On November 4 in the Hong Kong stock market, southbound trading recorded a net selloff of HK$3.277 billion. Among this, the Shanghai Stock Connect saw a net selloff of HK$3.163 billion, while the Shenzhen Stock Connect recorded a net selloff of HK$115 million.
The stocks with the largest net buying by southbound funds were SMIC (ASX: 00981), ZJ INNOLIGHT (ASX: 03308), and HUA HONG GRACE (ASX: 01347). The stocks with the largest net selling were the Tracker Fund of Hong Kong (ASX: 02800) and Kingboard Laminates (ASX: 01888).
SMIC (ASX: 00981) and HUA HONG GRACE (ASX: 01347) received net inflows of HK$1.184 billion and HK$543 million, respectively. According to reports, Samsung Electronics plans to fully exit the 8-inch wafer foundry business by the end of 2030. Samsung had previously only stated it would gradually reduce its 8-inch chip production lines, and this is the first time it has explicitly given a termination date.
ZJ INNOLIGHT (ASX: 03308) received a net inflow of HK$557 million. Recently, a screenshot of a research report claiming to be issued by Nomura, stating that the target price for ZJ INNOLIGHT's A-shares was lowered to 330 yuan, has been circulating rapidly in investment communities. When approached for verification, a Nomura representative exclusively replied that "the matter is untrue." In other words, Nomura never published this target price downgrade report, and the related circulating content is false information.
Alibaba-W (ASX: 09988) received a net inflow of HK$430 million. Alibaba has partnered with Apple to integrate Qwen into Apple Intelligence, allowing Chinese users to directly access Qwen's text and image understanding as well as content generation capabilities within Siri, writing tools, and visual intelligence. These features will be available for testing starting November 4 with the latest iOS developer beta and will be rolled out to Chinese users with the official release of iOS 27.3 in December.
YOFC (ASX: 06869) received a net inflow of HK$425 million. Nomura stated that YOFC's steady growth is mainly driven by robust AIDC demand and supply shortages leading to significant fiber price increases, as well as product mix improvement. The company is expected to continue benefiting from strong AIDC demand in the second half of 2026 and 2027.
Zhipu (ASX: 02513) received a net inflow of HK$48.59 million. JPMorgan noted in a research report that demand for Chinese AI models is currently between two demand tiers: programming and broader white-collar work. AI demand beyond programming has emerged later than the bank originally expected, but the bank believes the market is overly pessimistic and remains bullish on the sector, with Zhipu AI as its top pick.
The Tracker Fund of Hong Kong (ASX: 02800) saw a net selloff of HK$5.979 billion. Soochow Securities believes that the relative returns of Hong Kong stocks may moderate compared to July. First, even if there is short-term capital short covering, the current liquidity environment is not as favorable as in July. Second, market funds are waiting for a rebound signal in tech hardware; Hong Kong stocks are not in a high-low switching rhythm and rely more on resonance effects, but with low tech hardware content, the rebound space is relatively limited.
Additionally, Tencent (ASX: 00700) received a net inflow of HK$109 million, while Kingboard Laminates (ASX: 01888) saw a net selloff of HK$185 million.
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