On September 30, Northbound capital recorded net purchases of HK$15.48 billion in the Hong Kong stock market, with Shanghai-Hong Kong Stock Connect contributing HK$9.079 billion in net purchases and Shenzhen-Hong Kong Stock Connect adding HK$6.401 billion in net purchases.

The top three stocks attracting the most Northbound capital inflows were BABA-W (09988), Tracker Fund (02800), and Tencent (00700).

**BABA-W (09988)** attracted net purchases of HK$3.629 billion. On the news front, Alibaba Group CEO Eddie Wu announced on September 24 a comprehensive upgrade to Alibaba Cloud's full-stack AI system, achieving technological updates from AI large models to AI infrastructure. J.P. Morgan believes that Alibaba's roadmap serves as a demand indicator, with Alibaba Cloud remaining one of the biggest beneficiaries of digital operations and generative AI adoption. The bank expects that hyperscale capital expenditure will benefit downstream industries and companies. According to incomplete statistics, Northbound funds have cumulatively increased their positions in Alibaba by approximately HK$75.7 billion during the month.

**Tracker Fund (02800)** saw net purchases of HK$1.432 billion. Everbright Securities believes that despite Hong Kong stocks having risen for consecutive months, overall valuations remain relatively low, maintaining attractive long-term allocation value. Against the backdrop of continued AI industry development and the Federal Reserve's rate-cutting cycle, the Hong Kong stock market may continue its upward trajectory with volatility.

**Tencent (00700)** attracted net purchases of HK$1.134 billion. Western Securities notes that Tencent's launch and free access of multimodal models such as Hunyuan Image 3.0 brings high-quality image generation, 3D content generation, and API calling capabilities to the industry, significantly enhancing AI application development and deployment density while directly driving rapid growth in demand for Tencent Cloud computing power. Going forward, Tencent is expected to maintain AI infrastructure investment to support rapid development across various industries and its comprehensive AI product ecosystem.

**Xiaomi Group-W (01810)** received net purchases of HK$1.054 billion. Morgan Stanley reported that Xiaomi's 17 series smartphones achieved record-breaking first-day sales volume and revenue among domestic brands in 2025. Another surprise was that the flagship model 17 Pro Max accounted for over 50% of first-day sales, indicating Xiaomi's market share in the premium smartphone segment may accelerate further. Morgan Stanley believes these sales results confirm the significant effectiveness of Xiaomi's strategy.

Northbound capital continued adding positions in semiconductor stocks, with **Hua Hong Semiconductor (01347)** and **SMIC (00981)** receiving net purchases of HK$934 million and HK$613 million respectively. Huaxin Securities believes that following DDR4 price increases, memory prices continue to climb, with memory chips entering a new cycle. Additionally, the era of domestic AI chips has arrived, with the domestic AI industry chain achieving full integration from upstream advanced processes to advanced packaging, and downstream acceleration of model iterations by ByteDance, Alibaba, and Tencent. The firm remains bullish on accelerated breakthroughs in domestic AI computing infrastructure.

**KUAISHOU-W (01024)** attracted net purchases of HK$622 million. Kuaishou announced organizational upgrades to its existing commercial system to better serve merchants focused on long-term operations and capture future growth opportunities. Based on three core commercial scenarios - e-commerce, lifestyle services, and commercialization - Kuaishou is restructuring related businesses from its original commercialization, local, and e-commerce teams. The company stated this adjustment aims to clarify business objectives, align business strategies, focus resource investment, and enhance organizational agility, thereby improving both organizational efficiency and commercial monetization efficiency.

Additionally, **Meituan-W (03690)** and **Horizon Robotics-W (09660)** received net purchases of HK$466 million and HK$101 million respectively.