Core Viewpoint - The Hong Kong stock market is experiencing a downturn, with the Hang Seng Technology Index declining significantly, while innovative pharmaceutical stocks are performing well amidst a broader market weakness [1][2]. Group 1: Market Performance - On October 31, the three major indices in Hong Kong fell, with the Hang Seng Technology Index seeing an afternoon drop of 2% [1]. - Technology stocks broadly declined, while innovative pharmaceutical stocks rose against the trend [1]. - The semiconductor sector weakened, with major stocks like Hua Hong Semiconductor and SMIC experiencing significant declines of over 7% and 5%, respectively [1]. Group 2: Economic Outlook - According to recent research from China Merchants Securities, the combination of the Federal Reserve's interest rate cuts and an unexpected end to balance sheet reduction is favorable for global risk assets [1]. - Despite hawkish comments from Powell increasing uncertainty around the rate cut path, the trend towards easing is clear, suggesting that current market dips may present buying opportunities [1]. - The institution anticipates a 25 basis point rate cut in December and three additional cuts in the following year, which is more aggressive than market expectations [1]. Group 3: Investment Recommendations - The institution believes that the dual easing policies from the US and China will benefit risk assets, with Hong Kong stocks expected to enter a "slow bull" market due to strong foreign capital inflows [2]. - The Hang Seng Technology Index ETF is currently valued at 23.50 times earnings, which is approximately 32.84% below historical averages, indicating a safety margin for investors [2]. - The report suggests focusing on leading internet technology companies, high-end manufacturing related to AI, AI-related power sectors, and selectively investing in innovative pharmaceutical stocks [2].

Group 1 - The Hong Kong stock market experienced a decline on October 31, with the Hang Seng Technology Index dropping over 1.5% in the afternoon session, driven by widespread losses in tech stocks and weakness in the semiconductor sector [1] - The Hang Seng Technology Index ETF (513180) followed the index's downward trend, with leading stocks such as Kingdee International, Kingsoft, and Haier Smart Home performing well, while stocks like Hua Hong Semiconductor, SMIC, BYD, Alibaba, Kuaishou, and Tencent Holdings faced significant declines, with Hua Hong Semiconductor dropping over 7% in the afternoon [1] - According to Huaxi Securities, the global market is currently in a "vacuum period" following the US-China leaders' meeting, and the market is under pressure due to the lack of decisions from the Federal Reserve regarding the December meeting, alongside a strengthening US dollar [1] Group 2 - The Hang Seng Technology Index has seen a moderate increase of 37.49% since April 8, which is comparable to the 37.85% increase of the Wind All A Index, despite a significant pullback in October [1] - The current valuation of the Hang Seng Technology Index ETF (513180) is at 23.50 times P/E ratio, which is at a valuation percentile of approximately 32.84%, indicating that it is lower than 70% of its historical valuation period, suggesting a certain margin of safety for investors [2] - Investors without a Hong Kong Stock Connect account may consider using the Hang Seng Technology Index ETF (513180) to gain exposure to core AI assets in China [2]

Core Viewpoint - The Hang Seng Index closed at 26,050.08 points, down 0.89%, while the Hang Seng Tech Index fell by 1.91% to 5,936.39 points, indicating a bearish trend in the market [1] Group 1: Market Performance - The Hang Seng Index experienced a decline of 0.89% [1] - The Hang Seng Tech Index saw a decrease of 1.91% [1] Group 2: Sector Performance - Innovative drug concept stocks showed strong performance, with 3SBio rising over 10% and Innovent Biologics increasing nearly 7% [1] - Chip stocks generally fell, with Hua Hong Semiconductor dropping nearly 7%, SMIC declining over 5%, and Shanghai Fudan decreasing nearly 5% [1]

Group 1 - The semiconductor sector in Hong Kong experienced a decline, with major companies like SMIC and Hua Hong Semiconductor dropping over 4% [2] - The semiconductor index fell by 3.88%, closing at 5309.924, down 214.057 points [3] - The trading volume was 28.927 million, with a total transaction value of 2.219 billion [3] Group 2 - The "14th Five-Year Plan" aims to accelerate breakthroughs in the entire semiconductor industry chain, focusing on developing new model algorithms and high-performance computing chips [4] - The domestic chip localization rate is expected to increase from 10% in October 2021 to 18% by 2024, with AI chip penetration projected at around 30% for Chinese brands [4] - There is a significant demand for domestic alternatives in CPU, GPU, analog chips, storage chips, and automotive chips due to external restrictions and the clear guidance of the "14th Five-Year Plan" [4]

每经AI快讯，10月31日，港股半导体股盘初走弱，华虹半导体、中芯国际跌超4%，上海复旦跌超3%。 每日经济新闻 ...

Core Insights - The article highlights the net inflow and outflow of capital for various companies in the Hong Kong stock market, indicating significant movements in investor sentiment towards specific stocks [1][2][3] Net Inflow Summary - Semiconductor companies such as SMIC (中芯国际) and Tencent Holdings (腾讯控股) led the market with net inflows of 1.132 billion and 1.028 billion respectively, reflecting strong investor interest [1][2] - Huahai Semiconductor (华虹半导体) also saw a notable net inflow of 985 million, with a net inflow ratio of 14.94% [2] - Other companies with significant net inflows include China National Offshore Oil (中国海洋石油) at 633 million and Pop Mart (泡泡玛特) at 485 million [2] Net Outflow Summary - Alibaba (阿里巴巴-W) experienced the highest net outflow at -1.987 billion, indicating a negative shift in investor confidence [1][2] - Li Auto (理想汽车-W) and the Tracker Fund of Hong Kong (盈富基金) followed with net outflows of -813 million and -647 million respectively [1][2] - Other notable outflows included Dongfang Electric (东方电气) at -285 million and CSPC Pharmaceutical (石药集团) at -280 million [2] Net Inflow Ratio Summary - The top three companies by net inflow ratio were Huaxia Heng ESG (华夏恒ESG) at 62.50%, GX Hang Seng Technology (GX恒生科技) at 61.19%, and China Overseas Grand Oceans Group (中国海外宏洋集团) at 55.15% [1][3] - Other companies with high net inflow ratios included New Hope Liuhe (新奥能源) at 52.69% and Qingdao Bank (青岛银行) at 52.44% [3] Net Outflow Ratio Summary - Companies with the highest net outflow ratios included China International Marine Containers (中集集团) at -60.95%, followed by Times Electric (时代电气) at -51.77% and Shanghai Pharmaceuticals (上海医药) at -49.87% [1][3] - Additional companies with significant outflow ratios were Fuyao Glass (福莱特玻璃) at -49.46% and China Education Group (中教控股) at -49.29% [3]

Market Overview - On October 30, the Hang Seng Index fell by 0.24% with a total southbound trading volume of HKD 152.84 billion, including HKD 83.24 billion in buying and HKD 69.60 billion in selling, resulting in a net buying amount of HKD 13.64 billion [1][2] - The southbound trading through Stock Connect (Shenzhen) had a total trading volume of HKD 60.21 billion, with net buying of HKD 7.03 billion, while the trading through Stock Connect (Shanghai) had a total trading volume of HKD 92.63 billion, with net buying of HKD 6.61 billion [1] Active Stocks - The most actively traded stock by southbound funds was Alibaba-W, with a total trading amount of HKD 110.61 billion, followed by SMIC and Tencent Holdings with trading amounts of HKD 90.40 billion and HKD 55.25 billion respectively [1][2] - The net buying stocks included eight companies, with the largest net buying amount in the Tracker Fund of Hong Kong (盈富基金) at HKD 46.33 billion, despite a closing price drop of 0.11% [1][2] - Other notable net buying amounts were Alibaba-W at HKD 8.76 billion and Meituan-W at HKD 8.06 billion [1] Continuous Net Buying - Two stocks experienced continuous net buying for more than three days, with SMIC and Huahong Semiconductor having net buying days of seven and four respectively [2] - The total net buying amount for SMIC was HKD 30.44 billion, while Huahong Semiconductor had a net buying amount of HKD 19.22 billion [2]

Market Overview - On October 30, the Hang Seng Index fell by 0.24%, closing at 26,282.69 points, while southbound funds through the Stock Connect recorded a net purchase of HKD 13.641 billion [1] Trading Activity - The total trading volume for the Stock Connect on October 30 was HKD 152.837 billion, with a net purchase of HKD 13.641 billion. Specifically, the Shanghai Stock Connect had a trading volume of HKD 92.627 billion and a net purchase of HKD 6.612 billion, while the Shenzhen Stock Connect had a trading volume of HKD 60.210 billion and a net purchase of HKD 7.030 billion [1] Active Stocks - In the Shanghai Stock Connect, Alibaba-W had the highest trading volume at HKD 64.51 billion, followed by SMIC and Tencent Holdings with trading volumes of HKD 52.19 billion and HKD 32.90 billion, respectively. In terms of net buying, the Yingfu Fund led with a net purchase of HKD 2.930 billion, while Alibaba-W had the highest net selling at HKD 0.386 billion [1][2] Shenzhen Stock Connect Highlights - In the Shenzhen Stock Connect, Alibaba-W also topped the trading volume with HKD 46.11 billion, followed by SMIC and Xiaomi Group with HKD 38.20 billion and HKD 24.08 billion, respectively. The Yingfu Fund recorded a net purchase of HKD 1.703 billion, while SMIC had the highest net selling at HKD 0.537 billion [2]

Group 1 - Southbound funds net bought Hong Kong stocks worth 13.641 billion HKD today [1] - The top net purchases included: - Tracker Fund of Hong Kong (46.33 million HKD) - Alibaba Group (8.75 million HKD) - Meituan (8.05 million HKD) - Hang Seng China Enterprises Index (7.72 million HKD) - CNOOC (5.74 million HKD) - Hua Hong Semiconductor (4.69 million HKD) - Xiaomi Group (2.01 million HKD) [1] - The top net sales included: - ZTE Corporation (3.23 million HKD) - Ganfeng Lithium (3.06 million HKD) - Tencent Holdings (2.64 million HKD) - Innovent Biologics (1.72 million HKD) [1] Group 2 - Southbound funds have net bought SMIC for 7 consecutive days, totaling 30.4402 million HKD [1] - Southbound funds have net bought Hua Hong Semiconductor for 4 consecutive days, totaling 19.2152 million HKD [1]

Core Insights - On October 30, 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 6.451 billion, 5.219 billion, and 3.290 billion respectively [1][2] - In the southbound trading of the Shenzhen-Hong Kong Stock Connect, Alibaba-W (09988), SMIC (00981), and Xiaomi Group-W (01810) also ranked as the top three, with trading amounts of 4.611 billion, 3.820 billion, and 2.408 billion respectively [1][2] Southbound Trading Highlights - **Top Active Companies in Southbound Trading (Shanghai-Hong Kong)** - Alibaba-W (09988): Trading amount of 6.451 billion, net buy of -0.386 billion - SMIC (00981): Trading amount of 5.219 billion, net buy of +0.563 billion - Tencent Holdings (00700): Trading amount of 3.290 billion, net buy of -0.310 billion - Meituan-W (03690): Trading amount of 3.203 billion, net buy of +0.535 billion - Xiaomi Group-W (01810): Trading amount of 3.070 billion, net buy of +0.456 billion [2] - **Top Active Companies in Southbound Trading (Shenzhen-Hong Kong)** - Alibaba-W (09988): Trading amount of 4.611 billion, net buy of +1.261 billion - SMIC (00981): Trading amount of 3.820 billion, net buy of -0.537 billion - Xiaomi Group-W (01810): Trading amount of 2.408 billion, net buy of -0.254 billion - Tencent Holdings (00700): Trading amount of 2.234 billion, net buy of +0.046 billion - Huahong Semiconductor (01347): Trading amount of 2.094 billion, net buy of +0.613 billion [2]