On September 10, the Hong Kong stock market witnessed southbound capital recording a net purchase of HK$4.551 billion. Specifically, the Shanghai-Hong Kong Stock Connect registered a net buying of HK$4.260 billion, while the Shenzhen-Hong Kong Stock Connect saw a net inflow of HK$291 million. The stocks attracting the highest net purchases from southbound investors included Tencent Holdings Ltd (00700), Yangtze Optical Fibre and Cable Joint Stock Ltd Co (06869), and CNOOC Ltd (00883). Conversely, the equities experiencing the most significant net selling were SMIC (00981), Innovent Biologics Inc (01801), and Alibaba-W (09988).
Looking at the active trading lists for both the Shanghai and Shenzhen Stock Connect channels, Tencent (00700) secured a net inflow of HK$721 million, while Alibaba-W (09988) faced a net outflow of HK$411 million. Reports indicate that DeepSeek has selected CITIC Securities to spearhead its initial public offering on the STAR Market, with plans to initiate the listing process within this year. Furthermore, DeepSeek has lowered the pricing for its Flash lightweight model. Morgan Stanley commented that although price competition for the Flash model could intensify, gross margins remain a crucial factor, leading the firm not to anticipate the onset of undisciplined price wars.
Yangtze Optical Fibre and Cable (06869) and CIG Shanghai Co Ltd (06166) registered net purchases of HK$407 million and HK$130 million, respectively. The 27th China International Optoelectronic Exposition (CIOE) is currently taking place at the Shenzhen World Exhibition & Convention Center, showcasing cutting-edge solutions such as 1.6T high-speed pluggable optical modules, CPO/NPO co-packaged optics, and MPO high-speed fiber optic connectors. Additionally, Corning Incorporated has announced a multi-year supply agreement with US telecom giant Verizon, valued at billions of dollars and extending through 2032.
CNOOC (00883) received a net buying of HK$227 million. JPMorgan noted that the Strait of Hormuz may not fully recover, and oil prices still require a high-risk premium. The bank observed that European oil stocks saw notable buying after the June agreement, but capital inflows have since been sporadic. Investors remain concerned that a sudden ceasefire or diplomatic breakthrough could lead to a rapid decline in both oil prices and energy stocks.
Xiaomi-W (01810) continued to attract capital, with an additional net purchase of HK$211 million, bringing its cumulative net inflow for the week to nearly HK$2.5 billion. Xiaomi recently unveiled four new models under the Pengcheng series, which received over 10,000 locked orders within just four minutes of the launch. Daiwa released a research report stating that the Pengcheng series will differentiate itself from the driver-centric SU7 and YU7 pure electric vehicle lines. Daiwa currently maintains a "Buy" rating on Xiaomi's investment. Moreover, the Xiaomi 18 Fold utilizes domestically produced LPDDR6 memory, marking a significant step for the widespread application of China's local semiconductor technology.
Innovent Biologics (01801) experienced a net selling of HK$472 million. The on-site negotiations and price consultations for the 2026 National Reimbursement Drug List have concluded, ushering in a waiting period for results. Whether concerning the landscape of blockbuster drugs already negotiated at the basic medical insurance level or the roster of commercial insurance catalogues finalized recently, these outcomes will shape the competitive dynamics and payment framework for domestic innovative drugs over the coming year. According to the schedule, the new version of the National Reimbursement Drug List and the commercial insurance innovative drug catalogue are expected to be officially announced in November, with unified implementation starting January 1, 2027. Additionally, Kingboard Laminates Holdings Ltd (01888) and SMIC (00981) faced net sell-offs of HK$9.68 million and HK$806 million, respectively.