Core Insights - On November 26, 2025, Alibaba-W (09988), Meituan-W (03690), and Xiaomi Group-W (01810) were the top three companies by trading volume in the Southbound Stock Connect, with trading amounts of 81.62 billion, 36.34 billion, and 22.55 billion respectively [1][2] - In the Shenzhen-Hong Kong Stock Connect, Alibaba-W (09988), Tencent Holdings (00700), and Xiaomi Group-W (01810) also ranked as the top three, with trading amounts of 51.54 billion, 23.41 billion, and 22.22 billion respectively [1][2] Southbound Stock Connect - Top Active Companies - Alibaba-W (09988) had a trading amount of 81.62 billion with a net buying amount of +7.51 billion [2] - Meituan-W (03690) recorded a trading amount of 36.34 billion with a net selling amount of -4.03 billion [2] - Xiaomi Group-W (01810) achieved a trading amount of 22.55 billion with a net buying amount of +5.25 billion [2] - Other notable companies included SMIC (00981) with a trading amount of 19.98 billion and a net selling amount of -2.47 billion, and Tencent Holdings (00700) with a trading amount of 13.88 billion and a net selling amount of -14.37 million [2] Shenzhen-Hong Kong Stock Connect - Top Active Companies - Alibaba-W (09988) had a trading amount of 51.54 billion with a net buying amount of +7.77 billion [2] - Tencent Holdings (00700) recorded a trading amount of 23.41 billion with a net selling amount of -11.65 billion [2] - Xiaomi Group-W (01810) achieved a trading amount of 22.22 billion with a net selling amount of -6.49 billion [2] - Other significant companies included Meituan-W (03690) with a trading amount of 21.86 billion and a net buying amount of +36.17 million, and SMIC (00981) with a trading amount of 10.03 billion and a net selling amount of -4.21 million [2]

Market Overview - The Hang Seng Index increased by 0.46%, gaining 119 points to reach 26,013 points, while the Hang Seng Tech Index rose by 0.51%. The morning trading volume in Hong Kong was HKD 114 billion [1]. Airline Sector - Airline stocks led the gains, with China Eastern Airlines (00670) rising over 6% due to improved oil cost dynamics benefiting airline performance [2]. Biotechnology Sector - The Hang Seng Biotechnology Index rose over 2%. Rongchang Biopharmaceutical (09995) increased by over 5%, and Kangfang Biotech (09926) rose over 4%. China Biopharmaceutical (01177) gained 2.59% following significant breakthroughs in its self-developed HER2 dual-target ADC for breast cancer. Junshi Biosciences (01877) also saw an increase of over 3% as its Toripalimab subcutaneous injection Phase III clinical trial met its primary endpoint, with plans for subsequent listing application [3]. Pharmaceutical Sector - Basilea Pharmaceutica (02616) rose over 6% after the European Commission approved a new indication for Sugliquide [4]. AI and Technology Sector - GDS Holdings (09698) increased nearly 4% as domestic AI chip supply improved, with Morgan Stanley projecting a surge in orders by the second half of next year [5]. - Changfei Optical Fiber (06869) rose nearly 7% due to increased interest in Google's TPU chips, with institutions optimistic about AI-driven growth. Smoore International (06969) gained over 4% after signing a long-term battery cell procurement agreement with EVE Energy to secure supply for its electronic cigarette products [6]. E-commerce Sector - Alibaba Group (09988) saw a decline of over 2% during trading, with its adjusted net profit for the second fiscal quarter dropping 72% year-on-year [7].

Core Viewpoint - Changfei Optical Fiber and Cable (06869.HK) experienced a significant intraday surge, with shares rising nearly 7% at one point, reflecting strong market interest and trading activity [2] Group 1: Stock Performance - The stock is currently up 6.8%, trading at HKD 38.94 [2] - The trading volume reached HKD 925 million, indicating robust investor engagement [2]

Group 1 - Changfei Optical Fiber (601869) and Changjian Cable (06869) saw a significant intraday increase, with shares rising nearly 7% and currently trading at 38.94 HKD, with a transaction volume of 925 million HKD [1] - Meta is negotiating with Google regarding the use of TPU chips worth billions of dollars in its data centers by 2027, and plans to rent chips from Google Cloud next year [1] - According to Zhongtai Securities (600918), Google is building a strong AI moat through a complete technology ecosystem from chips (TPU), networks (OCS), models (Gemini), to applications (cloud computing/search/advertising), driving continuous growth in capital expenditure [1] Group 2 - Huatai Securities previously indicated that AI-driven data communication is fostering growth, with ongoing expansion in hollow-core fiber applications [1] - The company is leading globally in the research and industrialization of next-generation optical fiber technology, particularly in hollow-core fiber [1] - Through its subsidiary Changxin Bochuang (300548), the company has developed strong growth points in MPO, AOC, and high-speed copper cable interconnection components, benefiting from the construction of AI data centers in North America and expanding its overseas business [1]

Core Viewpoint - Longi Fiber Optics (06869) experienced a significant intraday surge, rising nearly 7% and trading at 38.94 HKD with a transaction volume of 925 million HKD, indicating strong market interest and potential growth in the fiber optics sector driven by AI and data center developments [1] Group 1: Company Developments - Longi Fiber Optics is leading in the research and industrialization of next-generation hollow-core fiber technology, positioning itself favorably in the market [1] - The company’s subsidiary, Changxin Bochuang, is expanding its business in MPO, AOC, and high-speed copper cable interconnection components, which have become strong growth points [1] Group 2: Industry Trends - Meta is negotiating with Google to utilize TPU chips worth billions in its data centers by 2027, indicating a growing demand for advanced computing technologies [1] - Google is building a robust AI moat through a complete technology ecosystem that includes chips (TPU), networks (OCS), models (Gemini), and applications (cloud computing/search/advertising), which is expected to drive continuous capital expenditure growth [1] - The anticipated increase in TPU shipment volumes, improved OCS penetration rates, and the ramp-up of 1.6T optical modules will create significant growth opportunities for related hardware suppliers [1]

Core Viewpoint - Changfei Fiber's stock rose by 5.4% to 85.37 CNY per share, with a trading volume of 1.179 billion CNY and a turnover rate of 3.45%, resulting in a total market capitalization of 64.702 billion CNY [1] Company Overview - Changfei Fiber Optic Cable Co., Ltd. is located in Wuhan, Hubei Province, and was established on May 31, 1988, with its listing date on July 20, 2018 [1] - The company focuses on the telecommunications industry, particularly on telecom operators and data communication, specializing in the R&D and manufacturing of optical fiber preforms, optical fibers, and cables, forming a complete industrial chain [1] - The revenue composition of the company includes: optical transmission products (60.25%), optical interconnection components (22.61%), and others (17.13%) [1] Fund Holdings - According to data, one fund under Guotai Fund holds a significant position in Changfei Fiber, specifically Guotai Jinlu Mixed Fund (020018), which held 58,100 shares in the third quarter, accounting for 4.94% of the fund's net value, ranking as the seventh largest holding [2] - The estimated floating profit from this position is approximately 253,900 CNY [2] Fund Manager Information - The fund manager of Guotai Jinlu Mixed Fund (020018) is Zhao Dazhen, who has been in the position for 3 years and 179 days, with the fund's total asset size at 119 million CNY [3] - During Zhao's tenure, the best fund return was 5.26%, and the worst return was also 5.26% [3]

Industry Overview - The optical communication industry is experiencing a surge in positive developments, with the official launch of satellite IoT commercial trials in China, expected to boost demand for optical communication in satellite data transmission [1] - The optical communication sector is recognized as the "nervous system" of the digital economy, providing essential value in scenarios such as computing networks and satellite communications, characterized by ultra-large bandwidth and ultra-low latency [1] - The establishment of the Optical-Electrical Integration Technology Committee is promoting the integration of industry, academia, and research, enhancing the collaborative competitiveness of the optical communication industry chain [1] Company Highlights - TeFa Information has been recognized as one of the top 10 most competitive companies in China's optical communication sector for 19 consecutive years, winning three major awards at the global optical fiber and cable conference [2] - TeFa Information's stock has seen a significant increase, with three consecutive days of trading limits and a trading volume that has more than tripled compared to previous periods, indicating strong market sentiment [2] - FuJing Technology, a core component supplier in optical communication, has seen heightened market attention, with its stock also hitting trading limits, reflecting positive expectations for its optical crystal business [2] Financial Performance - LongFly Fiber, a leading company in the optical fiber and cable sector, reported a rolling P/E ratio of approximately 155 times, significantly above the industry average, indicating potential overvaluation risks [3] - LongFly Fiber's revenue for the first half of 2025 was 6.384 billion, a year-on-year increase of 19.38%, but its net profit was 296 million, a year-on-year decrease of 21.71%, highlighting pressure on profitability due to insufficient industry demand [3] - Despite recent stock price fluctuations and potential outflow pressures from shareholder reduction plans, LongFly Fiber maintains substantial capacity to undertake large projects due to its scale advantages in the optical fiber and cable field [3]

Core Insights - The report highlights significant changes in the Hong Kong Stock Connect holdings, with notable increases and decreases in ownership percentages for various companies. Group 1: Increased Holdings - The companies with the largest increases in Hong Kong Stock Connect holdings include: - 大眾公用 (01635) with an increase of 1.25%, bringing the total holding to 70.66% [1][2] - 三花智控 (02050) with an increase of 0.87%, resulting in a holding of 20.55% [1][2] - 广和通 (00638) with an increase of 0.82%, leading to a holding of 3.18% [1][2] - In the last five trading days, 国富氢能 (02582) saw the largest increase of 7.76%, with a new holding of 16.69% [3] - Other notable increases include 龙蟠科技 (02465) at 3.80% and 长飞光纤光缆 (06869) at 2.71% [3] Group 2: Decreased Holdings - The companies with the largest decreases in Hong Kong Stock Connect holdings include: - 万国黄金集团 (03939) with a decrease of 8.53%, now holding 2.84% [1][2] - 恆生中国企业 (02828) with a decrease of 3.60%, resulting in a holding of 3.37% [1][2] - 盈富基金 (02800) with a decrease of 3.54%, leading to a holding of 3.55% [1][2] - In the last five trading days, 万国黄金集团 (03939) also experienced a significant decrease of 8.29% [3] - Other notable decreases include 丘鈦科技 (01478) at -2.27% and 康龙化成 (03759) at -2.18% [3]

Core Viewpoint - On November 25, the Hang Seng Index rose by 0.69%, closing at 25,894.55 points, with a net inflow of HKD 11.166 billion through the southbound trading channel [1]. Group 1: Market Activity - The total trading volume for the southbound trading on November 25 was HKD 1,012.80 billion, with a net buying amount of HKD 11.166 billion [1]. - The Shanghai Stock Exchange's southbound trading accounted for HKD 617.70 billion in trading volume, with a net buying of HKD 7.137 billion [1]. - The Shenzhen Stock Exchange's southbound trading had a volume of HKD 395.10 billion, resulting in a net buying of HKD 4.028 billion [1]. Group 2: Active Stocks - Alibaba-W was the most actively traded stock, with a trading volume of HKD 1,005.98 million and a net buying amount of HKD 350.41 million, closing with a price increase of 2.14% [2]. - Xiaomi Group-W followed with a trading volume of HKD 506.06 million, but had a net selling of HKD 20.34 million, closing up by 4.35% [2]. - Semiconductor Manufacturing International Corporation (SMIC) had a trading volume of HKD 282.32 million, with a net selling of HKD 24.59 million, and closed down by 0.15% [2].

Market Overview - The expectation for a Federal Reserve interest rate cut in December has significantly increased, leading to a rise in Hong Kong stocks, with the Hang Seng Index briefly surpassing 26,000 points. The index closed up 0.69% at 25,894.55 points, with a total turnover of HKD 231.49 billion [1] - The Hang Seng Tech Index rose by 1.2%, indicating a positive sentiment in the technology sector [1] Blue Chip Performance - Xiaomi Group-W (01810) saw a notable increase of 4.35%, closing at HKD 40.34, contributing 47.94 points to the Hang Seng Index. Founder Lei Jun invested over HKD 100 million to purchase 2.6 million shares, raising his stake to 23.26% [2] - Other blue-chip stocks like Baidu Group-SW (09888) and Alibaba Health (00241) also performed well, with increases of 4.56% and 4.36% respectively [2] Sector Highlights - Major technology stocks experienced gains, with Baidu and Xiaomi both rising over 4%. AI applications and computing power sectors were particularly active, with Bilibili rising over 5% [3] - Lithium stocks saw a surge, with Tianqi Lithium (002466) increasing by 4.81% and Ganfeng Lithium (01772) rising by 3.46%. The chairman of Tianqi Lithium indicated that global lithium demand is expected to reach 2 million tons by 2026, achieving a balance between supply and demand [4] - Gold stocks generally rose, with Chifeng Jilong Gold Mining (06693) up 4.86% and Zijin Mining (02899) up 1.78%. The probability of a 25 basis point rate cut by the Federal Reserve in December is currently at 81% [5] Flight Cancellations Impact - There has been a significant increase in flight cancellations from China to Japan, with a 56% rise compared to the previous month. This has led to a decrease in ticket bookings by approximately 29% [6] Notable Stock Movements - Longpan Technology (02465) surged by 22.89% after announcing a sales agreement worth over HKD 45 billion for lithium iron phosphate materials [7] - Hesai Technology (02525) rose by 13.43% following the launch of a new high-performance smart control chip [7] - Changfei Optical Fiber (06869) increased by 12.74%, driven by advancements in AI computing power [9] - Shandong Xinhua Pharmaceutical (00719) saw a rise of 7.24% due to increased demand for flu medications during the flu season [10]