Core Insights - On January 13, 2026, Alibaba-W (09988), Tencent Holdings (00700), and Xiaomi Group-W (01810) were the top three companies by trading volume in the Southbound Stock Connect, with trading amounts of 81.05 billion, 29.45 billion, and 28.57 billion respectively [1] - The same companies also led in trading volume in the Shenzhen-Hong Kong Stock Connect, with trading amounts of 58.01 billion, 23.48 billion, and 21.05 billion respectively [1] Southbound Stock Connect (Shanghai-Hong Kong) - Alibaba-W (09988) had a trading amount of 81.05 billion and a net buy amount of -90.46 million [2] - Tencent Holdings (00700) recorded a trading amount of 29.45 billion with a net buy amount of +6.61 million [2] - Xiaomi Group-W (01810) achieved a trading amount of 28.57 billion and a net buy amount of +3.24 billion [2] - Other notable companies included Goldwind Technology (02208) with 23.07 billion and a net buy of +85.70 million, and SMIC (00981) with 22.72 billion and a net buy of -1.73 billion [2] Southbound Stock Connect (Shenzhen-Hong Kong) - Alibaba-W (09988) had a trading amount of 58.01 billion and a net buy amount of +1.16 billion [2] - Tencent Holdings (00700) recorded a trading amount of 23.48 billion with a net buy amount of +749 million [2] - Xiaomi Group-W (01810) achieved a trading amount of 21.05 billion and a net buy amount of +283 million [2] - Other significant companies included SMIC (00981) with 18.13 billion and a net buy of -661 million, and Kuaishou-W (01024) with 12.21 billion and a net buy of +114 million [2]

Group 1 - The core point of the article is that Xiaohongshu has partnered with Meituan to launch a new initiative allowing users to directly access Meituan's pharmaceutical offerings through Xiaohongshu's advertising notes [1] - The first phase of this collaboration includes the integration of Meituan's pharmaceutical industry line, enabling brands like Kuaike, Xiaokuihua, and Fenbide to advertise on Xiaohongshu [1] - This partnership marks the first time an instant retail platform has joined Xiaohongshu's advertising initiatives, following previous collaborations with e-commerce platforms like Taobao and JD [2]

Group 1 - The core idea of the news is the collaboration between Xiaohongshu and Meituan, allowing users to purchase medicine directly through Xiaohongshu's advertising notes, enhancing the efficiency of online medicine sales [1] - Xiaohongshu has launched the "Hongmei Plan" with Meituan, marking the first instant retail platform to join after similar agreements with Taobao and JD.com [1] - The "Hongmei Plan" has seen initial success with brands like "Kuaike," "Xiaokuihua," and "Fenbide," leading to a 42% increase in search volume on Xiaohongshu and a 33% reduction in order costs compared to industry averages [1] Group 2 - During the 2025 Double Eleven shopping festival, the number of brands participating in the "Zhongcao Direct" program doubled compared to the 618 shopping festival, with over 1,000 products achieving sales of over one million yuan on platforms like Taobao and JD.com [2] - The "Zhongcao Direct" feature, launched in September 2025, significantly improves the efficiency of brand advertising, with a 76% increase in store entry efficiency when combined with traditional advertising methods [1]

Core Insights - Xiaohongshu has partnered with Meituan to launch the "Hongmei Plan," allowing Meituan merchants to advertise on Xiaohongshu with direct links for instant retail [1][2] - This initiative marks the first collaboration with an instant retail platform following partnerships with major e-commerce platforms like Taobao and JD.com [1][2] Group 1: Partnership Details - The first phase of the "Hongmei Plan" focuses on the Meituan Buy Medicine sector, enabling a seamless transition from Xiaohongshu advertisements to Meituan for purchasing [1][2] - Brands such as Kuaike, Xiaokuihua, and Fenbide are among the first to test this direct marketing approach in the pharmaceutical sector [1][2] Group 2: Performance Metrics - The "direct grass planting" feature has led to an average increase of 42% in search volume on Xiaohongshu for participating brands, with a significant reduction of over 33% in order costs compared to industry averages [1][2] - The efficiency of customer entry into stores has improved by 76% when combining traditional advertising with the "direct grass planting" feature [1][2] Group 3: Market Reach - Meituan currently supports instant retail services across nearly 3,000 urban and rural areas in China, with over 250,000 pharmacies on its platform, including more than 15,000 24-hour pharmacies [1][2] - During the 2025 Double 11 shopping festival, the number of brands utilizing the "direct grass planting" feature doubled compared to the 618 shopping festival, with over 1,000 products achieving sales exceeding one million yuan [1][2]

Core Viewpoint - The report by Jefferies emphasizes that artificial intelligence will remain the primary theme in China's internet market through 2026, followed by the defensive entertainment sector and the rapidly growing tourism industry [1] Group 1: Market Trends - The market has already factored in recent consumer sentiment and monthly Gross Merchandise Volume (GMV) growth, with a year-on-year GMV increase of 7.5% in the third quarter of September, and growth rates of 4.9% and 1.5% for October and November respectively compared to the same period last year [1] Group 2: Company Preferences - Jefferies lists Alibaba-W (09988) and Tencent Holdings (00700) as the top picks in the internet sector, followed by Baidu Group-SW (09888), Trip.com Group-S (09961), NetEase-S (09999), Kuaishou-W (01024), Tencent Music-SW (01698), JD Group-SW (09618), and Meituan-W (03690) [1] Group 3: E-commerce Focus - The focus in the fast e-commerce sector is shifting from low Average Order Value (AOV) orders to high AOV orders, as the latter offers better unit economics under healthy industry conditions [1] Group 4: Kuaishou Developments - Kuaishou's AI-generated model "K可灵AI" has launched several new products, with analysis indicating that its motion control feature has gained significant popularity in overseas markets since late December and into January, with expectations that Kuaishou's fourth-quarter performance will meet projections [1]

Group 1 - The core theme of the report by Jefferies is that artificial intelligence will continue to be the primary focus of the Chinese internet market through 2026, followed by the defensive entertainment sector and the rapidly growing tourism industry [2][5] - The report highlights that the market has factored in recent consumer sentiment and monthly Gross Merchandise Volume (GMV) growth, with a year-on-year increase of 7.5% in GMV for the September quarter, and growth rates of 4.9% and 1.5% for October and November respectively [2][5] - Jefferies identifies Alibaba-W (09988) and Tencent Holdings (00700) as the top picks in the internet sector, followed by Baidu Group-SW (09888), Trip.com Group-S (09961), NetEase-S (09999), Kuaishou-W (01024), Tencent Music-SW (01698), JD Group-SW (09618), and Meituan-W (03690) [2][5] Group 2 - The focus in the fast e-commerce sector is shifting from low Average Order Value (AOV) orders to high AOV orders, as the latter offers better unit economics in a healthy industry environment [2][5] - Kuaishou's AI-generated video model "Keling AI" has launched several new products, and analysis indicates that its motion control feature has gained popularity in overseas markets since late December and into January, with expectations that Kuaishou's Q4 performance will meet projections [2][5]

Core Insights - The article highlights the top short-selling ratios and amounts for various companies, indicating significant market sentiment against these stocks [1][2]. Short-Selling Ratios - AIA Group Limited (友邦保险-R) has the highest short-selling ratio at 100.00% [2]. - China Resources Beer (华润啤酒-R) follows with a short-selling ratio of 93.73% [2]. - Great Wall Motor (长城汽车-R) has a short-selling ratio of 91.63% [2]. Short-Selling Amounts - Xiaomi Group (小米集团-W) leads in short-selling amount with 2.532 billion [2]. - Alibaba Group (阿里巴巴-W) has a short-selling amount of 2.493 billion [2]. - Tencent Holdings (腾讯控股) reports a short-selling amount of 1.976 billion [2]. Deviation Values - China Ping An (中国平安-R) has the highest deviation value at 44.83%, indicating a significant difference from its average short-selling ratio [2]. - Hong Kong Exchanges and Clearing (香港交易所-R) has a deviation value of 44.09% [2]. - AIA Group Limited (友邦保险-R) shows a deviation value of 41.14% [2].

Core Insights - The article highlights the net inflow and outflow of funds in the Hong Kong stock market, with Xiaomi Group, Tencent Holdings, and China Construction Bank leading in net inflows, while the Yingfu Fund, Hang Seng China Enterprises, and Southern Hang Seng Technology experienced the highest net outflows [1] Group 1: Net Inflows - Xiaomi Group-W (01810) recorded a net inflow of 1.07 billion, representing a 16.36% increase in its closing price [2] - Tencent Holdings (00700) saw a net inflow of 863 million, with a 7.49% increase in its closing price [2] - China Construction Bank (00939) had a net inflow of 699 million, with a significant 41.06% increase in its closing price [2] Group 2: Net Outflows - Yingfu Fund (02800) experienced the largest net outflow of 6.289 billion, reflecting a -31.44% change in its closing price [2] - Hang Seng China Enterprises (02828) had a net outflow of 2.880 billion, with a -17.89% change in its closing price [2] - Southern Hang Seng Technology (03033) faced a net outflow of 1.289 billion, showing a -11.37% change in its closing price [2] Group 3: Net Inflow Ratios - 361 Degrees (01361) led with a net inflow ratio of 74.40%, with a net inflow of 8.9117 million [3] - BRILLIANCE CHI (01114) followed with a net inflow ratio of 64.04%, amounting to a net inflow of 36.4910 million [3] - Qin Port Co. (03369) had a net inflow ratio of 61.05%, with a net inflow of 846,600 [3] Group 4: Net Outflow Ratios - Wisdom Hong Kong 100 (02825) had a net outflow ratio of -100.00%, with a net outflow of -18,200 [3] - Stone Pharmaceutical Group (02005) recorded a net outflow ratio of -68.86%, with a net outflow of -14.1501 million [3] - Dexion Shipping (02510) experienced a net outflow ratio of -53.53%, with a net outflow of -10.0204 million [3]

Market Performance - On January 12, the Hang Seng Index rose by 1.44%, closing at 26,608.48 points, with a total net inflow of HKD 7.306 billion through the southbound trading channel [1] - The total trading volume for the southbound trading was HKD 147.494 billion, with a net buying amount of HKD 7.306 billion [1] Trading Activity - In the Shanghai-Hong Kong Stock Connect, the trading volume was HKD 86.413 billion, with a net buying of HKD 1.546 billion; in the Shenzhen-Hong Kong Stock Connect, the trading volume was HKD 61.081 billion, with a net buying of HKD 5.760 billion [1] - The most actively traded stock in the Shanghai-Hong Kong Stock Connect was Alibaba-W, with a trading amount of HKD 8.776 billion, followed by Tencent Holdings and Xiaomi Group-W, with trading amounts of HKD 3.590 billion and HKD 2.802 billion, respectively [1] Stock Performance - Tencent Holdings had the highest net buying amount of HKD 1.184 billion, with its stock price increasing by 1.96% [1] - The stock with the highest net selling amount was China Mobile, with a net selling of HKD 1.030 billion, while its stock price rose by 0.25% [1] - In the Shenzhen-Hong Kong Stock Connect, Alibaba-W led with a trading amount of HKD 6.830 billion, followed by Tencent Holdings and Meituan-W, with amounts of HKD 3.416 billion and HKD 2.100 billion, respectively [2] - Kuaishou-W had the highest net buying amount of HKD 1.298 billion, with its stock price increasing by 7.43% [2] - China Ping An had the highest net selling amount of HKD 0.342 billion, with its stock price decreasing by 2.14% [2]

Market Overview - On January 12, the Hang Seng Index rose by 1.44%, with total southbound trading amounting to HKD 1,474.94 billion, including buy transactions of HKD 774.00 billion and sell transactions of HKD 700.94 billion, resulting in a net buy of HKD 73.06 billion [2][3]. Southbound Trading Details - The southbound trading through Stock Connect (Shenzhen) had a total transaction amount of HKD 610.81 billion, with buy transactions of HKD 334.20 billion and sell transactions of HKD 276.61 billion, leading to a net buy of HKD 57.60 billion [2]. - The southbound trading through Stock Connect (Shanghai) had a total transaction amount of HKD 864.13 billion, with buy transactions of HKD 439.80 billion and sell transactions of HKD 424.33 billion, resulting in a net buy of HKD 15.46 billion [2]. Active Stocks - The most actively traded stock by southbound funds was Alibaba-W, with a total transaction amount of HKD 156.07 billion, followed by Tencent Holdings and Xiaomi Group-W, with transaction amounts of HKD 70.06 billion and HKD 46.71 billion, respectively [2][3]. - Among the net buying stocks, Kuaishou-W had the highest net buy amount of HKD 22.45 billion, with a closing price increase of 7.43%. Tencent Holdings followed with a net buy of HKD 20.12 billion, and Southern Hang Seng Technology had a net buy of HKD 8.58 billion [2][3]. Continuous Net Buying and Selling - Three stocks experienced continuous net buying for more than three days, with Xiaomi Group-W leading at 8 days, followed by Tencent Holdings at 4 days and SMIC at 3 days. The total net buy amounts were HKD 63.26 billion for Xiaomi Group-W, HKD 62.43 billion for Tencent Holdings, and HKD 12.79 billion for SMIC [3]. - Two stocks faced continuous net selling, with China Mobile and Meituan-W having the highest net sell amounts of HKD 44.80 billion and HKD 10.76 billion, respectively [3].