Core Insights - On November 6, southbound funds recorded a total trading volume of 105.78 billion HKD, with a net buying amount of 5.48 billion HKD, marking the 12th consecutive day of net inflows [1] Trading Overview - The Hang Seng Index increased by 2.12% on the same day [1] - Total buying transactions amounted to 55.63 billion HKD, while selling transactions were 50.15 billion HKD, resulting in a net buying of 5.48 billion HKD [1] - Breakdown of trading through Stock Connect: - Northbound Stock Connect (Shanghai): - Buying: 32.29 billion HKD - Selling: 30.94 billion HKD - Net Buying: 1.35 billion HKD [1] - Northbound Stock Connect (Shenzhen): - Buying: 23.34 billion HKD - Selling: 19.21 billion HKD - Net Buying: 4.13 billion HKD [1]

Summary of Key Points Core Viewpoint - Southbound funds recorded a net purchase of 5.479 billion HKD on November 6, indicating strong investor interest in certain stocks while others faced selling pressure [1] Group 1: Net Purchases - Xpeng Motors received a net inflow of 1.214 billion HKD, highlighting its attractiveness to investors [1] - Southern Hang Seng Technology saw a net purchase of 1.052 billion HKD, reflecting positive sentiment in the tech sector [1] - Hua Hong Semiconductor attracted a net buying of 961 million HKD, suggesting confidence in its growth prospects [1] Group 2: Net Sales - Weichai Power (000338) experienced the highest net selling, amounting to 548 million HKD, indicating potential concerns among investors regarding its performance [1]

Group 1 - Southbound funds recorded a net purchase of 54.79 billion HKD today [1] - Xpeng Motors and Hua Hong Semiconductor received net purchases of 12.14 billion HKD and 9.61 billion HKD respectively [1] - Weichai Power (000338) had the highest net sell amount, totaling 5.48 billion HKD [1]

港股通（沪）方面，小鹏汽车-W、小米集团-W分别获净买入8.61亿港元、4.18亿港元；中芯国际净卖 出额居首，金额为4.75亿港元；港股通（深）方面，中芯国际、南方恒生科技分别获净买入10.94亿港 元、10.52亿港元；潍柴动力净卖出额居首，金额为5.48亿港元。 ...

Investment Rating - The investment rating for Hong Kong Exchanges and Clearing Limited is "Buy" (maintained) [1] Core Views - The report highlights a significant improvement in ADT-related businesses, indicating potential for valuation uplift. The company's revenue and net profit for the first three quarters of 2025 reached HKD 218.5 billion and HKD 134.2 billion, respectively, representing year-on-year increases of 37% and 45% [5][6] - The report anticipates continued high growth in the company's fundamentals, driven by a recovery in IPO activities and sustained inflows of southbound capital, with a forecasted increase in ADT for 2025-2027 [5][6] Summary by Sections Financial Performance - For Q1-Q3 2025, trading, settlement, listing, custody, data, and other investment income grew by 57%, 66%, 16%, 25%, 8%, 10%, and 4% year-on-year, respectively. The core driver of revenue growth is the significant increase in trading and settlement fees directly linked to ADT [5][6] - The company has revised its ADT assumptions for 2025-2027 to HKD 2,580 billion, HKD 2,620 billion, and HKD 2,700 billion, reflecting year-on-year growth of 96%, 2%, and 3% [5][6] Market Outlook - The primary market for Hong Kong stocks is experiencing high demand, with 69 new listings in Q1-Q3 2025, a 53% increase year-on-year, and total fundraising amounting to HKD 1,883 billion, more than three times that of the same period in 2024 [7] - The report notes that the trading volume is expected to remain active due to the influx of quality assets from Chinese concept stocks returning to Hong Kong and the wave of A-share listings in Hong Kong [7] Valuation and Dividend - The expected dividend yield for 2025 is 3.0%, assuming a constant payout ratio of 90%. The report suggests that a potential interest rate cut by the Federal Reserve could drive foreign capital back into the Hong Kong market, benefiting the exchange [8] - The current PE ratio is 31.2, which is at the 22nd percentile of the past ten years, indicating room for valuation improvement [8]

Core Insights - Southbound capital has been a significant source of inflow into the Hong Kong stock market, with a cumulative net inflow exceeding 1.27 trillion HKD this year, marking a historical high for annual net inflows [1] - The innovative drug, technology, and non-bank sectors have seen substantial gains, with respective year-to-date increases of 79%, 53%, and 34%, compared to a 26% rise in the Hang Seng Index [1] - The largest Hong Kong innovative drug ETF (513120) received a net inflow of 585 million HKD in a single day, bringing its total size to 23.7 billion HKD [1] Fund Flows - The total net inflow for all ETFs in the market exceeded 3.777 billion HKD, with significant inflows into non-bank financials, innovative drugs, and technology sectors [1] - GF Fund Management led all public institutions with a total net inflow of 1.997 billion HKD across its ETFs, including those focused on A-shares and other sectors [2] - Notable ETFs under GF Fund Management include the innovative drug ETF (515120), low-fee创业板 ETF (159952), and the largest media ETF (512980), each receiving over 100 million HKD in net inflows [2] Market Outlook - Market volatility has increased entering November, with industry experts suggesting that fundamental improvements in 2026 may drive further gains in the Hong Kong stock market [2] - The AI industry is expected to catalyze improvements in net asset return rates (ROE) for sectors represented by the Hang Seng Technology Index, potentially leading to higher market valuations [2] - In terms of asset allocation, while the technology sector remains favorable, innovative drugs, non-bank financials, and certain cyclical assets are also worth attention [2]

Group 1 - The Hong Kong stock market showed strong performance on November 6, with the Hang Seng Technology Index rising over 2% in the afternoon, driven by gains in tech stocks, non-ferrous metals, and semiconductor sectors [1] - Southbound capital continued to actively invest in the Hong Kong market, with a net purchase amount of 10.373 billion HKD on November 5, bringing the total for the month to 25.677 billion HKD, and a cumulative net purchase of 1,285.694 billion HKD for the year [1] - According to Guotai Junan's recent report, under a neutral assumption, active public funds are expected to see an inflow of 200 billion HKD next year, with passive public funds also expected to bring in 200 billion HKD, and insurance and private equity funds projected to contribute 400 billion HKD and 300 billion HKD respectively [1] Group 2 - China Merchants Securities forecasts that by the end of 2026, there will be an additional 1.54 trillion HKD of long-term southbound capital, potentially bringing a total of approximately 11 trillion HKD in the next five years [2] - The Hang Seng Technology Index ETF (513180) is currently valued at a P/E ratio of 22.52, which is in the historical low valuation range, being below 73% of its historical valuation periods [2] - The technology sector in Hong Kong is expected to benefit from current trends in AI, with potential foreign capital inflows exceeding expectations due to the backdrop of Federal Reserve interest rate cuts and continued accumulation of southbound funds [2]

Core Viewpoint - The report from China Merchants Securities International indicates that policies will continue to attract medium to long-term capital to invest in Hong Kong stocks, with an expected additional space of HKD 1.54 trillion by the end of 2026, supporting a "slow bull" market for Hong Kong stocks [1] Group 1: Market Dynamics - The significant increase in Hong Kong stocks this year is primarily due to the continuous inflow of southbound funds from the mainland, with net inflows reaching HKD 1.17 trillion by the end of the third quarter [1] - The trading volume of southbound funds accounted for 23.6% of the total trading volume, with the market value of Hong Kong Stock Connect holdings surpassing HKD 6.3 trillion, representing approximately 12.7% of the total market capitalization of Hong Kong stocks [1] Group 2: Future Outlook - Long-term capital from the mainland is becoming a key driver for the restructuring of liquidity and optimization of the valuation system in the Hong Kong stock market [1] - The report anticipates that improvements in the interconnectivity mechanism, relaxation of QDII restrictions, better tax policies, the listing of quality assets in Hong Kong, and regulatory encouragement for long-term investments will continue to attract medium to long-term capital [1]

Core Viewpoint - The Hong Kong stock market is experiencing a significant surge in new stock listings, with notable gains observed in the initial trading days of these stocks, indicating a strong investor interest and profitability potential in the market [1][9]. Group 1: New Stock Performance - Wangshan Wangshui-B (02630.HK) is set to list on November 6, with its stock price soaring to 97 HKD per share during the dark trading phase, reflecting an increase of over 190% at one point [1][2]. - The stock closed at 85 HKD per share in the dark trading, marking a 154.72% rise from its offering price of 33.37 HKD per share, potentially yielding a profit of 10,300 HKD per lot (200 shares) for investors [1][3]. - Among the 14 new stocks listed in October, only one experienced a decline on its first trading day, while others saw substantial gains, with Jin Ye International Group achieving a remarkable 330% increase [9]. Group 2: Company Overview - Wangshan Wangshui, established in 2013, is a biopharmaceutical company with nine innovative drug pipelines, including two in commercialization, four in clinical stages, and three in preclinical stages [5]. - The company's core products include LV232, aimed at treating severe depression, and TPN171, a PDE5 inhibitor for erectile dysfunction (ED), with market projections indicating a stable growth in the PDE5 inhibitor market [5][6]. Group 3: Financial Performance - For the fiscal years 2023 and 2024, Wangshan Wangshui reported revenues of 200 million CNY and 11.83 million CNY, with net profits of 64.27 million CNY and a loss of 21.8 million CNY, respectively [7]. - The company attributed its 2024 net loss to a significant decrease in external licensing income, while the first four months of 2025 showed a further loss due to increased administrative expenses related to a new restricted stock plan [7]. Group 4: Market Trends - The Hong Kong stock market has seen a doubling of average daily trading volume to over 32 billion USD compared to the previous year, with 80 IPOs raising over 26 billion USD in the first ten months of the year, leading to a global ranking in IPO fundraising [9][10]. - Continuous inflow of southbound funds, which reached 1.17 trillion HKD by the end of Q3, is significantly enhancing the pricing power of the Hong Kong stock market, with long-term institutional investments expected to support a sustained upward trend [10][11].

截至目前，南向资金净买入超100亿港元。 ...