On September 21, the Hong Kong stock market recorded net southbound capital purchases of HK$4.074 billion. The Shanghai-Hong Kong Stock Connect saw net buying of HK$3.118 billion, while the Shenzhen-Hong Kong Stock Connect registered net buying of HK$956 million. The top net buy targets were YOFC (06869), BABA-W (09988), and Zhipu (02513). The stocks with the highest net selling were Tencent (00700), China Gold International (02099), and SMIC (00981).
YOFC (06869) received net buying of HK$581 million. Recently, Corning signed a decade-long supply agreement with Verizon, and China Mobile's procurement unit prices rose nearly 90% year-on-year, both reinforcing the ongoing supply-demand turnaround in the optical fiber sector. Galaxy Securities noted that the fiber industry is shifting from a traditional telecom cyclical segment to a computing infrastructure track, with backbone network expansion and data center internal demand converging to unlock long-cycle structural growth opportunities.
BABA-W (09988) attracted net buying of HK$553 million. Alibaba is set to host its 2026 Apsara Conference in Hangzhou from September 22 to 24. Citi anticipates that Alibaba will reaffirm its full-stack capabilities at the event, along with a three-year capital expenditure plan of RMB 380 billion and a target of US$100 billion in external cloud revenue by fiscal 2031. The company may also provide its latest MaaS annual recurring revenue (ARR) as of end-September, while maintaining its year-end ARR target of RMB 30 billion. Any positive surprises announced at the conference could potentially spur a favorable stock price reaction.
Zhipu (02513) and MiniMax-W (00100) saw net buying of HK$373 million and HK$34.18 million, respectively. China's domestic large-model industry is entering a new phase: the scaling and localization of computing power supply allows model companies to shift focus from competing for compute resources to optimizing efficiency. Inference speed, response quality, and unit cost are increasingly becoming the core metrics for commercial competitiveness, replacing sheer parameter scale.
Hua Hong Semiconductor (01347) recorded net buying of HK$207 million, while SMIC (00981) faced net selling of HK$215 million. Wafer foundries such as UMC, Powerchip, and Nexchip are seeing capacity utilization rates climb to high levels with supply falling short of demand. UMC has signaled upcoming price increases, and Powerchip is reportedly planning price hikes of up to 40%. Both UMC and Powerchip confirmed improving order momentum recently. UMC stated that if current supply-demand trends persist, wafer foundry price adjustments next year could be more pronounced than in the second half of this year.
GenScript Biotech (01548) received net buying of HK$165 million. GenScript recently announced a collaboration with Lilly's AIDD platform, Lilly TuneLab. The company will provide wet-lab services to TuneLab member companies, helping them rapidly generate experimental data, converting AI predictions into biological validation data to accelerate candidate drug evaluation. Everbright Securities pointed out that as large-model companies enter AI-driven drug discovery, the company's business model has undergone profound changes.
China Gold International (02099) saw net selling of HK$522 million. Minneapolis Fed President Neel Kashkari stated that inflation remains too high across all sectors of the U.S. economy, not just due to oil price increases. Kashkari noted in an interview that even after excluding volatile energy and food prices, inflation remains elevated relative to the economic outlook. Goldman Sachs now expects the Federal Reserve to raise interest rates by 25 basis points at its October policy meeting. Additionally, Victory Giant Technology (02476), Kingboard Laminates (01888), and Tencent (00700) saw net selling of HK$75.34 million, HK$92.42 million, and HK$815 million, respectively.
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