Market Overview - On December 4, the Hang Seng Index rose by 0.68%, with southbound funds totaling HKD 756.88 billion in trading volume, including HKD 385.84 billion in buying and HKD 371.04 billion in selling, resulting in a net buying amount of HKD 14.80 billion [1] Southbound Trading Activity - The southbound trading through Stock Connect (Shenzhen) had a cumulative trading volume of HKD 293.41 billion, with net buying of HKD 24.81 billion, while the Stock Connect (Shanghai) recorded a cumulative trading volume of HKD 463.47 billion, resulting in a net selling of HKD 10.00 billion [1] Active Stocks - Alibaba-W had the highest trading volume among southbound funds at HKD 53.18 billion, followed closely by Tencent Holdings at HKD 52.71 billion and Xiaomi Group-W at HKD 49.95 billion [1] - The top net buying stocks included the Tracker Fund of Hong Kong (盈富基金) with a net buying amount of HKD 26.06 billion, followed by WuXi Biologics (药明生物) with HKD 3.16 billion and Xiaomi Group-W with HKD 2.32 billion [1] Continuous Net Buying and Selling - Three stocks experienced continuous net buying for more than three days, with Meituan-W leading at six days, followed by Xiaomi Group-W at five days and Xpeng Motors-W at three days. The total net buying amounts were HKD 22.89 billion for Meituan-W, HKD 20.53 billion for Xiaomi Group-W, and HKD 1.67 billion for Xpeng Motors-W [2] - The stocks with the highest net selling included Semiconductor Manufacturing International Corporation (中芯国际) and Tencent Holdings, with total net selling amounts of HKD 34.49 billion and HKD 24.60 billion, respectively [2] Summary of Active Stocks on December 4 - The following table summarizes the active stocks with their trading amounts, net buying/selling, and daily price changes: | Code | Name | Trading Amount (HKD million) | Net Buying (HKD million) | Daily Change (%) | |-------|--------------------|------------------------------|--------------------------|-------------------| | 02800 | Tracker Fund | 284623.16 | 260585.86 | 0.77 | | 02269 | WuXi Biologics | 51978.36 | 31558.31 | 7.09 | | 01810 | Xiaomi Group-W | 499493.94 | 23169.32 | 4.38 | | 09868 | Xpeng Motors-W | 73564.27 | 10257.11 | 1.06 | | 01347 | Hua Hong Semiconductor | 159937.95 | 5363.70 | 3.11 | | 00883 | CNOOC | 47173.84 | 3007.07 | 0.92 | | 09880 | UBTECH Robotics | 73333.99 | 954.58 | 3.66 | | 03690 | Meituan-W | 171510.39 | 856.38 | 2.29 | | 09988 | Alibaba-W | 531828.80 | -117.31 | 0.52 | | 02050 | Sanhua Intelligent Control | 85349.48 | -5657.75 | 7.70 | | 01024 | Kuaishou-W | 54889.05 | -9372.22 | 0.15 | | 00981 | Semiconductor Manufacturing International | 260990.47 | -45829.01 | 3.87 | | 00700 | Tencent Holdings | 527122.94 | -134592.99 | 0.16 |

Core Insights - On December 4, 2025, Tencent Holdings (00700), Alibaba-W (09988), and Xiaomi Group-W (01810) were the top three companies by trading volume in the southbound trading of the Stock Connect, with trading amounts of 3.75 billion, 2.939 billion, and 2.678 billion respectively [1] - In the southbound trading of the Shenzhen-Hong Kong Stock Connect, Alibaba-W (09988), Xiaomi Group-W (01810), and Tencent Holdings (00700) also ranked as the top three, with trading amounts of 2.379 billion, 2.316 billion, and 1.521 billion respectively [1] Southbound Trading Highlights - **Top Active Companies in Southbound Trading (Hong Kong Stock Connect)** - Tencent Holdings (00700): Trading amount of 3.75 billion, net buy of -1.919 billion - Alibaba-W (09988): Trading amount of 2.939 billion, net buy of -70.44 million - Xiaomi Group-W (01810): Trading amount of 2.678 billion, net buy of -562 million - Other notable companies include Yingfu Fund (02800) with a trading amount of 2.342 billion and a net buy of 2.107 billion [2] - **Top Active Companies in Southbound Trading (Shenzhen-Hong Kong Stock Connect)** - Alibaba-W (09988): Trading amount of 2.379 billion, net buy of 69.27 million - Xiaomi Group-W (01810): Trading amount of 2.316 billion, net buy of 794 million - Tencent Holdings (00700): Trading amount of 1.521 billion, net buy of 573 million - Other notable companies include SMIC (00981) with a trading amount of 1.07 billion and a net buy of -79.37 million [2]

Summary of Key Points Core Viewpoint - The Hong Kong stock market experienced significant net inflows from northbound trading, with a total net buy of 14.8 billion HKD on December 4, 2023, indicating strong investor interest in certain stocks while others faced net selling pressure [1]. Group 1: Stock Performance - The top net bought stocks included 盈富基金 (02800) with a net buy of 26.05 billion HKD, 药明生物 (02269) with a net buy of 3.15 billion HKD, and 小米集团-W (01810) with a net buy of 2.31 billion HKD [4][5]. - The stocks with the highest net selling included 腾讯 (00700) with a net sell of 13.45 billion HKD, 中芯国际 (00981) with a net sell of 4.58 billion HKD, and 三花智控 (02050) with a net sell of 5657.75 million HKD [5][6]. Group 2: Market Insights - 中金公司 suggests that the upcoming US-China meetings may support risk assets, recommending an overweight position in Chinese stocks ahead of the meetings [4]. - 浦银国际 expresses optimism for the CXO sector by 2026, citing potential growth in overseas biopharmaceutical financing due to anticipated interest rate cuts [4]. - The semiconductor industry shows divergence, with 华虹半导体 (01347) receiving a net buy of 5363 million HKD, while 中芯国际 (00981) faced significant net selling [5]. Group 3: Company Developments - 小米集团's president announced significant investments in AI, indicating progress beyond expectations in AI models and applications [5]. - 优必选 (09880) signed a strategic cooperation agreement with 卓世科技, aiming for the deployment of 10,000 robots over the next five years [6]. - 中海油 (00883) reported the production commencement of a new oil field project, expecting peak production of approximately 16,900 barrels of oil equivalent per day by 2026 [5].

Market Overview - The Hong Kong stock market showed a rebound in sentiment, with the Hang Seng Technology Index rising by 1.45% to above 5600 points, while the Hang Seng Index increased by 0.68% to 25935 points, and the National Enterprises Index rose by 0.86% to 9106 points [1][2]. Sector Performance - Large technology stocks collectively rose, with notable gains from Xiaomi (over 4%) and Meituan (over 2%). The pharmaceutical sector saw a surge in orders for flu medications, with some stocks in this category performing strongly [2][4]. - The semiconductor sector was active, with companies like Cambrian increasing chip production by three times, leading to a rise in semiconductor stocks [2][9]. - The biopharmaceutical sector experienced significant gains, with WuXi AppTec rising over 9% and other related stocks also showing strong performance due to increased demand for flu medications [6][8]. - The automotive, real estate, and pharmaceutical sectors showed positive movements, while the restaurant and gaming sectors faced declines [3][13][15]. Notable Stocks - Horizon Robotics saw a rise of over 6%, while Xiaomi and Trip.com also reported gains of over 4% and 3%, respectively [4][5]. - In the biopharmaceutical space, WuXi AppTec and other related stocks saw increases of over 8% [6]. - The robotics sector was strong, with companies like CloudMinds and others showing significant gains [7][8]. - The entertainment sector also saw some upward movement, with Lemon Films rising over 5% [11][12]. Capital Flows - Southbound funds recorded a net inflow of 1.48 billion HKD, indicating positive investor sentiment towards Hong Kong stocks [19]. Future Outlook - Analysts predict that the Hong Kong stock market may experience fluctuations in the coming months, with the Hang Seng Index expected to range between 23500 and 30500 points in 2026. Recommendations include buying on dips and focusing on sectors such as technology, high-end manufacturing, and renewable energy [21].

Market Overview - The Hong Kong stock market showed a rebound in sentiment, with the Hang Seng Technology Index rising by 1.45% to above 5600 points, while the Hang Seng Index increased by 0.68% to 25935 points, and the National Enterprises Index rose by 0.86% to 9106 points [1][2]. Sector Performance - Large technology stocks collectively rose, with notable gains from Xiaomi (over 4%) and Meituan (over 2%). The pharmaceutical sector saw a surge, with orders for flu treatment drugs increasing nearly ninefold, leading to strong performance in related stocks [2][4]. - The semiconductor sector was active, with companies like Cambrian aiming to triple chip production, and stocks such as Horizon Robotics and SMIC also showing significant gains [2][9]. - The biopharmaceutical sector experienced substantial growth, with WuXi AppTec rising over 9% and other related stocks also performing well due to increased demand for flu medications [6]. - The robotics sector was strong, with companies like Cloudwalk and Horizon Robotics seeing gains of over 7% [7]. - The entertainment sector showed positive movement, with Lemon Films rising over 5% amid a strong box office performance during the holiday season [11]. Individual Stock Movements - Notable individual stock performances included: - Horizon Robotics: +6.97% [5] - Xiaomi Group: +4.38% [5] - WuXi AppTec: +9.09% [6] - Cloudwalk: +8.67% [8] - Conversely, the restaurant sector faced declines, with Shanghai Xiaonan falling over 4% [13]. Capital Flows - Southbound funds recorded a net inflow of 1.48 billion HKD, with the Hong Kong Stock Connect (Shanghai) showing a net sell of 1 billion HKD and the Hong Kong Stock Connect (Shenzhen) showing a net buy of 2.481 billion HKD [19]. Future Outlook - Analysts predict that the Hong Kong stock market may experience fluctuations, with the Hang Seng Index expected to range between 23500 and 30500 points in 2026. Recommendations include buying on dips and focusing on sectors such as technology, high-end manufacturing, and renewable energy [21].

Core Viewpoint - The CRO sector stocks experienced a significant surge, with notable increases in share prices for companies like WuXi Biologics, King’s Flair International, WuXi AppTec, and Tigermed, driven by strategic developments and positive market outlooks [1] Company Developments - WuXi Biologics announced a strategic cooperation memorandum with the Qatar Free Zone Authority, establishing its first integrated CRDMO center in the Middle East [1] - King’s Flair International, WuXi AppTec, and Tigermed also saw their stock prices rise, indicating a positive market sentiment towards CRO companies [1] Industry Outlook - According to a report from CMB International, the overall orders and performance in the CXO sector are expected to recover significantly by 2025 [1] - The sector is anticipated to maintain a rapid growth rate through 2026, driven by improved financing conditions and an increase in overseas expansion [1] - However, the industry may face challenges due to tightening regulations in the U.S. pharmaceutical sector and increasing difficulties in new drug development, suggesting a potential wave of consolidation and elimination of underperforming companies [1]

Core Viewpoint - The Hong Kong stock market's innovative drug concept stocks are experiencing a continuous rebound, with notable increases in share prices for several companies [1] Group 1: Company Performance - Gilead Sciences-B has seen a rise of over 9% [1] - WuXi Biologics has increased by more than 6% [1] - Other companies such as Rongchang Biopharmaceutical, Innovent Biologics, and I-Mab have also shown upward movement in their stock prices [1]

Group 1 - CRO concept stocks experienced a rapid increase in afternoon trading, with WuXi Biologics (02269) rising by 4.94% to HKD 32.28, Kintor Pharmaceutical (01548) up by 3.8% to HKD 15.01, WuXi AppTec (603259) (02359) increasing by 2.62% to HKD 99.95, and Tigermed (300347) (03347) gaining 1.22% to HKD 38.04 [1] - WuXi Biologics announced a strategic cooperation memorandum with Qatar Free Zones Authority (QFZ) on December 2, aiming to expand its global service network and professional capabilities into the Middle East, establishing its first integrated CRDMO center in the Qatar Free Zone [1] - According to a report from CMB International, the overall orders and performance of the CXO sector are expected to recover significantly by 2025, driven by marginal improvements in downstream financing and an export boom, with the sector likely to maintain rapid performance growth in 2026 [1] Group 2 - The report highlights that despite the positive outlook, the industry may face challenges due to tightening drug-related regulations in the U.S. and increasing difficulties in new drug development, suggesting that industry consolidation may just be beginning [1] - The report emphasizes that leading players in high-growth sectors have a higher long-term certainty, as the industry continues to eliminate outdated capacity and companies [1]

Group 1 - CRO concept stocks experienced a rapid increase in the afternoon, with WuXi Biologics (02269) rising by 4.94% to HKD 32.28, Kintor Pharmaceutical (01548) up by 3.8% to HKD 15.01, WuXi AppTec (02359) increasing by 2.62% to HKD 99.95, and Tigermed (03347) gaining 1.22% to HKD 38.04 [1] - WuXi Biologics announced a strategic cooperation memorandum with the Qatar Free Zones Authority (QFZ) on December 2, aiming to expand its global service network and professional capabilities into the Middle East, establishing its first integrated CRDMO center in the Qatar Free Zone [1] - According to a report from CMB International, the overall orders and performance of the CXO sector are expected to recover significantly by 2025, driven by improved financing conditions and an outbound trend, with the sector likely to maintain rapid performance growth in 2026 [1] Group 2 - The report highlights that despite the positive outlook, the industry may face challenges due to tightening drug-related regulations in the U.S. and increasing difficulties in new drug development, indicating that industry consolidation may just be beginning [1] - The long-term certainty of leading players in high-growth sectors is emphasized, suggesting that there will be a continued elimination of outdated capacity and companies in the industry [1]

Core Viewpoint - The Hong Kong stock market is experiencing a pullback, but there is a counter-trend inflow of funds, particularly into the Hong Kong Technology ETF (159751), which saw a net subscription of 10 million units. The market is expected to continue its upward trend due to strong overall profitability and the scarcity of assets in sectors like the internet, new consumption, and innovative pharmaceuticals, alongside the anticipated interest rate cut by the Federal Reserve in December [1]. Group 1 - The Hong Kong Technology ETF (159751) closely tracks the CSI Hong Kong Stock Connect Technology Index, which selects 50 large-cap, high R&D investment, and high revenue growth technology companies to reflect the overall performance of technology leaders in the Hong Kong Stock Connect [1]. - As of December 3, 2025, the CSI Hong Kong Stock Connect Technology Index (931573) shows mixed performance among its constituent stocks, with Huahong Semiconductor (01347) leading with a 2.40% increase, followed by Gao Wei Electronics (01415) at 1.81%, and BYD Electronics (00285) at 1.28% [1]. - The overall valuation of the Hong Kong stock market remains low despite several months of increases, indicating a high long-term allocation cost-performance ratio [1]. Group 2 - As of November 28, 2025, the top ten weighted stocks in the CSI Hong Kong Stock Connect Technology Index (931573) include Alibaba-W (09988), Tencent Holdings (00700), and SMIC (00981), with these ten stocks accounting for 67.26% of the index [2].