purchase of HKD 4.13 billion, with plans to use approximately 80% of the net proceeds from a recent share placement for overseas business development [2] Group 3 - China Life (02628) recorded a net purchase of HKD 3.13 billion, with recent trends in long-term interest rates potentially improving the valuation outlook for listed insurance companies [3] - SMIC (00981) saw a net purchase of HKD 2.17 billion, with recent data showing it is closing the market share gap with Samsung in the semiconductor foundry sector [3] - Zijin Mining (02899) and Industrial and Commercial Bank of China (01398) received net purchases of HKD 3.57 billion and HKD 2.392 million, respectively, while China Mobile (00941) and CNOOC (00883) faced net sales of HKD 5.14 billion and HKD 1.32 billion [3]

Core Insights - On December 17, 2025, Alibaba-W (09988), Changfei Optical Fiber Cable (06869), and Tencent Holdings (00700) were the top three stocks by trading volume in the Southbound Stock Connect, with trading amounts of 30.01 billion, 20.20 billion, and 14.40 billion respectively [1][2] - In the Shenzhen-Hong Kong Stock Connect, Alibaba-W (09988), Tencent Holdings (00700), and Xiaomi Group-W (01810) also led the trading volume, with amounts of 25.57 billion, 20.65 billion, and 14.33 billion respectively [1][2] Southbound Stock Connect (Shanghai-Hong Kong) - Top active companies by trading volume included: - Alibaba-W (09988): 30.01 billion with a net buy of +1.43 billion - Changfei Optical Fiber Cable (06869): 20.20 billion with a net buy of +2.03 billion - Tencent Holdings (00700): 14.40 billion with a net buy of +2.10 billion - Other notable companies included China National Offshore Oil (00883) with 14.35 billion and a net sell of -3.85 billion [2] Southbound Stock Connect (Shenzhen-Hong Kong) - Top active companies by trading volume included: - Alibaba-W (09988): 25.57 billion with a net buy of +4.01 billion - Tencent Holdings (00700): 20.65 billion with a net buy of +2.48 billion - Xiaomi Group-W (01810): 14.33 billion with a net buy of +8.89 billion - Other notable companies included Meituan-W (03690) with 11.13 billion and a net buy of +6.93 billion [2]

Group 1 - Southbound funds net bought Hong Kong stocks worth 7.909 billion HKD today [1] - Notable net purchases include Xiaomi Group-W at 1.063 billion HKD, Meituan-W at 750 million HKD, and Alibaba-W at 543 million HKD [1] - Southbound funds have continuously net bought Xiaomi for 14 days, totaling 13.84687 billion HKD, and Meituan for 6 days, totaling 5.55796 billion HKD [1] Group 2 - Net sales were recorded for China Mobile at 514 million HKD and China National Offshore Oil Corporation at 132 million HKD [1] - Alibaba-W experienced a 1.3% decline with a net purchase of 1.43 billion HKD [3] - Tencent Holdings saw a 1.4% increase with a net purchase of 2.10 billion HKD [3]

Summary of Key Points Core Viewpoint - The Hong Kong stock market saw significant net buying from northbound capital, totaling HKD 79.09 billion, with notable interest in technology stocks and a cautious approach from investors as they await policy changes in the new year [1]. Group 1: Northbound Capital Inflows - Northbound capital recorded a net buying of HKD 79.09 billion, with HKD 22.18 billion from the Shanghai Stock Connect and HKD 56.91 billion from the Shenzhen Stock Connect [1]. - The most purchased stocks included Xiaomi Group-W (01810), Meituan-W (03690), and Southern Hang Seng Technology (03033) [1]. - The largest net sell-offs were seen in China Mobile (00941) and CNOOC (00883) [1]. Group 2: Individual Stock Performance - Alibaba-W (09988) had a net inflow of HKD 15.72 billion, with total transactions of HKD 30.01 billion [2]. - Meituan-W (03690) recorded a net inflow of HKD 4.61 billion, with total transactions of HKD 8.66 billion [3]. - Xiaomi Group-W (01810) saw a net inflow of HKD 10.62 billion, with a future focus on R&D investment of HKD 200 billion over five years [4]. Group 3: Sector Insights - The technology sector, particularly AI-related stocks, is expected to rebound significantly with potential policy catalysts in the new year [5]. - Longi Green Energy (06869) received a net inflow of HKD 4.13 billion, with plans to use proceeds from a new share placement to expand overseas [5]. - China Life (02628) had a net inflow of HKD 3.13 billion, with expectations of valuation recovery due to stabilizing long-term interest rates [6]. Group 4: Market Trends - Semiconductor company SMIC (00981) received a net inflow of HKD 2.17 billion, with its market share closely approaching that of Samsung [7]. - Overall, the top ten foundries saw a revenue increase of 8.1% quarter-over-quarter, indicating a positive trend in the semiconductor industry [7].

Core Viewpoint - The report from Zhongyou Securities indicates that the demand for "Local for local" remains strong, with high capacity utilization rates maintained. [1] Revenue Breakdown - In Q3 2025, the revenue of SMIC is categorized by region, with China, the US, and Eurasia accounting for 86%, 11%, and 3% respectively. [1] - The revenue from the China region saw a quarter-on-quarter increase of 11%, primarily due to accelerated industry chain transitions and increased demand from the domestic market. [1] Capacity Utilization and Guidance - The company's capacity utilization rate reached 95.8% in Q3 2025. [1] - Looking ahead to Q4, despite it being a traditional off-season with a slowdown in customer inventory buildup, the ongoing effects of industry chain transitions are expected to keep the season from being too weak. [1] - The revenue guidance for Q4 is projected to be flat to a 2% increase quarter-on-quarter, with production lines remaining fully loaded. [1] Profitability and Capital Expenditure - The gross margin guidance is set at 18%-20%, consistent with the guidance provided for Q3. [1] - The expected annual capital expenditure is projected to remain flat year-on-year, with an annual expansion of 50,000 12-inch wafers in monthly capacity. [1] - The company maintains a "Buy" rating. [1]

Core Viewpoint - The company has established long-term stable partnerships with leading semiconductor firms and has significantly increased its customer base in the semiconductor sector this year [1] Group 1: Partnerships - The company has formed partnerships with major semiconductor companies including SMIC, SK Hynix, ChangXin Storage, Xiamen United, and Northern Integrated Circuit [1] - The company has added over twenty new semiconductor customers in the current year [1]

Group 1 - The core viewpoint of the article highlights the rise in the semiconductor sector in the Hong Kong stock market, with notable gains from companies like Hua Hong Semiconductor and SMIC [2] Group 2 - Hua Hong Semiconductor experienced an increase of over 2% in its stock price [2] - SMIC saw a nearly 2% rise in its stock price [2]

Group 1 - The semiconductor sector in the Hong Kong stock market experienced a significant surge, with Shanghai Fudan (01385.HK) rising over 3% [1] - Hua Hong Semiconductor (01347.HK) saw an increase of more than 2% [1] - SMIC (00981.HK) and Innoscience Technology (02577.HK) both rose nearly 2% [1]

Group 1 - The "Silicon Peace Declaration" signed by the US and eight allied countries aims to establish a secure and prosperous silicon supply chain, reflecting a shift in US foreign policy from "value-based alliances" to "industrial chain control" in response to China's technological rise [1][3] - The US is concerned about China's rapid advancements in 5G, artificial intelligence, and semiconductor manufacturing, which challenge its long-standing technological dominance. In 2024, China's high-tech industry is projected to account for 19.1% of GDP, a 7.3 percentage point increase since 2019 [3] - The US is forming a "technology security alliance" to create an exclusive cooperation system across the entire supply chain, from key mineral extraction to AI infrastructure deployment, aiming to curb China's technological upgrades [3] Group 2 - China holds a dominant position in the silicon industry, with a projected production of 1.82 million tons of polysilicon in 2024, a 23.6% year-on-year increase, maintaining over 90% of the global market share [4] - The global semiconductor industry has developed an interdependent structure, with China being the largest semiconductor consumer market, accounting for 35% of global demand. A complete "decoupling" from China by US allies could lead to supply chain disruptions and increased costs [6] - China is responding to US strategic containment with a dual approach of "independent innovation + open cooperation," increasing domestic production of semiconductor equipment and attracting foreign investment in high-tech industries, which reached 1.2 trillion yuan in 2024, a 15.3% increase [6]