Market Overview - On November 3, the Hang Seng Index rose by 0.97%, with southbound trading totaling HKD 106.78 billion, comprising HKD 56.12 billion in buying and HKD 50.65 billion in selling, resulting in a net inflow of HKD 5.47 billion [1][2] Southbound Trading Details - Southbound trading through the Shenzhen Stock Connect recorded a total of HKD 42.40 billion, with buying at HKD 23.29 billion and selling at HKD 19.12 billion, leading to a net inflow of HKD 4.17 billion [1] - The Shanghai Stock Connect saw total trading of HKD 64.38 billion, with buying at HKD 32.84 billion and selling at HKD 31.54 billion, resulting in a net inflow of HKD 1.30 billion [1] Active Stocks - Alibaba-W had the highest trading volume among southbound stocks, totaling HKD 71.45 billion, followed by SMIC and Xiaomi Group-W with HKD 61.52 billion and HKD 51.07 billion respectively [1] - In terms of net buying, Xiaomi Group-W led with a net inflow of HKD 10.29 billion, with China National Offshore Oil Corporation and China Mobile following with net inflows of HKD 9.93 billion and HKD 4.61 billion respectively [1][2] Net Buying and Selling Trends - A total of 7 stocks experienced net buying, with Xiaomi Group-W and China National Offshore Oil Corporation showing significant net buying trends over the past few days, with Xiaomi Group-W having a total net inflow of HKD 19.13 billion over 4 days [2] - Conversely, SMIC recorded the highest net selling at HKD 13.81 billion, with Alibaba-W and Hua Hong Semiconductor also facing significant net selling of HKD 9.56 billion and HKD 6.28 billion respectively [1][2]

Core Viewpoint - The article discusses the performance of the Kexin 50 ETF (588940) and its major holdings, highlighting a decline in the ETF's opening price and the performance of its constituent stocks [1]. Group 1: ETF Performance - Kexin 50 ETF (588940) opened down by 1.79%, priced at 1.423 yuan [1]. - Since its establishment on May 21, 2025, the fund has achieved a return of 44.60%, while its return over the past month has been -5.12% [1]. Group 2: Major Holdings Performance - Major holdings in the ETF include: - SMIC (中芯国际) down by 1.76% - Haiguang Information (海光信息) down by 1.46% - Cambrian (寒武纪) down by 2.91% - Lanke Technology (澜起科技) down by 1.69% - Zhongwei Company (中微公司) down by 2.28% - United Imaging (联影医疗) down by 0.09% - Kingsoft Office (金山办公) up by 1.12% - Chipone (芯原股份) down by 0.56% - Stone Technology (石头科技) down by 0.01% - Transsion Holdings (传音控股) down by 0.12% [1].

Market Overview - On November 3, the Shanghai Composite Index rose by 0.55%, the Shenzhen Component Index increased by 0.19%, the ChiNext Index went up by 0.29%, and the CSI 300 Index gained 0.27% [1] - Among the tradable A-shares, 3,534 stocks increased, accounting for 65.05%, while 1,801 stocks declined [1] Capital Flow - The main capital experienced a net outflow of 23.944 billion yuan, marking three consecutive trading days of net outflows [1] - The ChiNext saw a net outflow of 7.530 billion yuan, the Sci-Tech Innovation Board had a net outflow of 4.928 billion yuan, and the CSI 300 constituents experienced a net outflow of 9.504 billion yuan [1] Industry Performance - Out of the 28 first-level industries classified by Shenwan, 22 industries saw an increase, with the media and coal industries leading with gains of 3.12% and 2.52%, respectively [1] - The industries with the largest declines were non-ferrous metals and household appliances, which fell by 1.21% and 0.66%, respectively [1] Industry Capital Inflow and Outflow - Nine industries had net capital inflows, with the media industry leading at a net inflow of 2.031 billion yuan and a daily increase of 3.12% [2] - The banking sector followed with a daily increase of 1.33% and a net inflow of 1.831 billion yuan [2] - The non-ferrous metals industry had the largest net outflow, with a decline of 1.21% and a net outflow of 7.054 billion yuan [2] - The electronics industry also saw a significant net outflow of 4.571 billion yuan, with a slight decline of 0.08% [2] Individual Stock Performance - A total of 2,041 stocks experienced net capital inflows, with 808 stocks having inflows exceeding 10 million yuan, and 110 stocks with inflows over 100 million yuan [2] - The stock with the highest net inflow was TBEA, which rose by 10.01% with a net inflow of 1.666 billion yuan [2] - Other notable stocks with significant inflows included Zhaoyi Innovation and Sungrow Power, with net inflows of 1.113 billion yuan and 1.050 billion yuan, respectively [2] - Conversely, 142 stocks had net outflows exceeding 100 million yuan, with Northern Rare Earth, SMIC, and 360 having the largest outflows of 1.182 billion yuan, 1.111 billion yuan, and 973 million yuan, respectively [2]

Core Viewpoint - The founder and general manager of QuanGuo Fund, Wang Guobin, passed away on November 3 due to illness, leading to the appointment of Ren Li as the acting general manager. Wang was recognized as one of the successful value investors in China's A-share market with 30 years of experience in the securities industry [2][5][20]. Company Overview - QuanGuo Fund was established in 2022 and is recognized as the only "personal system" public fund approved that year, with a registered capital of 100 million yuan [8][10]. - The fund has grown significantly, managing a total of 23.787 billion yuan as of September 2023, marking a 48% increase from 16 billion yuan in the same period of 2022 [12]. Leadership Transition - Following Wang Guobin's death, Ren Li, who has nearly 20 years of experience in the financial industry and previously held various positions at Dongfang Securities, has taken over as acting general manager [20]. - Ren Li's leadership will be crucial for QuanGuo Fund to maintain its competitive edge in the public fund market, especially given the challenges faced by "personal system" public funds in brand recognition and channel cooperation [20]. Investment Philosophy and Performance - Wang Guobin emphasized the importance of investing in great companies and growing alongside them, a principle that guided the fund's operations [5]. - The fund's investment strategy focuses on fundamental analysis and thorough research to allocate capital to capable enterprises at reasonable prices [11]. - As of the third quarter of 2025, the fund's mixed fund performance showed a net value growth rate of 45.58%, with significant holdings in sectors such as manufacturing and software [16]. Fund Management and Structure - The fund's management team includes experienced professionals, with the largest fund, QuanGuo XuYuan, managing 19.069 billion yuan, accounting for 80.17% of the total fund size [15]. - The fund's top ten holdings include major companies like CATL, Tencent, and Alibaba, with manufacturing making up 53.23% of the industry allocation [16][18].

Group 1 - Southbound funds net bought Hong Kong stocks worth 5.472 billion HKD today [1] - Notable net purchases include Xiaomi Group-W (1.029 billion HKD), China National Offshore Oil Corporation (CNOOC) (999 million HKD), and China Mobile (461 million HKD) [1] - Significant net sales were observed in SMIC (1.381 billion HKD), Alibaba-W (955 million HKD), and Tencent Holdings (151 million HKD) [1] Group 2 - Southbound funds have net bought Xiaomi for four consecutive days, totaling 1.91269 billion HKD [1] - CNOOC has seen net purchases for three consecutive days, amounting to 1.60304 billion HKD [1] - Tencent has experienced net sales for four consecutive days, totaling 1.99056 billion HKD [1]

Core Insights - On November 3, 2025, Alibaba-W (09988), SMIC (00981), and Xiaomi Group-W (01810) were the top three companies by trading volume in the Southbound Stock Connect, with trading amounts of 3.151 billion, 2.865 billion, and 2.054 billion respectively [1] Group 1: Southbound Trading Activity - Alibaba-W (09988) had a trading amount of 3.151 billion with a net buy of -96.034 million [2] - SMIC (00981) recorded a trading amount of 2.865 billion with a net buy of -1.149 billion [2] - Xiaomi Group-W (01810) achieved a trading amount of 2.054 billion with a net buy of +293 million [2] - Tencent Holdings (00700) had a trading amount of 1.324 billion with a net buy of +401 million [2] - China National Offshore Oil Corporation (00883) also had a trading amount of 1.324 billion with a net buy of +465 million [2] - Hua Hong Semiconductor (01347) reported a trading amount of 1.125 billion with a net buy of -568 million [2] - Pop Mart International (09992) had a trading amount of 750 million with a net buy of +130 million [2] - Sanofi (01530) recorded a trading amount of 718 million with a net buy of +324 million [2] - Innovent Biologics (01801) had a trading amount of 708 million with a net buy of +281 million [2] - CanSino Biologics (09926) achieved a trading amount of 673 million with a net buy of +373 million [2]

Group 1 - Xiaomi Group has seen a net buy of HKD 1.029 billion, with a total of HKD 19.1269 billion net bought over four consecutive days [1] - CNOOC reported a net buy of HKD 0.993 billion, totaling HKD 16.0304 billion net bought over three consecutive days [1] - Tencent Holdings experienced a net sell of HKD 1.51 billion, with a total of HKD 19.9056 billion net sold over four consecutive days [1] Group 2 - Xiaomi's automotive division announced that it will deliver over 40,000 vehicles by October 2025, with a significant reduction in delivery times due to increased production capacity [3] - CNOOC's Q3 revenue reached CNY 104.895 billion, a year-on-year increase of 5.7%, while net profit decreased by 12.2% [3] - China Mobile, along with China Unicom and China Telecom, has received approval to conduct commercial trials for eSIM mobile services, which are expected to enhance user communication needs and provide opportunities for domestic software and systems [4]

Core Insights - The Hong Kong stock market saw a net inflow of 54.72 billion HKD from northbound trading on November 3, with 13.04 billion HKD from the Shanghai Stock Connect and 41.68 billion HKD from the Shenzhen Stock Connect [1] Group 1: Stock Performance - The most net bought stocks included Xiaomi Group-W (01810), CNOOC (00883), and China Mobile (00941) [1] - The most net sold stocks were SMIC (00981), Alibaba-W (09988), and Hua Hong Semiconductor (01347) [1] Group 2: Individual Stock Analysis - Xiaomi Group-W (01810) received a net inflow of 10.29 billion HKD, with Citigroup estimating that its electric vehicle deliveries exceeded 40,000 units in October, bringing the year-to-date total to over 308,000 units, achieving 88% of its 2025 target of 350,000 units [5] - CNOOC (00883) saw a net inflow of 9.93 billion HKD, with OPEC+ announcing a production increase of 137,000 barrels per day in December, while also planning to pause production increases from January to March next year [5] - Kangfang Biopharma (09926) had a net inflow of 3.72 billion HKD, as its dual-specific antibody drug was included in the breakthrough therapy designation list, accelerating its clinical development [6] - Three-Sixty Biopharma (01530) received a net inflow of 3.25 billion HKD, with Pfizer starting two global Phase III clinical trials for its dual-specific antibody [6] - Innovent Biologics (01801) had a net inflow of 2.96 billion HKD, reporting a 40% year-on-year increase in total product revenue for Q3 2025 and forming a global strategic partnership with Takeda Pharmaceutical [7] Group 3: Market Trends - There is a continued reduction in holdings of semiconductor stocks, with SMIC (00981) and Hua Hong Semiconductor (01347) experiencing net outflows of 1.38 billion HKD and 628 million HKD, respectively [7] - China Mobile (00941) and Pop Mart (09922) received net inflows of 461 million HKD and 52.96 million HKD, respectively, while Tencent (00700) and Alibaba-W (09988) faced net outflows of 151 million HKD and 955 million HKD [7]

Group 1 - Southbound funds recorded a net purchase of 54.72 billion HKD today [1] - Xiaomi Group, China National Offshore Oil Corporation, and China Mobile received net purchases of 10.29 billion HKD, 9.93 billion HKD, and 4.61 billion HKD respectively [1] - SMIC (Semiconductor Manufacturing International Corporation) had the highest net sell-off, amounting to 13.81 billion HKD [1]

Investment Rating - The report maintains a "Recommended" investment rating for the semiconductor and semiconductor production equipment industry [7]. Core Insights - The overseas AI chip index increased by 6.1% this week, driven by strong demand for computing chips due to ongoing AI infrastructure development. Notable stock price increases were observed for Nvidia (up 8.7%) and Marvell (up 11.4%) [1]. - The domestic AI chip index fell by 7.1%, with significant declines in stocks such as Hengxuan Technology (down 12.3%) and Cambricon (down nearly 10%) [1]. - The server ODM index rose by 7.0%, with Supermicro and Hon Hai Precision both seeing gains of over 7% [1]. - The storage chip index increased by 2.7%, indicating a continued improvement in the overall storage market [1]. - The power semiconductor index decreased by 3.8%, reflecting a lack of clear growth in this segment [1]. Market Index - The overseas AI chip index rose by 6.12% this week, while the domestic A-share chip index fell by 7.1% [10]. - The Nvidia mapping index continued to rise by 3.6%, influenced by strong demand for AI chips [11]. - The domestic storage chip index increased by 2.7%, with a notable rise in storage chip prices [15]. Industry Data - In Q3 2025, global smartphone shipments reached 320 million units, a year-on-year increase of 3%. Samsung led with 60.6 million units shipped, followed by Apple with 56.5 million units [2][23]. - Global PC shipments increased by 8.1% in Q3 2025, driven by the end of Windows 10 support and inventory adjustments related to U.S. import tariffs [27][28]. Major Events - Changxin Storage has begun mass production of high-end LPDDR5X memory chips for smartphones and laptops, achieving speeds of 10667 Mbps [3][31]. - Samsung's HBM3E has been shipped to Nvidia customers, with all HBM production capacity for 2026 already sold out [3][32]. - Apple reported Q4 2025 revenue of $102.466 billion, an 8% year-on-year increase, with net profit rising 86% [3][34].