Group 1 - The Hong Kong stock market showed strong performance, with the Hang Seng Index rising by 1% and the Hang Seng Tech Index increasing by 2.76%, driven by significant gains in stocks like Baidu, which surged by 12%, and Alibaba, which rose by 4.5%, reaching a market capitalization of 3 trillion HKD [1] - A strategic cooperation framework agreement was signed between China Merchants Group and Baidu on September 15, focusing on collaboration in AI technologies, cloud computing, and various sectors including technology innovation, logistics, and finance [1] - Reports indicate that Jack Ma's return is boosting Alibaba's focus on artificial intelligence and its dominance in the food delivery market, with Goldman Sachs highlighting a surge in enterprise-level AI model token consumption, positioning Alibaba as a key beneficiary [1] - As of September 16, southbound funds have continuously net bought Alibaba for 18 days, totaling approximately 49.84 billion HKD [1] - SMIC is reportedly testing China's first domestically produced DUV lithography machine, indicating advancements in the semiconductor industry [1] - The probability of a 25 basis point rate cut by the Federal Reserve tomorrow stands at 96.1%, which is favorable for liquidity in the Hong Kong stock market [1] Group 2 - The Hong Kong Technology ETF (159747) closely tracks the CSI Hong Kong Technology Index, which is the only index in the Hong Kong market that fully covers major Chinese tech companies like Alibaba, Baidu, and SMIC, focusing on sectors such as AI, semiconductors, and new energy vehicles [2] - The Southbound Technology ETF (159269) tracks the CSI Hong Kong Stock Connect Technology Index, providing balanced coverage in core industries like the internet, automotive innovation, and pharmaceuticals, with a cumulative increase of 18.5% since its launch on July 10, outperforming similar products by 1.07% [2] - The Southbound Technology ETF (159269) has seen continuous inflows since July 25, with a total net inflow of 972 million HKD, and its shares have grown by over 59% in just two months [2] - The management and custody fee rate for the ETF is set at a competitive "0.3% + 0.05%", making it the lowest cost among similar products [2]

Core Insights - Hong Kong stocks reached a new high, with the Hang Seng Index rising by 1.63% and the Hang Seng Tech Index increasing by 2.48%, driven by significant gains in Baidu and Alibaba [1] Group 1: Market Performance - The Hang Seng Index rose by 1.63%, while the Hang Seng Tech Index increased by 2.48% [1] - Baidu surged over 12%, reaching its highest level since January 2024, and Alibaba rose by 6.5% [1] - Hong Kong Tech ETF (159747) saw a 2% increase, and the Southbound Tech ETF (159269) rose by 1.49% [1] Group 2: Company Developments - Alibaba and Baidu have begun using self-designed chips to train their AI models, partially replacing chips produced by Nvidia [1] - Alibaba launched a more efficient AI model, Qwen3-Next, which features 80 billion total parameters but activates only 30 billion [1] - Alibaba issued zero-interest convertible preferred bonds valued at approximately $3.2 billion, with about 80% allocated to enhance cloud infrastructure [1] Group 3: Investment Trends - Southbound funds net bought HK stocks worth 18.9 billion HKD yesterday, marking 15 consecutive days of net purchases in Alibaba, totaling 37.1 billion HKD [1] - The Southbound Tech ETF (159269) has seen a net inflow of 950 million HKD since July 25, with a 56% increase in shares over two months [2] Group 4: Economic Indicators - The U.S. August CPI was in line with expectations, indicating no worsening inflation, which supports market expectations for a potential Fed rate cut in September [1]