Core Viewpoint - SMIC has experienced a continuous net buying trend from southbound funds for six consecutive days, with a total net buying amount of HKD 30.18 billion and a stock price increase of 11.56% [2] Group 1: Trading Activity - On October 28, the total trading volume of active stocks through the Hong Kong Stock Connect reached HKD 378.05 billion, with a net buying amount of HKD 3.92 billion [2] - Among the active stocks on October 28, SMIC recorded a trading amount of HKD 88.06 billion through the Hong Kong Stock Connect, with a net buying amount of HKD 0.77 billion [2] Group 2: Stock Performance - SMIC's stock price has risen by 11.56% during the period of continuous net buying [2] - The cumulative net buying amount for SMIC over the six-day period reached HKD 30.18 billion [2]

Group 1 - Southbound funds net bought Hong Kong stocks worth 2.258 billion HKD today [1] - The top net purchases included China Mobile at 512 million HKD, Hua Hong Semiconductor at 396 million HKD, Pop Mart at 322 million HKD, Meituan-W at 166 million HKD, and Sanhua Intelligent Control at 114 million HKD [1] - The top net sales included Alibaba-W at 522 million HKD, Tencent Holdings at 356 million HKD, and Li Auto-W at 292 million HKD [1] Group 2 - Southbound funds have net bought SMIC for six consecutive days, totaling 3.01773 billion HKD [1]

Market Overview - The Shanghai Central Enterprise Index (000042) closed at 1852.7 points, down 0.18%, with a trading volume of 79.123 billion yuan and a turnover rate of 0.33% [1] - Among the index constituents, 16 stocks rose while 33 fell, with AVIC Shenyang Aircraft (中航沈飞) leading the gainers at 1.92% and Zhongjin Gold (中金黄金) leading the decliners at 3.49% [1] Key Constituents - The top ten constituents of the Shanghai Central Enterprise Index are as follows: - China Merchants Bank (招商银行): 10.19% weight, latest price 41.60 yuan, market cap 1,049.146 billion yuan [1] - Yangtze Power (长江电力): 6.79% weight, latest price 28.46 yuan, market cap 696.365 billion yuan [1] - CITIC Securities (中信证券): 5.95% weight, latest price 30.00 yuan, market cap 444.616 billion yuan [1] - SMIC (中芯国际): 5.68% weight, latest price 132.69 yuan, market cap 1,061.529 billion yuan [1] - Industrial and Commercial Bank of China (工商银行): 5.21% weight, latest price 7.99 yuan, market cap 28,476.86 billion yuan [1] - Agricultural Bank of China (农业银行): 4.34% weight, latest price 8.31 yuan, market cap 29,083.59 billion yuan [1] - Bank of Communications (交通银行): 3.65% weight, latest price 7.27 yuan, market cap 6,424.05 billion yuan [1] - Beijing-Shanghai High-Speed Railway (京沪高铁): 3.07% weight, latest price 5.26 yuan, market cap 257.349 billion yuan [1] - China Shipbuilding Industry (中国船舶): 2.65% weight, latest price 36.62 yuan, market cap 275.588 billion yuan [1] - China Shenhua Energy (中国神华): 2.59% weight, latest price 42.59 yuan, market cap 846.200 billion yuan [1] Capital Flow - The net outflow of main funds from the index constituents totaled 3.92 billion yuan, while retail investors saw a net inflow of 2.021 billion yuan [1] - The detailed capital flow for key stocks includes: - AVIC Shenyang Aircraft: Main funds net inflow of 284 million yuan [2] - Yangtze Power: Main funds net inflow of 231 million yuan [2] - Agricultural Bank of China: Main funds net inflow of 127 million yuan [2] - Industrial and Commercial Bank of China: Main funds net inflow of 86 million yuan [2] - China Petroleum (中国石油): Main funds net inflow of 6.5195 million yuan [2] ETF Information - The Gold Stock ETF (product code: 159562) tracks the CSI Hong Kong-Shanghai Gold Industry Index, with a recent five-day change of -0.55% and a P/E ratio of 24.55 times [4] - The latest share count is 1.26 billion, a decrease of 32 million shares, with a net inflow of main funds amounting to 7.874 million yuan [4]

Core Insights - The report indicates a significant increase in the allocation of active equity funds, with a rise in overall positions and specific sector allocations, reflecting a strategic shift towards technology and growth sectors [2]. Fund Positioning - Active equity funds' overall position increased by 1.46 percentage points from Q2 to 87.43%, with ordinary stock funds, mixed equity funds, and flexible allocation funds rising by 0.93, 1.33, and 1.87 percentage points respectively [2]. - The allocation to the ChiNext board saw a notable increase of 4.70 percentage points to 23.7%, while the STAR Market allocation grew by 2.12 percentage points to 17.45%. Conversely, the main board allocation decreased by 6.71 percentage points to 58.51% [2]. Sector Allocation - The sectors with the highest increases in allocation include electronics (+6.77 percentage points), telecommunications (+3.96 percentage points), and electric equipment (+2.42 percentage points), indicating a focus on technology growth [2]. - The sectors with the largest reductions in allocation are banking (-3.05 percentage points), food and beverage (-1.81 percentage points), and home appliances (-1.62 percentage points) [2]. Industry Insights - In terms of secondary industries, the top increases were seen in communication equipment (+4.45 percentage points), consumer electronics (+3.09 percentage points), and semiconductors (+2.34 percentage points). The largest reductions were in white goods (-1.67 percentage points), city commercial banks (-1.45 percentage points), and liquor (-1.02 percentage points) [2]. - The individual stocks with the most significant increases in positions include Zhongji Xuchuang, Industrial Fulian, Xinyisheng, Hanwujing, and Luxshare Precision, with increases of 2.17, 2.03, 1.92, 0.91, and 0.63 percentage points respectively. The stocks with the largest decreases include Midea Group, China Merchants Bank, SF Express, Kweichow Moutai, and Gree Electric [2]. Hong Kong Market - In the Hong Kong market, the active equity fund's position slightly decreased by 0.76 percentage points to 19.09%. The sectors with increased allocations include healthcare and materials, while reductions were seen in telecommunications, finance, and energy [2]. - The stocks with the most significant increases in positions in the Hong Kong market are Alibaba, SMIC, and Tencent, while Xiaomi, Meituan, and Pop Mart saw notable reductions [2].

Core Viewpoint - The main focus of the news is the significant outflow of capital from the Shanghai and Shenzhen stock markets, with a net outflow of 48.369 billion yuan, indicating a bearish sentiment among investors [1]. Group 1: Market Overview - The total net outflow of capital from the Shanghai and Shenzhen markets reached 48.369 billion yuan, with the Sci-Tech Innovation Board experiencing a net outflow of 3.603 billion yuan [1]. - A total of 194 stocks saw net inflows, while 397 stocks experienced net outflows [1]. - On the Sci-Tech Innovation Board, 257 stocks rose, while 330 stocks fell [1]. Group 2: New Stock Performance - Newly listed stock C He Yuan-U had the highest closing increase of 213.49% with a turnover rate of 83.76% and a net inflow of 1.776 billion yuan [1]. - Other new stocks, C Yi Cai-U and C Bi Bei Te-U, also performed well, with closing increases of 198.72% and 74.41%, respectively [1]. Group 3: Capital Flow Analysis - Among the stocks with net inflows, C He Yuan-U led with a net inflow of 1.776 billion yuan, followed by C Yi Cai-U with 1.295 billion yuan and C Bi Bei Te-U with 413 million yuan [1]. - The stock with the highest net outflow was Zhongxin International, which saw a net outflow of 844 million yuan and a decline of 1.35% [1]. - Other notable stocks with significant net outflows included Lanqi Technology and Haiguang Information, with outflows of 369 million yuan and 343 million yuan, respectively [1]. Group 4: Continuous Capital Flow - A total of 53 stocks experienced continuous net inflows for more than three trading days, with the highest being Huafeng Measurement and Weichuang Electric, both with seven consecutive days of inflow [2]. - Conversely, 111 stocks faced continuous net outflows, with Youyan Silicon experiencing the longest streak at 13 consecutive days [2].

Core Points - The Shanghai Composite Index fell by 0.22% on October 28, with 10 industries rising, led by the comprehensive and defense industries, which increased by 2.06% and 1.07% respectively. The industries with the largest declines were non-ferrous metals and beauty care, down by 2.72% and 1.51% respectively [1] Industry Summary - The electronic industry experienced a decline of 0.37%, with a net outflow of 12.127 billion yuan in main funds. Out of 470 stocks in this sector, 209 rose, 5 hit the daily limit, and 253 fell. There were 118 stocks with net inflows, with 14 exceeding 100 million yuan, led by C Yicai-U with a net inflow of 1.295 billion yuan, followed by Fangzheng Technology and Hu Dian Co., with net inflows of 896 million yuan and 476 million yuan respectively [1] - The top gainers in the electronic industry included C Yicai-U, which surged by 198.72%, and Fangzheng Technology, which rose by 10.01%. Other notable gainers were Hu Dian Co. and He Li Tai, with increases of 3.21% and 10.16% respectively [1] - The electronic industry saw significant outflows, with 48 stocks experiencing net outflows exceeding 100 million yuan. The largest outflows were from Shenghong Technology, with 1.14 billion yuan, followed by SMIC and Wentai Technology, with outflows of 844 million yuan and 641 million yuan respectively [2]

Group 1: Core Insights - The recent quarterly reports from companies listed on the Sci-Tech Innovation Board (STAR Market) show impressive performance, with Haiguang Information achieving a total revenue of 9.49 billion yuan, a year-on-year increase of 54.65%, and a net profit of 1.96 billion yuan, up 28.56% [1] - Cambricon reported a staggering revenue of 4.61 billion yuan, reflecting a year-on-year growth of 2386.38%, and a net profit of 1.61 billion yuan, marking a turnaround from losses [1] - The growth in these companies is attributed to deepened collaborations with OEMs and ecosystem partners, as well as accelerated client onboarding, particularly in high-end processor products [1] Group 2: Industry Trends - The STAR Market continues to demonstrate strong growth in emerging industries such as AI computing chips and optical communications, maintaining the positive momentum seen in the first half of the year [1] - The demand for self-sufficiency in technology is increasing amid rising de-globalization, with the STAR Market focusing on hard technology sectors like electronic chips, emerging software, and new information technology services [2] - The top five industries on the STAR Market include electronics, biomedicine, computers, power equipment, and machinery, collectively accounting for 88.7% of the market capitalization [3] Group 3: Market Performance - The overall performance of the STAR Market has seen a recent pullback, with the STAR 50 Index declining by 6.16%, the Sci-Tech Information Index down 6.44%, and the Sci-Tech Chip Index falling by 6.57% [3] - Despite the recent downturn, the year-to-date performance of the STAR 50 Index is up 37.84%, indicating strong underlying growth potential [4] Group 4: Sector Analysis - The new generation information technology sector, particularly the electronic chip industry, has shown robust performance driven by policy support, technological breakthroughs, and capital inflows [5] - The high-end equipment manufacturing sector is under pressure due to escalating trade tensions, but domestic companies are actively expanding overseas production capabilities [6] - The pharmaceutical sector is experiencing adjustments influenced by external market conditions, but upcoming events like the European Society for Medical Oncology (ESMO) conference are expected to act as catalysts for innovation [6]

Core Insights - The Sci-Tech Innovation Board (STAR Market) has transformed from an experimental platform for institutional innovation to a hub for "hard tech" companies during the 14th Five-Year Plan period, with significant growth in the number and market capitalization of technology innovation companies [1][2] Group 1: Market Performance - As of October 26, 2025, the number of listed companies on the STAR Market reached 589, with total IPO fundraising of 925.7 billion yuan and refinancing of 186.7 billion yuan, exceeding 1.1 trillion yuan in total [2] - The proportion of technology innovation companies in the Shanghai market increased from 32% to 41%, and their market capitalization share rose from 27% to 32% [1] Group 2: Industry Focus - The STAR Market has seen over 80% of its companies in emerging industries such as new-generation information technology, biomedicine, and high-end equipment manufacturing [2] - Approximately 120 companies in the integrated circuit sector are listed on the STAR Market, covering all aspects of the industry chain, including design, manufacturing, and testing [2] Group 3: R&D Investment - R&D investment by companies in the Shanghai market increased from 640 billion yuan to 1.07 trillion yuan, a growth of 66%, accounting for nearly 40% of the national total [3] - STAR Market companies have accumulated 120,000 patents, with a median R&D intensity of 12.6%, leading all A-share sectors [3] Group 4: Institutional Innovation - The STAR Market has introduced various reforms, including the "STAR Market Eight" and "M&A Six," enhancing inclusivity and providing tailored support for companies at different stages [4][5] - The STAR Market has streamlined refinancing conditions and established a quick financing system, significantly improving financing convenience for companies [5] Group 5: Talent and Investment Dynamics - Over 60% of STAR Market companies have founding teams composed of scientists and engineers, with nearly 30% of actual controllers also serving as core technical personnel [7] - The STAR Market has fostered a culture of early, small, and hard-tech investments, with about 90% of companies receiving venture capital before listing [7] Group 6: Future Outlook - As the 14th Five-Year Plan concludes, the capital market is expected to undergo deeper reforms to enhance the development of new quality productivity [8] - Future initiatives will focus on improving long-term capital arrangements and facilitating the entry of medium to long-term funds into the market [8]

Group 1 - The core theme of technological self-reliance is strengthening, with the Hong Kong stock market's semiconductor sector showing robust performance [1] - Major stocks like SMIC and Hua Hong Semiconductor received significant net purchases from southbound funds, amounting to HKD 11.43 billion and HKD 9.86 billion respectively, ranking first and third among the top ten active stocks [1] - The newly launched Hong Kong Information Technology ETF (159131) is gaining market attention, tracking the CSI Hong Kong Stock Connect Information Technology Composite Index, which consists of 70% hardware and 30% software [1] Group 2 - The Hong Kong Stock Connect Information Technology Composite Index has achieved a cumulative increase of 110.93% from December 30, 2022, to September 30, 2025, significantly outperforming other Hong Kong technology indices [2] - As of October 16, 2025, the index's price-to-earnings ratio stands at 42.68 times, which is substantially lower than major global technology indices like the ChiNext Index and NASDAQ [2] - The index includes 41 hard technology companies, with SMIC holding a weight of 19.41%, Xiaomi at 10.28%, and Hua Hong Semiconductor at 5.11%, indicating a high concentration of leading stocks [1][2]

Group 1 - Semiconductor stocks in Hong Kong are actively trading, with notable increases in shares such as SMIC rising by 3% and Fudan Microelectronics by 3.3% [1] - The Fourth Plenary Session's communiqué emphasizes high-quality development and significant improvements in technological self-reliance during the 14th Five-Year Plan period [1] - Global memory prices are on the rise, with Samsung and SK Hynix notifying clients of potential increases in DRAM and NAND contract prices by up to 30% in Q4 [1] Group 2 - The core driver for the continuous miniaturization of integrated circuit chips is lithography technology [1] - A research team from Peking University has successfully utilized cryo-electron tomography to analyze the three-dimensional structure and entanglement behavior of photoresist molecules in situ, leading to industrial solutions that significantly reduce lithography defects [1]