Core Insights - The Hang Seng Index rose by 0.24% on December 2, with southbound capital totaling HKD 772.02 billion, resulting in a net inflow of HKD 41.01 billion [1][2] Trading Activity - Southbound trading saw a total transaction amount of HKD 772.02 billion, with buy transactions at HKD 406.52 billion and sell transactions at HKD 365.51 billion, leading to a net buy of HKD 41.01 billion [1] - The Hong Kong Stock Connect (Shenzhen) recorded a total transaction amount of HKD 308.41 billion, with net buying of HKD 30.71 billion, while the Hong Kong Stock Connect (Shanghai) had a total transaction amount of HKD 463.61 billion, with net buying of HKD 10.30 billion [1] Active Stocks - Alibaba-W had the highest trading volume among southbound stocks, with a total transaction amount of HKD 83.40 billion, followed by Xiaomi Group-W at HKD 38.44 billion and Meituan-W at HKD 36.15 billion [1][2] - Meituan-W led in net buying with HKD 5.92 billion, despite a closing price drop of 3.06%. Xiaomi Group-W and Alibaba-W had net buys of HKD 3.80 billion and HKD 3.57 billion, respectively [1][2] Continuous Net Buying - Three stocks, Alibaba-W, Meituan-W, and Xiaomi Group-W, experienced continuous net buying for over three days, with Alibaba-W leading at HKD 282.22 billion in total net buying [2]

Group 1 - Southbound funds recorded a net sell of 39.52 billion yuan today [1] - In the Hong Kong Stock Connect (Shanghai), the top net sells were in the Yingfu Fund and Meituan-W, with net sells of 11.28 billion HKD and 4.03 billion HKD respectively [1] - Alibaba-W had the highest net buy amount in the Hong Kong Stock Connect (Shanghai), totaling 7.51 billion HKD [1] Group 2 - In the Hong Kong Stock Connect (Shenzhen), Tencent Holdings and Yingfu Fund experienced net sells of 11.65 billion HKD and 11.31 billion HKD respectively [1] - Alibaba-W also led in net buy amounts in the Hong Kong Stock Connect (Shenzhen), with a total of 7.77 billion HKD [1]

Core Viewpoint - Southbound funds experienced a net sell-off of 39.52 billion HKD on November 26, with significant movements in major stocks [1] Group 1: Fund Movements - The Yingfu Fund saw a net sell-off of 22.59 billion HKD [1] - Tencent Holdings faced a net sell-off of 11.80 billion HKD [1] - Alibaba-W recorded a net buy of approximately 15.28 billion HKD [1]

Core Insights - The Hang Seng Index rose by 1.97% on November 24, with southbound trading totaling HKD 102.72 billion, resulting in a net inflow of HKD 8.57 billion [1][2] Trading Activity - Southbound trading saw a total turnover of HKD 1,027.23 million, with buy transactions amounting to HKD 556.47 million and sell transactions at HKD 470.76 million, leading to a net buy of HKD 85.71 million [1] - The Hong Kong Stock Connect (Shenzhen) recorded a total turnover of HKD 437.54 million, with net buying of HKD 64.94 million, while the Hong Kong Stock Connect (Shanghai) had a turnover of HKD 589.69 million and a net buy of HKD 20.78 million [1] Active Stocks - Alibaba-W was the most actively traded stock with a total turnover of HKD 167.75 million and a net buy of HKD 40.66 million, closing up by 4.67% [1][2] - Other notable stocks included Tencent Holdings with a net buy of HKD 11.67 million and Kuaishou-W with a net buy of HKD 8.19 million [1] - Semiconductor company SMIC saw the highest net sell of HKD 10.24 million, closing down by 1.09% [1][2] Continuous Net Buying - Alibaba-W, Southern Hang Seng Technology, and Tencent Holdings experienced continuous net buying for 8, 5, and 3 days respectively, with Alibaba-W leading in net buy amount at HKD 173.86 million [2]

Market Overview - On November 18, the Hang Seng Index fell by 1.72%, with southbound trading totaling HKD 983.54 billion, comprising HKD 529.10 billion in buying and HKD 454.44 billion in selling, resulting in a net buying amount of HKD 74.66 billion [2][3]. Southbound Trading Details - The southbound trading through Stock Connect (Shenzhen) had a total trading amount of HKD 366.04 billion, with net buying of HKD 47.21 billion, while the trading through Stock Connect (Shanghai) totaled HKD 617.50 billion, with net buying of HKD 27.45 billion [2][3]. Active Stocks - Alibaba-W was the most actively traded stock with a total trading amount of HKD 92.79 billion and a net buying amount of HKD 32.97 billion, despite a closing price drop of 0.19% [2][3]. - Other notable stocks included Tencent Holdings with a trading amount of HKD 58.48 billion and a net selling of HKD 1.91 billion, and Xiaomi Group-W with a trading amount of HKD 45.92 billion and a net buying of HKD 8.54 billion [2][3]. Continuous Net Buying - Three stocks experienced continuous net buying for more than three days, with Xiaomi Group-W leading at 15 days, followed by Alibaba-W and Huahong Semiconductor at 4 days each. The total net buying amounts were HKD 106.60 billion for Xiaomi Group-W and HKD 89.99 billion for Alibaba-W [3][4].

Core Insights - Southbound funds in Hong Kong experienced a trading volume of approximately HKD 91.376 billion, a decrease of about HKD 5.3 billion compared to the previous day, representing 42% of the total turnover of the Hang Seng Index, marking a short-term low [2] - The Hong Kong stock market continued its adjustment, with a net inflow of southbound funds amounting to approximately HKD 8.448 billion, with net inflows from the Shanghai-Hong Kong Stock Connect and Shenzhen-Hong Kong Stock Connect being approximately HKD 4.335 billion and HKD 4.113 billion, respectively [2] - Notably, the Yingfu Fund (02800.HK) saw a significant net buy of HKD 3.726 billion [2] Individual Stock Performance - Alibaba-W (09988.HK) had a net buy of HKD 2.071 billion, with short-term funds primarily flowing out, having reduced holdings by 4.096 million shares over the past five days [2] - Xiaomi Group-W (01810.HK) saw a decline of 0.94%, but short-term funds continued to flow in, increasing holdings by 9.056 million shares over the past five days [2] - Pop Mart (09992.HK) increased by 0.46%, with further inflow of short-term funds, adding 739,000 shares over the past five days [2] - Ganfeng Lithium (01772.HK) rose by 8.96%, with unclear short-term fund trends, having added 100,000 shares over the past five days [2] - SMIC (00981.HK) fell by 0.75%, with continued outflow of short-term funds, reducing holdings by 1.311 million shares over the past five days [2] Trading Activity Summary - The top active stocks in the southbound trading included Alibaba-W with a net inflow of HKD 12.02 billion from the Shanghai-Hong Kong Stock Connect and HKD 8.68 billion from the Shenzhen-Hong Kong Stock Connect [4] - The Yingfu Fund had a net inflow of HKD 31.80 billion, while Ganfeng Lithium experienced a net outflow of HKD 0.88 billion [4] - Over the past month, the total net inflow for the Shanghai-Hong Kong Stock Connect was HKD 59.858 billion and for the Shenzhen-Hong Kong Stock Connect was HKD 56.811 billion, totaling HKD 116.669 billion [3]

Group 1 - The core point of the news is that southbound funds have reduced their holdings in Melco International Development (00200.HK) by 420,000 shares on November 14, 2025, while there have been net increases in holdings on 3 out of the last 5 trading days, totaling 1,553,000 shares [1][2] - Over the past 20 trading days, southbound funds have increased their holdings on 12 days, with a total net increase of 6,792,000 shares [1][2] - As of now, southbound funds hold 135 million shares of Melco International Development, accounting for 5.94% of the company's total issued ordinary shares [1][2] Group 2 - The trading data shows that on November 14, 2025, the total number of shares held was 135 million, with a decrease of 420,000 shares, representing a change of -0.31% [2] - The previous trading days indicate a slight decrease of 53,000 shares on November 13, an increase of 299,000 shares on November 12, an increase of 935,000 shares on November 11, and an increase of 792,000 shares on November 10 [2] - Melco International Development operates primarily in the entertainment and hotel business, providing services such as gaming, accommodation, dining, entertainment performances, shopping, and conference exhibitions [2]

Core Viewpoint - Southbound funds recorded a net inflow of approximately 24.77 billion HKD this week, a decrease of about 13.9 billion HKD compared to the previous week, indicating a supportive operation towards the market [1] Fund Flow Summary - Total trading volume for the week reached 520.83 billion HKD, with southbound funds accounting for 44.71% of the total trading [1] - Significant net buying was observed in Xiaomi Group (01810.HK) with 5.96 billion HKD and China National Offshore Oil Corporation (00883.HK) with 2.82 billion HKD [2] - Major net selling was noted for Alibaba Group (09988.HK) with 3.15 billion HKD [3] Stock Performance Summary - Xiaomi Group (01810.HK) saw a cumulative increase of 0.28% this week, with short-term funds continuing to flow in, adding 6.96 million shares over the past five days [4] - China National Offshore Oil Corporation (00883.HK) experienced a cumulative increase of 5.76%, with short-term funds maintaining an inflow trend, adding 12.9 million shares in the last five days [5] - Alibaba Group (09988.HK) faced a cumulative decline of 3.25%, with short-term funds predominantly flowing out, reducing holdings by 2.096 million shares [6] Daily Fund Flow Summary - On the latest trading day, southbound funds recorded a net buying of approximately 12.89 billion HKD, with 7.27 billion HKD from the Shanghai-Hong Kong Stock Connect and 5.61 billion HKD from the Shenzhen-Hong Kong Stock Connect [7] - Notable net buying included Alibaba Group (09988.HK) with 2.26 billion HKD, Semiconductor Manufacturing International Corporation (00981.HK) with 0.80 billion HKD, and Xiaomi Group (01810.HK) with 0.61 billion HKD [7] - Major net selling included China Life Insurance (02628.HK) with 0.26 billion HKD and Pop Mart (09992.HK) with 0.24 billion HKD [8] Additional Stock Insights - Semiconductor Manufacturing International Corporation (00981.HK) declined by 2.78%, with short-term funds showing a return, adding 0.94 million shares over the past five days [9] - Xiaopeng Motors (09868.HK) dropped by 6.80%, with short-term funds primarily flowing out, reducing holdings by 0.16 million shares [10] - China Life Insurance (02628.HK) fell by 3.25%, but short-term funds continued to flow in, adding 4.298 million shares [11] - Pop Mart (09992.HK) decreased by 1.81%, with short-term funds still flowing in, adding 0.255 million shares [12]

Group 1 - Southbound funds recorded a net purchase of 4.467 billion yuan today [1] - In the Hong Kong Stock Connect (Shanghai), China Mobile and Xiaomi Group-W received net purchases of 748 million HKD and 595 million HKD respectively [1] - Alibaba-W had the highest net sell amount at 1.45 billion HKD [1] Group 2 - In the Hong Kong Stock Connect (Shenzhen), the Yingfu Fund and Xiaomi Group-W received net purchases of 651 million HKD and 581 million HKD respectively [1] - Xpeng Motors-W had the highest net sell amount at 1.053 billion HKD [1]

- The report constructs quantitative factors based on Hong Kong Stock Connect holding data, categorized into "stock factors" and "flow factors" to reflect the characteristics of Southbound capital movements and holdings [3][6][7] - Stock factors include Holding, HoldingValue, H2Volume, H2Share, and HoldingStability(N), which measure holding quantity, holding value, holding proportion relative to trading volume, free float shares, and holding stability over N days respectively [41][42] - Flow factors include ΔHolding, Inflow, Inflow2HV, Inflow2Amt, Inflow2Cap, and ΔHolding%, which measure changes in holding quantity, net buying, net buying proportion relative to holding value, trading amount, free float market value, and holding growth rate respectively [43][44] - The report highlights the complementary nature of stock and flow factors, where stock factors capture long-term preferences and institutional holding behavior, while flow factors reflect short-term momentum effects [7][39][45] - Stock factors perform better in low-valuation stock pools, with HoldingStability(3) and HoldingStability(10) showing monthly IC values of 4.13% and 6.42%, ICIR values of 1.52 and 2.02, and IC win rates of 65.05% and 69.90% respectively [8][77][86] - Flow factors perform better in large-cap and high-net-profit stock pools, with Inflow2HV, Inflow2Amt, and Inflow2Cap achieving monthly IC values of approximately 3% in large-cap stocks and over 4% in high-net-profit stocks, with ICIR values exceeding 1.5 and IC win rates above 65% [8][95][114] - A composite factor named "Holding and Flow Factor" was constructed by combining seven individual factors, including HoldingStability(3), HoldingStability(10), Inflow2HV(3), Inflow2Amt(3), Inflow2Cap(3), ΔHolding, and Inflow, after neutralization and standardization [134][135] - The Hong Kong Stock Connect Flow Select Portfolio, based on these factors, achieved an annualized return of 27.01%, with an annualized excess return of 20.19% compared to the benchmark index, and a Sharpe ratio of 0.88 [9][137][151] - After optimizing the stock selection space to include only large-cap, high-net-profit, and actively traded stocks, the adjusted portfolio achieved an annualized return of 21.70%, with an annualized excess return of 14.88% and a Sharpe ratio of 0.83 [140][144][145]