Core Insights - On August 27, SenseTime-W made its debut on the Hong Kong Stock Connect active trading list for the first time in a month [1] - The total trading volume of active stocks on the Hong Kong Stock Connect reached HKD 565.00 billion, accounting for 29.55% of the day's total trading amount, with a net buying amount of HKD 134.39 billion [1] - Among the active stocks, SMIC had the highest trading volume at HKD 121.55 billion, followed by Alibaba-W and Tencent Holdings with trading volumes of HKD 78.33 billion and HKD 62.70 billion, respectively [1] Trading Activity Summary - The most frequently listed stocks in the past month were Alibaba-W and Tencent Holdings, each appearing 23 times, indicating strong interest from Hong Kong Stock Connect investors [1] - SenseTime-W recorded a trading volume of HKD 31.58 billion on its first appearance, with a net selling amount of HKD 0.86 billion, and closed the day with an increase of 8.90% [1] Active Stocks Overview - The following table summarizes the trading activity of the top active stocks on August 27: | Stock Code | Stock Name | Trading Amount (billion HKD) | Net Buying Amount (billion HKD) | Recent Listings | Latest Closing Price (HKD) | Daily Change (%) | |------------|------------------|-------------------------------|----------------------------------|------------------|----------------------------|-------------------| | 01810 | Xiaomi Group | 51.06 | -2.97 | 23 | 53.200 | -0.56 | | 00700 | Tencent Holdings | 62.70 | 0.41 | 23 | 599.000 | -1.72 | | 00981 | SMIC | 121.55 | -6.59 | 23 | 56.250 | 0.09 | | 09988 | Alibaba-W | 78.33 | 21.78 | 23 | 121.500 | 0.16 | | 03690 | Meituan-W | 43.88 | 17.83 | 19 | 116.300 | -3.08 | | 02800 | Tracker Fund | 56.61 | 55.50 | 16 | 25.700 | -1.23 | | 01347 | Hua Hong Semiconductor | 35.22 | 3.59 | 13 | 52.750 | -0.85 | | 02828 | Hang Seng China Enterprises | 32.06 | 30.43 | 11 | 92.300 | -1.28 | | 03033 | Southern Hang Seng Technology | 10.02 | 9.54 | 11 | 5.595 | -1.41 | | 09926 | CanSino Biologics | 41.98 | 5.74 | 9 | 157.000 | -7.10 | | 00020 | SenseTime-W | 31.58 | -0.86 | 1 | 2.080 | 8.90 | [1]

Group 1 - Semiconductor stocks in Hong Kong continued their recent momentum, with Shanghai Fudan rising by 7.68%, SMIC by 7.02%, Hua Hong Semiconductor by 4.27%, and Jingmen Semiconductor by 4% [1][2] - According to TrendForce, the proportion of imported chips in China's AI server market is expected to decrease from 63% in 2024 to 42% by 2025, while domestic chip suppliers' share is projected to rise to 40%, indicating a trend towards domestic substitution [2] - The Chinese government recently issued opinions on the implementation of the "Artificial Intelligence +" initiative, emphasizing the integration of AI-driven technology research and development, which is expected to benefit the semiconductor and domestic computing sectors [3] Group 2 - Shanghai Fudan reported a revenue of 1.839 billion yuan for the first half of 2025, a year-on-year increase of 2.49%, but net profit fell by 44.38% to 194 million yuan [4] - Despite the decline in profit, Shanghai Fudan's stock price surged, reaching an intraday increase of nearly 11% [4]

Group 1 - Semiconductor stocks experienced a rise in early trading, with Shanghai Fudan up 6.88% at HKD 37.3, SMIC up 5.6% at HKD 59.4, Jingmen Semiconductor up 4% at HKD 0.52, and Huahong Semiconductor up 2.56% at HKD 54.1 [1] - According to TrendForce, the proportion of foreign-sourced chips from companies like Nvidia and AMD in China's AI server market is expected to decrease from 63% in 2024 to 42% by 2025, while domestic chip suppliers' share is projected to rise to 40% [1] - Tianfeng Securities believes that the semiconductor, domestic computing power, and self-controllable sectors will remain long-term trends, especially amid ongoing uncertainties in US-China trade policies regarding AI computing power chips [1] Group 2 - Domestic large model development companies and internet platforms are expected to gradually increase their procurement and usage of domestic chips, creating growth opportunities for domestic chip suppliers and their supporting industry chain [1]

Core Viewpoint - Semiconductor stocks experienced a significant rise, indicating positive market sentiment and potential growth in the sector driven by domestic chip suppliers and AI server market trends [1] Group 1: Stock Performance - Shanghai Fudan (01385) increased by 6.88%, reaching HKD 37.3 - SMIC (00981) rose by 5.6%, trading at HKD 59.4 - Jingmen Semiconductor (02878) saw a 4% increase, priced at HKD 0.52 - Huahong Semiconductor (01347) gained 2.56%, with a price of HKD 54.1 [1] Group 2: Market Trends - According to TrendForce, the proportion of foreign-sourced chips in China's AI server market is expected to decrease from 63% in 2024 to 42% by 2025 - Domestic chip suppliers are projected to increase their market share to 40%, indicating a strong trend towards domestic substitution [1] Group 3: Industry Outlook - Tianfeng Securities emphasizes that the semiconductor, domestic computing power, and self-controllable sectors will remain long-term trends - In light of ongoing uncertainties in US-China trade policies regarding AI computing chips, domestic model development companies and internet platforms are expected to gradually increase their procurement and usage of domestic chips - This shift is likely to create development opportunities for domestic chip suppliers and their supporting industry chain [1]

Market Overview - On August 27, the Hang Seng Index fell by 1.27%, closing at 25,201.76 points, while southbound funds through the Stock Connect recorded a net purchase of HKD 15.371 billion [1][2] Trading Activity - The total trading volume for the Stock Connect on August 27 was HKD 191.172 billion, with a net purchase of HKD 15.371 billion [1] - The Shanghai Stock Connect had a trading volume of HKD 118.378 billion and a net purchase of HKD 9.005 billion, while the Shenzhen Stock Connect had a trading volume of HKD 72.794 billion and a net purchase of HKD 6.366 billion [1] Active Stocks - In the Shanghai Stock Connect, the most actively traded stock was SMIC, with a trading volume of HKD 6.799 billion, followed by Alibaba and Tencent, with trading volumes of HKD 4.360 billion and HKD 4.078 billion, respectively [1][2] - In terms of net buying, the top stock was the Tracker Fund of Hong Kong (盈富基金), with a net purchase of HKD 3.056 billion, despite its closing price dropping by 1.23% [1] - SMIC recorded the highest net selling amount of HKD 586 million, while its closing price increased by 0.09% [1][2] Shenzhen Stock Connect Highlights - In the Shenzhen Stock Connect, SMIC also led in trading volume with HKD 5.356 billion, followed by Alibaba and the Tracker Fund of Hong Kong, with trading volumes of HKD 3.473 billion and HKD 2.502 billion, respectively [2] - The Tracker Fund of Hong Kong had a net purchase of HKD 2.494 billion, while Xiaomi Group recorded the highest net selling amount of HKD 300 million, with its closing price down by 0.56% [2]

Group 1 - Southbound funds traded approximately HKD 191.17 billion today, an increase of nearly HKD 43 billion compared to the previous day, accounting for 51.48% of the total turnover of the Hang Seng Index [2] - Despite the decline in Hong Kong stocks, southbound funds significantly increased their positions, with a net purchase of approximately HKD 15.37 billion, including a net inflow of about HKD 9.00 billion from the Shanghai-Hong Kong Stock Connect and HKD 6.37 billion from the Shenzhen-Hong Kong Stock Connect [2] - Major ETFs such as the Tracker Fund of Hong Kong, Hang Seng China Enterprises Index ETF, and Southern Hang Seng Technology ETF saw substantial inflows of HKD 5.55 billion, HKD 3.04 billion, and HKD 0.95 billion respectively [2] Group 2 - Individual stocks with significant net purchases included Alibaba Group (HKD 2.18 billion), Meituan (HKD 1.78 billion), and CanSino Biologics (HKD 0.57 billion) [3] - Stocks with notable net outflows included SMIC (HKD 0.66 billion) and Xiaomi Group (HKD 0.30 billion) [3] Group 3 - Alibaba Group's stock rose by 0.16%, with short-term fund trends remaining unclear, having reduced holdings by 1.54 million shares over the past five days [4] - Meituan's stock fell by 3.08%, but short-term funds accelerated inflows, increasing holdings by 24.10 million shares over the past five days [4] - CanSino Biologics' stock dropped by 7.10%, with short-term fund trends remaining unclear, having reduced holdings by 90,000 shares over the past five days [4] - SMIC's stock rose by 0.09%, with short-term funds primarily flowing in, having increased holdings by 4.22 million shares over the past five days [4] - Xiaomi Group's stock fell by 0.56%, with short-term fund inflows slowing down, having increased holdings by 2.53 million shares over the past five days [4] Group 4 - In the past month, the top active stocks in the Shanghai-Hong Kong Stock Connect included SMIC, Alibaba Group, and Tencent Holdings, with net outflows of HKD 0.59 billion, HKD 1.14 billion, and HKD 0.54 billion respectively [6] - In the Shenzhen-Hong Kong Stock Connect, the top active stocks included SMIC, Alibaba Group, and the Tracker Fund of Hong Kong, with net outflows of HKD 0.72 billion, HKD 1.04 billion, and HKD 2.49 billion respectively [7]

Core Insights - The Hong Kong stock market saw a net inflow of 15.371 billion HKD from northbound trading on August 27, with the Shanghai-Hong Kong Stock Connect contributing 9.005 billion HKD and the Shenzhen-Hong Kong Stock Connect contributing 6.366 billion HKD [1] Group 1: Stock Performance - The most bought stocks by northbound funds were the Tracker Fund of Hong Kong (02800), Hang Seng China Enterprises (02828), and Alibaba-W (09988) [1] - The most sold stocks included Semiconductor Manufacturing International Corporation (00981) and Xiaomi Group-W (01810) [1] - Semiconductor Manufacturing International Corporation had a net outflow of 5.86 billion HKD, while Alibaba-W saw a net inflow of 11.35 billion HKD [2] Group 2: Sector Trends - Northbound funds continued to favor Hong Kong ETFs, with significant net purchases in the Tracker Fund of Hong Kong (55.49 billion HKD), Hang Seng China Enterprises (30.43 billion HKD), and Southern Hang Seng Technology (9.53 billion HKD) [4] - The AI sector received attention following the Chinese government's announcement on implementing "AI+" initiatives, which is expected to boost demand across the AI industry [5] - The chip sector showed mixed results, with Huahong Semiconductor (01347) receiving a net inflow of 3.58 billion HKD, while Semiconductor Manufacturing International Corporation faced a net outflow of 6.58 billion HKD [6] Group 3: Company-Specific Developments - Kangfang Bio (09926) reported a revenue increase of 37.75% year-on-year, driven by new product approvals and inclusion in the national medical insurance directory [5] - Xiaomi Group-W faced a net outflow of 2.97 billion HKD, with concerns over demand momentum due to the anticipated cessation of subsidies in late 2025 [7]

Group 1 - Goldman Sachs maintains a "Neutral" rating on Hua Hong Semiconductor (01347) as there is no upward potential relative to the target price [1] - The firm has revised down its earnings forecasts for 2025 to 2029 by 33%, 11%, 4%, 2%, and 2% respectively, while increasing operating expense forecasts by 8%, 5%, 1%, 1%, and 1% [1] - The target price has been raised from HKD 46.9 to HKD 53.4, corresponding to a projected price-to-earnings ratio of 45.4 times for the next year [1] Group 2 - The long-term outlook for Hua Hong Semiconductor is positive due to increasing domestic localization demand, high capacity utilization, and ongoing expansion plans [1] - Short-term catalysts include continued capacity expansion plans and high capacity utilization supporting a recovery in average selling prices, which could support the company's stock price [1]

Core Viewpoint - Goldman Sachs maintains a "Neutral" rating on Hua Hong Semiconductor (01347) due to a lack of upside potential relative to the target price, while adjusting profit forecasts downward for 2025 to 2029 by 33%, 11%, 4%, 2%, and 2% respectively [1] Financial Projections - Operating expense forecasts have been raised by 8%, 5%, 1%, 1%, and 1% for the same period [1] - The target price has been increased from HKD 46.9 to HKD 53.4, implying a projected price-to-earnings ratio of 45.4 times for the next year [1] Long-term Potential - The company is viewed positively in the long term due to increasing domestic localization demand, high capacity utilization rates, and ongoing expansion plans [1] - Future plans include transitioning from 40nm to 28nm process technology [1] Short-term Catalysts - Expected short-term catalysts include continued capacity expansion plans and high capacity utilization supporting a recovery in average selling prices, which could support the company's stock price [1]

Group 1 - Semiconductor stocks continue their recent upward trend, with notable increases in share prices: SMIC (00981) up 5.52% to HKD 59.3, Jingmen Semiconductor (02878) up 4% to HKD 0.52, Fudan Shanghai (01385) up 2.66% to HKD 34.7, and Huahong Semiconductor (01347) up 2.26% to HKD 54.4 [1] - Deepseek officially released the DeepSeek-V3.1 version, which utilizes UE8M0 FP8 Scale parameter precision, designed for the upcoming generation of domestic chips, indicating potential for large-scale application of domestic chips [1] - Dongfang Securities highlights that the new generation of domestic chips is beginning to support FP8, including models like Muxi 690, Chip Origin VIP9000, Cambricon 690, Moore Thread MUSA 3.1 GPU, and Haiguang Deep Computing No. 3 [1] Group 2 - The firm believes that with advancements in domestic AI chip design technology and manufacturing processes, along with the ongoing development of domestic large models and their compatibility with domestic chips, the market share of domestic computing power is expected to continue increasing [1] - The ongoing bullish trend in domestic chips is anticipated to persist, driven by improvements in technology and market dynamics [1]