Core Insights - On October 10, 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 140.49 billion, 86.63 billion, and 42.68 billion respectively [1][2] - In the southbound trading of the Shenzhen-Hong Kong Stock Connect, Alibaba-W (09988), SMIC (00981), and Tencent Holdings (00700) also ranked as the top three, with trading amounts of 77.88 billion, 48.07 billion, and 26.41 billion respectively [1][2] Southbound Trading Highlights - The top three active companies in the southbound trading of the Shanghai-Hong Kong Stock Connect were: - Alibaba-W (09988): 140.49 billion with a net buy of -13.44 billion - SMIC (00981): 86.63 billion with a net buy of -14.69 billion - Tencent Holdings (00700): 42.68 billion with a net buy of -11.60 billion [2] - The top three active companies in the southbound trading of the Shenzhen-Hong Kong Stock Connect were: - Alibaba-W (09988): 77.88 billion with a net buy of -4.67 billion - SMIC (00981): 48.07 billion with a net buy of -12.39 billion - Tencent Holdings (00700): 26.41 billion with a net buy of +2.09 billion [2]

Summary of Key Points Core Viewpoint - The Hong Kong stock market experienced a net sell-off of 3.99 billion HKD from northbound trading, with significant movements in various stocks, indicating a shift in investor sentiment and trading strategies. Group 1: Northbound Trading Activity - Northbound trading saw a net sell of 12.2 billion HKD in the Shanghai-Hong Kong Stock Connect and a net buy of 8.21 billion HKD in the Shenzhen-Hong Kong Stock Connect [1] - The most bought stocks included Xiaomi Group-W (01810), Pop Mart (09992), and ZTE Corporation (00763) [1] - The most sold stocks were SMIC (00981), Alibaba-W (09988), and Hua Hong Semiconductor (01347) [1] Group 2: Stock-Specific Insights - Xiaomi Group-W (01810) had a net buy of 9.33 billion HKD, with a reported increase in electric vehicle deliveries to over 40,000 units in September, up from 36,000 in August [4] - Pop Mart (09992) received a net buy of 6.69 billion HKD, with new product launches selling out quickly and expectations for strong sales during upcoming festive seasons [5] - ZTE Corporation (00763) saw a net buy of 4.9 billion HKD, with analysts highlighting its unique position in providing end-to-end communication solutions and potential benefits from AI development [5] Group 3: Notable Sell-offs - Alibaba-W (09988) faced a net sell of 18.1 billion HKD, while Tencent (00700) experienced a net sell of 9.51 billion HKD, reflecting concerns over market valuations and potential corrections [6] - SMIC (00981) and Hua Hong Semiconductor (01347) were sold off significantly, with net sells of 27.08 billion HKD and 11.44 billion HKD respectively, attributed to high static P/E ratios leading to adjustments in margin financing [6]

Group 1 - Southbound funds recorded a net sell of HKD 399 million in Hong Kong stocks today [1] - Notable net purchases included Xiaomi Group-W at HKD 933 million, Pop Mart at HKD 669 million, and ZTE Corporation at HKD 490 million [1] - Significant net sells were observed in SMIC at HKD 2.709 billion, Alibaba-W at HKD 1.81 billion, and Tencent Holdings at HKD 951 million [1] Group 2 - Southbound funds have continuously net bought Xiaomi for 5 days, totaling HKD 3.82084 billion [1] - There has been a consecutive 2-day reduction in holdings for SMIC, amounting to HKD 5.105 billion [1] - A similar trend of reduction was noted for Hua Hong Semiconductor, with a total decrease of HKD 2.286 billion over 2 days [1]

Group 1 - The net selling of southbound funds amounted to 399 million HKD on October 10 [1] - Xiaomi Group, Pop Mart, and ZTE Corporation were the top three net buyers, with net purchases of 933 million HKD, 670 million HKD, and 491 million HKD respectively [1] - Semiconductor companies such as SMIC, Alibaba, and Hua Hong Semiconductor faced significant net selling, with amounts of 2.709 billion HKD, 1.81 billion HKD, and 1.145 billion HKD respectively [1]

Group 1 - Southbound funds recorded a net sell of 399 million HKD [1] - The top three net purchases were from Xiaomi Group-W, Pop Mart, and ZTE Corporation, with net purchases of 933 million HKD, 670 million HKD, and 491 million HKD respectively [1] - The companies with the highest net sells were SMIC, Alibaba-W, and Hua Hong Semiconductor, facing net sells of 2.709 billion HKD, 1.81 billion HKD, and 1.145 billion HKD respectively [1]

Core Insights - The "WHY SO SERIOUS" series of blind boxes launched by Pop Mart for Halloween sold out within minutes online, indicating strong demand for the product [2] - The series features popular characters from Pop Mart's IPs, including LABUBU, DIMOO, and MOLLY, with individual blind boxes priced at 159 yuan and a full box at 1272 yuan [2] - The resale prices for certain characters have seen significant premiums, with some items reaching up to 13.4 times their original price [2] Pricing and Resale Performance - The LABUBU-based "Moon Shadow Mask" blind box saw its price rise from 159 yuan to a peak of 2289 yuan, a premium of 13.4 times [2] - The "Bubble Gum" character based on the Star Person IP had a resale price of 1569 yuan, reflecting a 9 times premium [2] - Other popular items, such as the "Throwing Clown" and "Fiery Clown," also experienced notable premiums of 7.2 times and 3.8 times, respectively [2] Comparison with Previous Series - The "WHY SO SERIOUS" series had lower premiums compared to the "Delicious Moments Series" launched before the National Day, which saw a peak premium of 14.7 times for the "Little Bear Biscuit" [3] - The average resale price for the "Delicious Moments Series" blind boxes increased significantly, with individual boxes rising from 59 yuan to 249 yuan, a premium of 3.2 times [3] Future Product Launches - For Halloween 2024, Pop Mart is set to release the LABUBU-themed "Monster Carnival" plush hangers, which includes only one product but has already generated user interest [3] - The price for the LABUBU item increased from 159 yuan to 783 yuan, reflecting a premium of 3.1 times, with an average resale price currently at 339 yuan [3] Stock Performance - As of October 10, Pop Mart's stock was trading at 260.8 HKD per share, experiencing a slight decline of 0.61% [4]

Core Insights - The "WHY SO SERIOUS" series of blind boxes launched by Pop Mart for Halloween sold out within minutes online, indicating high demand and popularity [1] - The series features popular characters from various IPs under Pop Mart, including LABUBU, DIMOO, and MOLLY, with individual blind boxes priced at 159 yuan and a full box at 1272 yuan [1] - The resale prices for certain characters have surged significantly, with some items experiencing premiums of up to 13.4 times their original price [1][2] Pricing and Resale Insights - The LABUBU-based "Moon Shadow Mask" reached a peak resale price of 2289 yuan, a 13.4 times increase from its original price [1] - The small hidden "Bubble Gum" based on the Star Person character had a resale price of 1569 yuan, reflecting a 9 times premium [1] - Other popular items in the series also saw substantial price increases, with premiums ranging from 2.8 to 7.2 times their original prices [1] - In comparison, the previous "Delicious Moments Series" featuring Star Person had even higher premiums, with some items reaching a 14.7 times increase [2] Market Performance - As of October 10, Pop Mart's stock price was reported at 260.8 HKD per share, reflecting a slight decline of 0.61% [4] - The upcoming LABUBU-themed products for Halloween 2024 have already generated interest, with initial prices rising from 159 yuan to 783 yuan, indicating a 3.1 times premium [2][3]

Core Viewpoint - TOP TOY, a trendy toy brand under Miniso, has submitted its listing application to the Hong Kong Stock Exchange, aiming for independent listing after three years of establishment, driven by the popularity of emotional consumption and trendy toys [1][4]. Financial Performance - TOP TOY's revenue has shown significant growth, increasing from 678.79 million RMB in 2022 to 1.46 billion RMB in 2023, and projected to reach 1.91 billion RMB in 2024, reflecting a strong upward trend [2][4]. - The gross profit for the same period has also improved, with figures of 135.07 million RMB in 2022, 458.83 million RMB in 2023, and 624.37 million RMB in 2024, indicating a gross margin increase from 19.9% to 32.7% [2][4]. - In the first half of 2023, TOP TOY achieved a record revenue of 1.36 billion RMB, marking a year-on-year growth of 58.5% [3][5]. Business Model and Market Position - TOP TOY operates as a platform for trendy toys, focusing on licensed IP toys, proprietary IP toys, and third-party brand toys, with a strong emphasis on figurines, 3D models, and plush toys [4][8]. - The brand has expanded its store count to 293 by mid-2025, with a notable increase in overseas stores from 4 to 10, primarily in Southeast Asia [5][6]. Revenue Sources - The revenue from sales to franchisees and distributors has increased, with sales to distributors rising from 43.9% in 2022 to 55.3% in 2024 [5][6]. - The sales revenue from proprietary IP products remains low, with only 680,000 RMB generated in 2023 compared to 8.89 billion RMB from licensed IPs, highlighting a heavy reliance on licensed products [8][10]. IP Strategy - TOP TOY has a diverse IP portfolio, with 17 proprietary IPs and 43 licensed IPs, but its revenue is predominantly driven by licensed IPs [8][10]. - The company is actively acquiring designer IPs to enhance its proprietary offerings, with recent acquisitions increasing its proprietary IP count from 8 to 17 [10].

Group 1: Hong Kong Stocks - Nocera Biotech (09969) fell over 8% after announcing a licensing collaboration with Zenas for three self-immune pipeline products [1] - Pop Mart (09992) rose over 2% as new products sold out immediately, with Morgan Stanley optimistic about the company's sales momentum [1] - Bluec (00325) increased over 8% after launching new "building block cars" and "building block figures" at the WF2025 exhibition [1] - Huaxin Cement (06655) rose over 7% after announcing a name change to "Huaxin Building Materials" and a restricted stock incentive plan [1] - Mixue Group (02097) gained over 5% after announcing an investment of nearly 300 million in the fresh beer industry, potentially opening up long-term growth opportunities [1] - CATL (03750) dropped nearly 6% as the cornerstone lock-up period is set to expire on the 19th of next month, with both Morgan Stanley and others downgrading the company's H-share rating [1] - Dazhong Public Utilities (01635) rose over 9%, stating that its operations are normal and previously mentioned its stake in Shenzhen Capital Group [1] - Jinli Permanent Magnet (06680) increased nearly 1%, forecasting a year-on-year increase of 157%-179% in net profit attributable to shareholders for the first three quarters [1] Group 2: Gold Stocks - Gold stocks opened lower collectively, with China Gold International (02099) down over 7%, Zijin Mining International (02259) down over 1%, Shandong Gold (01787) down over 6%, and Chifeng Jilong Gold Mining (06693) down over 6% due to easing geopolitical tensions leading to a pullback in precious metals [2] Group 3: US Stocks - AMBO Education (AMBO.US) surged 61.06% after announcing the launch of a real-time translation platform, WeSpeak, for enterprises [3] - CenturyLink (VNET.US) fell 3.13% as Goldman Sachs included it in a "strong buy" list for the Asia-Pacific region [3] - UiPath (PATH.US) rose 18.81% after announcing multiple collaborations with major tech companies like NVIDIA, OpenAI, Google, Microsoft, and Snowflake [3] - Tuniu (TOUR.US) decreased by 0.51%, despite a double-digit increase in user travel during this year's "Double Festival" holiday compared to last year [3] - Tesla (TSLA.US) fell 0.72% after reports that production of its humanoid robot, Optimus, has been paused [3] - Toyota (TM.US) dropped 2.97% after a recall of over 390,000 vehicles in the US due to software errors [3] - Lloyds Bank (LYG.US) decreased by 3.67% as it may need to increase provisions following a compensation plan for mis-sold auto loans [3] - Ferrari (RACE.US) fell 14.99%, reaching a six-month low as long-term profit guidance fell below expectations [4] - TSMC (TSM.US) decreased by 1.52%, projecting a consolidated revenue of approximately NT$330.98 billion for September 2025, a 1.4% decrease quarter-on-quarter but a 31.4% increase year-on-year [4] - PepsiCo (PEP.US) rose 4.23% with Q3 net revenue increasing by 2.7% to $23.94 billion, and core EPS of $2.29, both exceeding expectations [4]

Core Viewpoint - Pop Mart (09992) has seen a significant increase in stock price, reflecting strong consumer interest and sales momentum driven by new product launches and upcoming seasonal demand [1] Group 1: Stock Performance - Pop Mart's stock price rose over 4% during trading, with a current price of 269.80 HKD and a trading volume of 2.864 billion HKD [1] - As of the report, the stock price increased by 2.82% [1] Group 2: Product Demand - The new product series "WHY SO SERIOUS" and "MOKOKO" sold out immediately upon release, indicating high consumer demand [1] - The resale prices for the hidden items from the "WHY SO SERIOUS" series reached 1999 HKD and 2099 HKD, significantly higher than the original price of 159 HKD [1] Group 3: Market Outlook - Morgan Stanley's recent report suggests that Pop Mart will experience multiple consumption peaks in the coming months, including China's National Day and Western holidays such as Halloween, Thanksgiving, and Christmas [1] - The firm anticipates sustained sales momentum due to sufficient inventory of popular products, new product launches, and store expansions [1]