On September 16, southbound trading in the Hong Kong stock market recorded a net purchase of HK$2.099 billion. The Shanghai-Hong Kong Stock Connect saw a net inflow of HK$2.669 billion, while the Shenzhen-Hong Kong Stock Connect experienced a net outflow of HK$570 million. The top net-buy targets included Z.AI (02513), SMIC (00981), and MINIMAX-W (00100), whereas the largest net-selling targets were Tracker Fund (02800), YOFC (06869), and GenScript Biotech (01548). Active stocks on the Shanghai and Shenzhen connects were also notable during the session.
Z.AI (02513) attracted a substantial net inflow of HK$3.121 billion. According to an analyst briefing on September 16, the company completed a combined equity and debt financing round of US$5 billion on September 11. Management raised its annual recurring revenue (ARR) guidance for year-end 2026 from US$2.4 billion to US$3.0 billion, representing a roughly 25% increase. As of mid-September, the company's total ARR across all business lines had already reached US$1.8 billion.
SMIC (00981) saw net buying of HK$600 million, while Hua Hong Semiconductor (01347) faced a net sell-off of HK$15.56 million. Goldman Sachs highlighted that, driven by generative AI and domestic demand, capital expenditures in China's semiconductor industry are expected to grow at a compound annual rate of 10% to 15% from 2026 to 2030, reaching US$82 billion by 2030. The bank also projects China's AI chip total addressable market to expand at a 69% compound annual growth rate from 2025 to 2030, reaching US$678 billion.
MINIMAX-W (00100) recorded a net purchase of HK$499 million. Several brokerages, including Huatai Securities, have maintained a highly bullish stance on the stock, anticipating a full acceleration in AI model commercialization over the next four to six months. The upcoming release of the M3 Pro model, featuring a parameter scale reaching 3 trillion, is expected to further boost revenue growth momentum.
Kingboard Laminates (01888) drew net buying of HK$375 million. This follows a wave of price hikes across the PCB supply chain. Guojin Securities noted that the second half of the year could present dual positives for PCB makers—new product launches and margin recovery—with earnings momentum likely to accelerate starting in the third quarter, positioning PCB as one of the most promising sectors.
Innolight Technology (03308) gained net inflows of HK$72.35 million, whereas CIG (06166) and YOFC (06869) saw net outflows of HK$231 million and HK$390 million, respectively. Recently, calls from U.S. AI giants to 'slow down' have sparked concerns over a potential pullback in AI spending. Citi, however, argues that such worries are largely overblown. The bank emphasizes that sustained growth in AI inference demand, coupled with ongoing supply constraints, will support continued capital investment across the entire ecosystem.
GenScript Biotech (01548) experienced a net sell-off of HK$302 million. The company recently announced a proposed placement of 77.126 million shares at a 4.7% discount, raising net proceeds of approximately HK$2.33 billion. About 70% of the funds will be allocated to expanding the capacity and infrastructure of its AIDD platform. J.P. Morgan indicates that market interest in GenScript's AIDD business remains strong. Notably, the company plans to spin off its subsidiary, ProBio, for a separate listing on the Main Board of the Hong Kong Stock Exchange.
Tracker Fund (02800) was subject to net selling of HK$604 million. Soochow Securities pointed out that while the Federal Reserve may not need to raise rates based on current data, market pricing for a rate hike is already quite elevated. If the Fed holds rates steady, markets may react negatively; if it raises by 25 basis points as expected, it would merely confirm existing bets. In either scenario, unless long-term yields decline significantly, Hong Kong stocks are likely to face downward pressure.
Additionally, Tencent (00700) saw net buying of HK$349 million, while CNOOC (00883) was subject to a net sell-off of HK$98.07 million.